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Skandia likely to keep current share class for unbundled proposition

Skandia is due to launch an unbundled pricing proposition in the second half of next year.

The firm says it is unlikely to ask fund managers for a clean share class as it believes unit rebates represent a better deal for clients.

A Skandia spokesman says: “We have not asked fund groups for a 75 bps share class. We believe the rebate mechanism is in the best interests of customers because it enables us to negotiate fund management costs on their behalf and we intend to pass rebates in full back to the customer. We are currently discussing the best way forward with fund groups.”

Fidelity and Cofunds have both revealed they are launching unbundled pricing models next year with Fidelity launching its proposition in Q1 and Cofunds in July.

Fidelity recently revealed the fees it receives from fund managers in its current bundled pricing model.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Unit rebates are messy to administer and confusing for the client – why isn’t Skandia in favour of the simpler and clearer method of cash rebates?

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