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Skandia secures average 0.52% annual charges on WealthSelect

Adviser-focused fund platform Skandia has hit back at direct-to-consumer rivals by announcing that funds in its new WealthSelect range carry average annual management charges of 0.52 per cent.

The range of 55 funds, many of which are run by a host of third-party UK asset managers, are on average 23 basis points cheaper than the standard 0.75 per cent annual charges paid on equivalent funds.

Skandia has been pressing the asset managers that run the WealthSelect funds to offer extremely low annual fees, enabling it to price up the range at the lowest possible level.

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However, it is not clear how much of the fees on the WealthSelect funds go to Skandia and how much go to the third-party asset managers as only the overall average price was announced.

The 0.52 per cent average price appears to be cheaper than that secured by D2C giant Hargreaves Lansdown, which has persuaded the managers of funds on its ‘Wealth 150’ list of recommended products to offer up an average annual charge of 0.65 per cent exclusively to its clients.

Standard Life last year secured an average discount of 9bps from the standard 0.75 per cent annual charges for a range of funds on its platform.

However, Skandia WealthSelect does include three passive funds, which are likely to be extremely cheap, and many of the funds are managed by Skandia in-house.

Skandia said Old Mutual Global Investors single strategy funds would be priced at the same level as those from external groups in WealthSelect and the Old Mutual multi-asset funds would carry their usual charges.

Fidelity FundsNetwork recently announced its direct-to-consumer platform would charge average fees of 0.64 per cent for funds on its ‘Select’ list, but that group also manages many of the funds itself.

WealthSelect features funds developed by Skandia and managed by some of the UK’s leading fund management groups, including Invesco Perpetual, Threadneedle, Schroders and Artemis.

They will be made available exclusively on the Skandia platform to advisers as either as individual funds or as part of a model portfolio service run by John Ventre’s multi-manager team at Old Mutual Global Investors.