Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Barclays starts move to unified discretionary rate card

Barclays starts move to unified discretionary rate card

Barclays’ Wealth and Investment Management has started to move its clients onto a unified discretionary rate card, Wealth Manager understands.

It is a move that is likely to take some time as it is understood numerous fee rates exist internally, with some dating back to the days of Greig Middleton and Gerrard Investment Management, which were both taken over by Barclays in the 2000s.

Annual management fees under Barclays’ chosen charging structure for risk profiles 2 to 5 start at 1.25% for the first £1 million, dropping to 1% on the next £2 million, 0.75% on the next £4 million and 0.5% on the balance over £7 million.

For risk profile 1, the cost is 0.75% on the first £1 million, 0.5% on the next £2 million dropping to 0.25% over £4 million.

Clients need to have a minimum of £250,000 to invest and the rate card says some of the asset management fee will pay for the activities carried out by its private bankers.

Additional costs include government levies and taxes, third party brokerage costs, annual management fees on funds, re-registration and charges for additional transactions.

Clients are gradually being moved onto the unified structure, and further enhancements to Barclays’ discretionary proposition are expected under new chief executive Peter Horrell. 

Since Horrell took over the wealth and investment arm from previous chief Tom Kalaris, the business has been overhauled following a strategic review.

This has involved a 35% reduction in private banker headcount and a streamlined regional management structure. Linked to this, the proposition for sub-£500,000 clients has been revamped.

Clients in this category no longer have a dedicated investment manager. Instead they have a new point of contact, known as a private client services manager. They are not regulated but are overseen by a regulated private clients manager who is on hand to assist. 

A Barclays spokesperson said: ‘We are planning further refinements to our discretionary proposition, including the consolidation of historic charging structures and ensuring client holdings are moved to clean share classes. We remain committed to communicating these changes to clients as and when they occur.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Navigating geopolitical risk with ETFs

Navigating geopolitical risk with ETFs

ETFGI’s Deborah Fuhr on how investors can use exchange-traded funds to position their portfolio.

Play Sarasin’s Boucher: why I like salmon with chocolate

Sarasin’s Boucher: why I like salmon with chocolate

Henry Boucher, manager of the £129 million Sarasin Food & Agriculture Opportunities fund, explains why he is gobbling up salmon and chocolate stocks.

Play Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Alibaba hype, the UK slowdown and opportunities in European sovereign bonds

Libby Ashby and leading wealth managers analyse what the Alibaba IPO hype means for Chinese equities, slowing growth of the UK economy and whether there’s anything left to play for in the European sovereign bond market.

Your Business: Cover Star Club

Profile: How David Esfandi is shaping Canaccord Genuity WM

Profile: How David Esfandi is shaping Canaccord Genuity WM

After six months as chief executive of Canaccord Genuity David Esfandi's ambitions are taking shape

Wealth Manager on Twitter