Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a731483

Bestinvest secures 0.66% AMC on funds platform

by James Phillipps on Jan 31, 2014 at 10:28

Bestinvest secures 0.66% AMC on funds platform

Bestinvest is introducing a 0.4% platform fee for investors with up to £250,000, which undercuts Hargreaves Lansdown, but is slightly above Fidelity's new charge.

Investors with up to £250,000 will pay the 0.4% fee, which drops to 0.2% for assets between £250,000 and £1 million with no charge on amounts above that.

However, it will not offer the tiering that Fidelity has introduced, meaning even investors with larger sums will still pay the full charge on their initial £250,000, as is the case with Hargreaves. Sipp investors will pay 0.3% on the initial £250,000 and then 0.2% on the middle tier with no charge above that.

Bestinvest has secured an average 0.66% annual management charge on funds, which compares to 0.65% for Hargreaves and 0.64% on Fidelity's Select List. There are no fixed fees for holding investment trusts with trades priced at £7.50. The Association of Investment Companies (AIC) hit out at Hargreaves for treating investment trusts as a seperate investment class and introducing a charge for holding them.

Chief executive Peter Hall (pictured) said: 'Our goal is to offer investors an exceptional value-for-money service that is underpinned by rigorous and unbiased research. We know from our years of experience that saving for retirement is one of the most critical personal finance challenges clients face. 

'For the award-winning Best Sipp we have introduced an even lower service fee to enable clients to get the best possible outcome from their retirement savings.'

11 comments so far. Why not have your say?

HR Man

Jan 31, 2014 at 11:17

Sadly Bestinvest have nothing on their website about the changes for you to look at the detail as previously they charge you £7.50 a quarter for holding funds and shares which do not pay them commission. Hardly attractive if they announce something but can't find the detail on their own public facing site!

report this

Anonymous 1 needed this 'off the record'

Jan 31, 2014 at 11:20

Anyone with a decent sized SIpp owning unit trusts must surely go for a firm with capped fees i.e AJ Bell or Alliance Trust, they can save a fortune.

report this

Nic Nic

Jan 31, 2014 at 11:48

They may be dropping the £7.50 fee for holding shares investment trusts and ETF's, but it appears they will now charge you the platform fee on all assets. their press release, regarding the new charges is on their web site, https://select.bestinvest.co.uk/media/1851771/final_ois_pricing_release.pdf

report this

PhilB

Jan 31, 2014 at 12:12

@ HR Man: Have you misunderstood the quarterly charge - it is per account, no matter how much / many non-commission-paying securities you hold. A bit of a pain if you hold just £1K in a single ETF, but OK for bigger amounts.

Agree it would be nice if Bestinvest told us what they are doing, like when all this will kick off! And how they will in future charge for the non-commission stuff?

report this

Keith Cobby

Jan 31, 2014 at 12:19

Agree with other comments - avoid percentage charges and go for a fixed fee.

report this

HR Man

Jan 31, 2014 at 13:29

My point is that at present (pre- new charges) it costs £30 a year to have an ETF or share in a BI Investment Account where at present it is free at say HL- I had one ETF and the £50 amounted to a charge of 2% (10 times the AMC!) compared to 0 elsewhere like at HL- hence I moved.

BI have in my view let themselves down by not following up their statement with anything on their site -at least Halifax were able to manage that- I can't see me moving anything to BI- when Charles Stanley Direct will charge just 0.25%....

report this

HR Man

Jan 31, 2014 at 13:29

Sorry I meant to say that the £30 charge amounted to 2% to hold the ETF!

report this

HR Man

Jan 31, 2014 at 15:30

I have just had an e-mail from BI which makes things clearer -they were slow off the block - and although 0.4% is steep at least there are no hidden charges like having to pay to exit and income is reinvested free and there is an option to pay the fees through your current account rather than by selling units

report this

D Green

Jan 31, 2014 at 19:50

There ARE exit charges.

report this

Will Barratt

Feb 01, 2014 at 15:16

Is bestinvest got Tinley yet

report this

HR Man

Feb 01, 2014 at 18:18

What does that mean?!

report this

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?


Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

On the road

Click here to find out more from the Audience Development team.



Read more...

SJP soft-closes Asante and Wood funds

by Robert St George on Apr 23, 2014 at 15:28

Sorry, this link is not
quite ready yet