Standard Life secures cut price shares for star managers

Standard Life has unveiled the full pricing details for more than 200 of its discounted funds, announced earlier this week.

The discounts mean advisers using the Standard Life platform can access star managers including M&G’s Richard Woolnough, Old Mutual Global Investors’ (OMGI) Richard Buxton and Invesco Perpetual’s Mark Barnett for less than the price on many other platforms, through discounted share classes, also known as “superclean” shares.

Standard Life Investments’ Global Absolute Return Strategies fund, one of the most popular products in the UK, has an ongoing charge of 0.72 per cent, compared with its clean share class ongoing charge of 0.89 per cent, a saving of 17 basis points.

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Graham Dow, head of investment group relationships, said Standard Life had “focused on where the majority of assets on the platform are” to get prices equal to or better than the discounts previously available through rebates.

While Standard Life offers discounted share classes for 59 mutual funds and 46 insured funds, the broadest ranges from other fund management houses come from OMGI and Invesco Perpetual, offering 42 and 40 discounted funds each.

Also on the list Neptune offers discounts on five funds - including Robin Geffen’s £978m Neptune Balanced fund - as does Liontrust. Investec has made six funds available with cut-price deals, having been the first to go public with its prices in November.

Threadneedle has four funds available at a discount, including Leigh Harrison and Richard Colwell’s £2.7bn UK Equity Income fund, although this is an ‘insured’ fund which is only available through Standard Life’s Sipp.

Aberdeen, Vanguard and M&G Investments have also all offered insured funds. Not all funds on the discounted list have been announced, with BlackRock’s pricing yet to be added.

Mark Polson, principal at independent consultancy The Lang Cat, said the move was a “really interesting step in the journey” for Standard Life. “They have worked very hard, but whether it is enough to get advisers to choose Standard Life, I don’t know,” he said.

Which groups have agreed to ‘superclean’?

Fund managerDiscounted fundsSipp only
BlackRocknot yet disclosednot yet disclosed
BNY Mellonnot yet disclosednot yet disclosed
Invesco Perpetual400
Old Mutual Global Investors420
Standard Life Investments7718

Source: Standard Life.