View the article online at http://citywire.co.uk/money/article/a886710
Alliance Trust Savings hikes account charges
Fund supermarket Alliance Trust Savings raises account fees as it seeks to cut losses and repay the cost of new technology.
Fund supermarket Alliance Trust Savings (ATS) is to hike its account fees and charge customers monthly as it seeks to cut losses and repay investment in new technology.
From 1 May the administration fee on its ISA and Investment Dealing Account will rise to £7.50 a month totalling £90 a year. It currently charges £18.75 a quarter, an annual cost of £75.
Charges on new Sipp (self-invested personal pension) ‘Savings’ accounts will rise to £18 a month, including VAT, totalling £216 a year. Customers currently pay an annual bill in advance of £186 including VAT.
For new investors seeking to take an income from their Sipp the charge will rise to £25.50 including VAT, equivalent to £306 a year. That compares to the current annual charge of £276.
Existing Sipp customers will not pay the higher fees until February 2017.
Fees on child ISA and Sipp accounts are not increasing but will move to £3.33 a month, instead of £10 a quarter, giving an annual charge of £40 including VAT.
Charges for customers with financial advisers will rise by a similar amount, the company said.
ATS, which is owned by Alliance Trust (ATST ), the 128-year-old global investment trust, is popular with investment trust investors. It also stands out from rivals like Hargreaves Lansdown in applying flat fees rather than variable charges based on a percentage of the money held in customer accounts.
Managing director Patrick Mill said: ‘Costs are going up and we have invested in technology for the platform which will make it better for customers to deal with us.’
Last year ATS signed a deal to switch to platform technology provider GBST and is due to complete the changeover in May after the busy end of tax-year period.
Technology costs and management changes cost the business £18.9 million last year, according to today’s annual results from Alliance Trust, pushing ATS’s pre-tax losses to £5.2 million from £3.9 million. Customer numbers rose to over 84,000 following the acquisition of Stocktrade from Brewin Dolphin.
News sponsored by:
From Brazil and Mexico, to Vietnam and Nigeria, the rapidly developing economies of Latin American and frontier markets, which are some of the smaller, less developed economies in the world, provides investors with a wealth of potential opportunities. Discover why BlackRock's investment trust range is well placed to help you make more of these exciting regions.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
Look up the investment trusts
More from us
- Alliance Trust: we need more women!
- Hargreaves Lansdown launches low-cost advice service
- Woodford lifts Hargreaves through difficult year
- Investment Trust Insider 9: the full cost of fund supermarkets
- The beginner's guide to fund supermarkets
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add firstname.lastname@example.org to your safe senders list so we don't get junked.
by Daniel Grote on Sep 26, 2016 at 09:48