Wrap platform Nucleus has proposed reducing rates by as much as 15 basis points for larger portfolios worth more than £500,000 and has brought the portfolio value threshold for its 0.15 per cent pricing floor down to £1m, from its previous level of £5m.
Currently, portfolios worth up to £1m are charged at 0.35 per cent. This then incrementally reduces as portfolio value increases: those worth up to £2m are priced at 0.30 per cent; up to £3m at 0.25 per cent; up to £5m at 0.2 per cent; and above £5m 0.15 per cent.
Under the revised model, a maximum charge of 0.35 per cent will continue to apply for portfolios worth less than £500,000, with those worth above this but below £1m charged at 0.25 per cent. Thereafter, the 0.15 per cent floor will now kick in.
Barry Neilson (pictured), business development director at Nucleus, said: “This is a decision we are taking as a result of feedback from our advisers.
“Our advisers wanted us to keep our pricing model simple but become even more competitive and our financial success has given us a strong foundation to achieve this.”
Earlier this week (8 July), Seven Investment Management launched new share classes for its funds on its own platform which will be 25bps lower than their current rate in response to the Financial Conduct Authority’s recent ban on cross-subsidisation.