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.

FundsNetwork strikes platform deal with Barclays Stockbrokers

FundsNetwork strikes platform deal with Barclays Stockbrokers

Fidelity FundsNetwork has struck an exclusive deal with Barclays Stockbrokers to provide the bank with its core fund platform.

In a move that will see Barclays Stockbrokers compete with major fund supermarkets such as Hargreaves Lansdown, the partnership will provide the bank with a new and enhanced mutual fund offering for its clients through its existing Funds Market platform.

As part of this enhanced fund range, Barclays Stockbrokers’ platform will boost the number of funds available, from its current offering of 1,000 funds which can be traded online, to 2,000. This will then be expanded to 3,000 within the coming weeks.

The new development will also see a significant change to the Funds Market charging structure. The enhanced platform will have no initial charges on funds, no dealing commission, and for funds in a Barclays Stockbrokers account, there will be no account administration charge.

As well as this, Barclays Stockbrokers plans to offer a ‘loyalty bonus’ to clients, similar to that offered by Hargreaves Lansdown, which will see a level of the trail commission rebated, the extent to which depending on the nature of the underlying fund.

Rupert Dickinson, head of Barclays Stockbrokers, said: ‘It will be hugely competitive; especially when you add this to our existing leading position in share-trading.

‘We are absolutely determined to be market leader in this space. We are number one in the active trading space and we want to be number one in self-directed services through the UK. With this combination, we have a strong foundation.’

Dickinson said there have been three main drivers spurring these developments, including the move among clients to become more self-directed in their investments, as well as the provision of online services.

‘The retail distribution review will also drive more of that activity – more money will go into self-directed investor services,’ Dickinson said.

He added the firm has done research on its clients, who are looking for all investments in a single place, and a wide-range of funds to choose from, as well as the ability to use tools and market data to help their selection.

‘There will be a fair amount of change over the next 18 months. So we are delivering a wide range of services for investors holding funds, adding to our heritage of active trading,’ said Dickinson. ‘The world in the next 18 months will see a seismic amount of change.’

David White (pictured) head of FundsNetwork, added: ‘From our perspective, we are a technology enabler, extending our administration services to feed into Barclays Stockbrokers, including straight through processing and automation. This is an exclusive for Barclays.’

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: Barclays' former advisory boss on his move into property

Profile: Barclays' former advisory boss on his move into property

On paper, Rick Denton might have been expected to finish his career in banking

Wealth Manager on Twitter