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Standard reveals super clean deals; readies revamped pricing

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Standard reveals super clean deals; readies revamped pricing

Standard Life has revealed the names of seven out of the 11 fund groups which have agreed to offer super clean share classes on its platform.

The wrap has secured preferential share classes from:

  • Cazenove
  • Henderson Global Investments
  • Investec Asset Management
  • Neptune
  • Schroders
  • Standard Life Investments
  • Threadneedle Investments

It has agreed terms with four other fund groups who wished to remain unnamed until they are ready to make an announcement.

Standard said it was in the final stages of negotiations with other fund groups and claimed it was still on track to secure deals from 15 fund groups in total by the end of February 2014.

In July the wrap said it had agreed terms with 15 fund groups, but today said the delay in announcing further deals was the result of differing procedures and product development cycles for each fund group.

Standard said the discounts were valued on a total cost of ownership basis and that some fund groups were offering a lower annual management charge, some a new share class with lower additional expenses and others were replacing existing share classes with lower costs.

Standard said it would unveil its new platform pricing structure to advisers over the next month as it moves to offer bespoke pricing for each individual firm.

The platform said pricing would depend on each firm and that it would focus on its core client group which hold an average of £250,000- £300,000 on the wrap with a substantial amount in a Sipp wrapper.

Graham Dow, head of investment group relationship at Standard Life, said the move to secure super clean share classes was a ‘ground-breaking’ shift.

'This is a ground-breaking shift in fund pricing,’ he said. ‘The engagement and support we have had from all the fund groups acknowledges their clear intent to continue doing business with us on similar preferential terms to those that our customers currently enjoy.

'It is also a clear endorsement of our view that rebates are no longer sustainable in a mutual fund environment. Transparency is key in adviser charging, so it makes sense that transparency should now also extend to investment pricing.'

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