Citywire printed articles sponsored by:
View the article online at http://citywire.co.uk/new-model-adviser/article/a579532
FundsNetwork wins race to launch unbundled platform
by Jun Merrett on Apr 02, 2012 at 09:59
Fidelity FundsNetwork has become the first fund supermarket to launch an unbundled version of its platform, which will offer rebate-free share classes, and a range of exchange traded funds (ETFs) and investment trusts.
The unbundled offering, which launched today, will charge a flat fee of 0.25% plus an optional £45 annual account fee.
Advisers who choose to invest in unbundled funds and pay the £45 annual account fee, which will be optional until 2013, will not have to pay any initial or switching fees. Advisers who choose not to pay the account fee will be charged a 0.25% switching fee. It is not yet clear if there will be an initial charge for unbundled funds.
Fidelity will take the fee in the form of units. Advisers can only access rebate-free funds through the unbundled pricing structure but can still access bundled funds via the bundled charging structure.
Cofunds announced it would launch its unbundled charging structure in the third quarter of 2012 with a £40 annual fee and a charge of around 0.25% with no initial or fund switching charges. The charges will be tiered, with the first £100,000 invested being charged at 0.29% reducing to 0.15% for £1 million-plus. Cofunds’ model is dependent on fund managers launching rebate-free share classes.
So far fund managers Cazenove, Invesco Perpetual, Schroders, Guinness Asset Management and MAM Funds have said they plan to launch a rebate-free share class.
Head of FundsNetwork David White (pictured) said: ‘With pricing, there are many structures you could adopt. We spent a lot of time researching and talking to advisers, and every single adviser told us to keep it simple.’
Skandia is set to unveil its unbundled proposition in the fourth quarter of 2012, but said it would launch a pilot version in the third quarter and add ETFs in 2013.
It is working on the project with South African IT company Global Edge Technology, a fellow Old Mutual-owned company, and aims to facilitate adviser charging on the bundled version of the platform.
News sponsored by:
Today's top headlines
More about this article:
More from us
- Gary Shaughnessy quits Fidelity for top Zurich role
- Cofunds to launch unbundled charging in Q3 2012
- Skandia to launch restricted model in 2013; reveals unbundled plans
- Barclays partners with FundsNetwork to take on Hargreaves