View more on these topics

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.”


Professional perspective

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.

Defensive tactics

I first wrote about the Bloxham global equity income fund in May and am returning to it because a global income mandate offers considerable diversification from a purely UK fund.

US election

Capital Market Notes, November 2016 David Lafferty, chief market strategist at Natixis Global Asset Management, looks at the impact on markets and portfolios since the somewhat surprising outcome of the US election. Click here


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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