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Skandia axes fund manager initial charges on platform

Skandia has removed all fund manager initial charges from its Selestia Investment Solutions platform.

Skandia claims that clients investing via platforms such as Cofunds, Transact and FundsNetwork could be paying up to £45m collectively each year in fund manager initial charges.

Skandia says that in addition to switch charges clients are paying up to £58m in unnecessary charges each year.

Skandia claims that FundsNetwork currently has fund manager initial charges on approximately 74 per cent of its funds, Cofunds on around 80 per cent and Transact on at least 52 per cent.

Head of proposition marketing Peter Jordan says: “Those platforms with complicated and expensive charging structures have sought to trivialise the impact of additional costs such as fund manager initial charges, however we should be under no illusion that price does not matter.

“In an economic environment where we are likely to see a period of low returns, every penny counts and price most certainly will matter.

“The use of more expensive platforms will need to be clearly justified to clients and the performance of the client’s investments will need to be sufficient to cover the additional cost.”

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The McDonald report on training and competence in the financial services industry was published by the Securities and Investments Board in May 1990. The report was accepted by the board shortly after that and the process of implementation began after that. It took four years altogether.

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Neptune video: Abenomics: the impetus for Japan’s fast-track recovery?

The remarkable performance of the TOPIX over the past year has caused many sceptical equity investors to look again at the Japanese market. These returns have come despite very significant problems facing the Japanese economy. Chris Taylor, manager of the Neptune Japan Opportunities Fund, discusses these problems and whether Abenomics will be able to overcome them, enabling the market to continue to rise.

In the video, Taylor addresses the following:

• The size and speed of Japan’s unprecedented monetary policy
• Abenomics and the implications should it fail
• Corporate Japan and beneficiaries of government policy

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