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Standard Life reveals terms on preferential fund deals

Standard Life has secured preferential deals with fund managers that will see the platform offer 291 funds at an average discount of 14bps.

The company completed its bulk conversion to clean share classes at the end of 2013. It announced the first group of managers with whom it had agreed discounted terms last September and has now set out its preferential fund deals in more detail.

Standard Life says the new terms broadly match discounts previously achieved through rebates. Henderson used to offer a rebate but will not offer a clean share class discount as its policy is not to offer discounted terms to any platform.

Standard Life will offer 198 funds with a clean share class discounted on either annual management charge, total expense ratio or ongoing charges.

Blackrock, Invesco, Investec, Neptune, Old Mutual, Liontrust, Schroders, Standard Life Investments and Threadneedle will all offer discounted clean funds. A further 93 funds will be offered at a discount through Standard Life-manufactured insured funds. 

Discounted insured fund deals have been agreed with Aberdeen, BNY Mellon, M&G, SLI and Vanguard.

The average AMC discount across the 291 funds is 13bps compared with the standard clean retail share class, with an overall average discount on the TER of 14bps.

Standard Life says the deals mean around 50 per cent of fund assets on the platform will be invested at a discount.

Investment Quorum man-aging director Lee Robertson says: “The fund groups are quite worried about a race to the bottom but Standard Life is a big player and has pushed quite hard on this.”

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There is one comment at the moment, we would love to hear your opinion too.

  1. and how many basis points do Standard Life charge as a platform ? If less and 0.2% pa then I might be interested -? otherwise better available else where.

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