platform fees who's next

RetiredInThailand

I know that HSBC probably pay NatWest something out of the fund, but that is a not a direct fee paid by me and I cant escape it anyway, so I dont worry about it. I only worry about the bottom line.
I looked at Vanguard but saw no advantage once the extra fees and other drawbacks were taken into account. Plus my NatWest Stockbrokers nominee account is already set up with full direct debit/direct credit to my bank account, which makes it very easy to use.

As far as I know NatWest do discount the funds with higher costs; they announce that they have "hundreds" available. The discount rate varies from brand to brand, but as I said I have no interest in the funds with higher charges anyway so I have never investigated it fully.

dunstonh

I know that HSBC probably pay NatWest something out of the fund, but that is a not a direct fee paid by me and I cant escape it anyway, so I dont worry about it. I only worry about the bottom line.

The annual management charge is increased to cover the cost of undisclosed hidden commissions to the platform/broker. This is what the FSA have proposed to be banned and why charges will go explicit.

Fund houses are currently preparing clean share classes for their funds in readiness of that.

Schroder are one that have already introduced a clean share class. Their retail class A on Schroder income maximiser charges 1.64% TER. The clean class Z charges 0.89%. The retail class A paid the adviser 0.5%. It paid the retailer on average 0.25% (some more, some less).

Anyone who DIYs should be looking out for these new clean share classes and consider whether they are better off in these. Whilst managed funds will see the biggest drop, some trackers will see a drop as well.

grey_gym_sock

yes, one might hope that the HSBC trackers will drop AMCs from 0.25% to about 0.15%. but at the same time, if you hold them through a platform that doesn't explicitly charge you to hold them, the platform would start charging you something.

which makes me think that perhaps the cheapest place to buy HSBC trackers will be directly with HSBC. this is just guesswork, really.

on the whole HSBC vs Vanguard trackers question: i meant both are worth considering. i don't think there's a clear winner under all circumstances.

EDIT: i think the discount that natwest give for more expensive funds is only of the initial charge, not of trail commission.