Contrary to Peter McGahan's assertions in Money Marketing that supermarkets are exp-ensive and double charge, true fund supermarket platforms have been successful in the UK precisely because they do not layer double-charging on underlying funds.
A further factor that has ensured that fund super-markets have enjoyed a rate of adoption by IFAs quite unprecedented in the UK funds industry is the inclusion, on the major supermarket platforms, of a widely representative range of funds.
It is notable that the two leading players in the adviser fund platform space both launched with a “price neutral” model and feature a broad and fully-inclusive range of providers and funds.
Admittedly, some of the smaller platforms, with their different approaches, now seem to be struggling to keep pace with the leaders.
But while the fund super-market sector will inevitably continue to evolve, to suggest its extinction seems rather at odds with reality.
Marketing director, FundsNetwork, London