Lowest cost fund supermarket?

talexuser

Got this mail from Cavendish (presently have one of the family members in CoFunds through them)...

Quote:
Cavendish Online has created a fund supermarket that provides the cheapest route to buy and manage fund-based investments.

The all new Cavendish Online FundSupermarket will be powered by FundsNetwork (Fidelity) and will have no other charges than the annual management charges applied to the selected fund. As a result of this new facility, Cavendish Online customers will now benefit from:

NO initial charges on all funds

NO switching fees

NO Cavendish Online fee

100% rebate of natural trail commission

To be totally clear you will not have to pay Cavendish Online anything for any future investments. The Cavendish Online FundSupermarket will be the cheapest route for you to buy and manage a stocks and shares ISA or JISA.

You may want to consider moving your Cofunds account to the Cavendish Online FundSupermarket to benefit from NO switching charges. The Cavendish Online FundSupermarket platform provides very similar fund choice and functionality to the Cofunds platform but you will now benefit from the additional advantage of no switching fees. If you would like to move your investments to the Cavendish Online FundSupermarket please visit our website for more details.

Unquote.

I assume CoFunds might have to follow to remain competitive re the 0.25% switching fee, otherwise everyone will leave them?

Is this is now a better deal than HL for funds?

Special_Saver2

I think this is currently the best offer available for funds in general. What you should do though is decide which funds you want and then compare the discounts with H-L and Fidelity Fundsnetwork via Cavendish. Their websites will tell you how much of a commission rebate you will get.

It will be interesting to see how Cofunds and H-L react to this development.

There is already a discussion of the new Cavendish / Fidelity deal on another thread - see pages 3 and 4 of the low cost ISAs thread.

SS2

JohnRo

Looks very interesting for those with the time and inclination to manage it. Also states on the website..

An investor WILL NOT pay anything directly to Cavendish Online. The only charge that an investor will have to pay is the AMC (Annual Management Charge). Cavendish Online will then rebate any natural trail commission received back to the client. Cavendish Online will retain a small proportion of the total annual charge payable, equivalent to £5.34 per annum for an ISA valued at £10,680.

Thats just 1/10th of what would typically be charged as trail isn't it? Will they make it clear and transparent what portion of the funds AMC is commission and what level of rebate is being offered after their miniscule cut is taken.

Hats off to them I say.

dunstonh

I assume CoFunds might have to follow to remain competitive re the 0.25% switching fee, otherwise everyone will leave them?

Cofunds are just about the only platform now still charging 0.25% on fund switches 9or not having a free switch option). Their new platform is on the way but not ready yet. Details is not known but expect it to be clean.

Cavendish is just about the cheapest going for DIY currently. However, my brief look at it (and the fact it uses Fidelity) would indicate that it will need further adjustments with the platform review unless the FSA does a U-Turn. For now though, it puts them in the lead.

koru

Special_Saver2 wrote: »

I think this is currently the best offer available for funds in general. What you should do though is decide which funds you want and then compare the discounts with H-L and Fidelity Fundsnetwork via Cavendish. Their websites will tell you how much of a commission rebate you will get.

Alliance Trust Savings will be cheaper than both these platforms for some people, so I would include ATS in a comparison.