View more on these topics

Defaqto says ETFs will surge post-RDR

Defaqto says exchange-traded funds will grow in popularity after the RDR, but platforms will be key to their success.

A study by the research firm shows that 21 out of 27 wraps and platforms it considered allow investments in ETFs and the products are available on 102 out of 111 pure Sipps it analysed.

Defaqto says advisers will have to consider ETFs if they want to remain independent and the increased competition post-RDR will make low-cost options attractive.

Defaqto senior consultant Adrian Gaspar says: “With continued investor frustration at the performance of active funds and increased usage by fund managers and discretionary fund managers, it is clear that ETFs are here to stay and will continue to grow assets under management in the UK.”

But Tim Page, director of PageRussell, says: “ETFs are competing against institutionally-priced passive funds on platforms, with the additional disadvantage that many platforms charge additional stockbrokers’ fees for ETF trades and do not aggregate trades, which would reduce the costs. So for most portfolios sizes below £200,000 ETFs are at a cost disadvantage and I suspect advisers will opt for passive funds instead.”

Recommended

Allan Rosengren 480

Lighthouse attempts to reassure shareholders ahead of delisting vote

Lighthouse has attempted to reassure shareholders that its management is not looking to take control of the group, ahead of a vote on its proposed de-listing from Aim. Earlier this month, Lighthouse announced its intention to delist from Aim, citing a number of disadvantages it believed it was suffering due to its quoted structure. The […]

Germany’s AAA credit rating comes under threat

Moody’s has warned the outlook for Germany’s AAA credit rating is negative, citing concerns of wider eurozone troubles and the potential exit of Greece from the euro. The ratings agency has also placed the Netherlands and Luxembourg on negative outlooks in what is the first step towards a possible downgrade. A statement from the firm […]

11

Nic Cicutti: Are the PPI pests really harming IFAs?

About an hour ago, shortly before I began writing this column, my home phone rang. I have been expecting an important call, so I raced through the house, almost tripping over the dog in the process, and managed to grab the receiver in time. “Did you know that you may be entitled to compensation if […]

Schroders head of European and UK credit exits

Schroders head of European and UK credit strategies Adam Cordery has left the firm. Cordery was manager of the offshore Schroder ISF Euro Corporate Bond, the onshore Schroder Monthly High Income, Schroder Corporate Bond, Schroder All Maturities Corporate Bond and Schroder Long Dated Corporate Bond fund. Before joining Schroders in 2004, Cordery was head of […]

It’s too soon to write Apple off

By Ali Unwin, Chief Technology Officer & Fund Manager at Neptune Earnings season is noisy in the technology sector and a good quarter does not make a good investment. Numbers that come in marginally ahead or behind ‘market expectations’ are extrapolated to produce narratives showing the rise or fall of companies. Our job as technology […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com