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View the article online at http://citywire.co.uk/wealth-manager/article/a730331

Barclays Stockbrokers unveils fund pricing structure

by Robert St George on Jan 27, 2014 at 08:57

Barclays Stockbrokers unveils fund pricing structure

Barclays Stockbrokers has unveiled its new fund pricing structure.

The platform has set its fund administration fee at 0.35% per annum, with no further charge on fund holdings over £500,000.

Barclays is the latest major platform to reveal its retail distribution review (RDR) pricing structure this month, following Hargreaves Lansdown and Fidelity.

Fidelity’s pricing starts at 0.35% too with no extra charges beyond £1 million, and Hargreaves starts at 0.45% with no extra charges beyond £2 million.

Barclays has also secured an average annual management charge of 0.68% on 2,000 funds, compared with 0.64% for funds on Fidelity’s Select List of approximately 140 products and 0.65% for the Hargreaves Wealth 150 list.

Barclays Stockbrokers director Alastair Thaw said in a statement: 'We are introducing what we believe to be a clear, simple and fair RDR funds pricing structure.

'The Retail Distribution Review has encouraged a more competitive marketplace, however we recognise that the changes can be confusing. Investors need clear and simple information about the price they are paying and we have designed our pricing structure with clarity, simplicity and fairness at its heart.'

He added: 'Where it will benefit our clients, we will be actively converting existing client fund investments to clean share classes from 1 March 2014 because we believe it is the right thing to do and supports the aims of RDR.'

The firm clarified that it would only convert ‘non clean’ funds to clean share classes where the combined cost of the fund administration fee and the clean annual management charge is less than ‘non clean’ fund annual management charge.

Barclays will also only permit purchases into clean share class, where they are available, from 1 March 2014.

2 comments so far. Why not have your say?

Reg

Jan 27, 2014 at 09:25

Wonder if Barclays Wealth will ' convert ' trail paying Funds held within Discretionary Portfolios to ' clean ' class as well on 1 March 2014, thus closing off the trail commissions ??

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getting more concerned every day

Jan 27, 2014 at 11:19

In Dec 2013 Barcs tipped William Hill to be a star performer in 2014, but had a sudden change of heart once our great leaders got involved in the hight street gambling stakes. Nobody knows what dark potential threat lurks round the corner

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