Skandia urges advisers to look at total cost of portfolio management

Skandia’s head of UK proposition marketing said the cost of outsourcing portfolio management – either through discretionary or managed portfolio services – could add anywhere between 30 and 90 basis points onto what clients pay, making a potentially big difference to investment returns.

He said: “Clients are already paying platform and fund charges. In my mind, there is no point in being swayed by a couple of basis points shaved off a platform charge unless you are considering the total cost of ownership. That has to include portfolio management charges – which are not always easy to pin down.”

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