Recommend a fund platform?

plarka

Is unbundling good? Should I wait till Cofunds unbundles and go with them? I don't really know what that means!

jem16

plarka wrote: »

Is unbundling good?

The platform review is likely to see an end to bundled platforms so in that sense unbundled is good.

Should I wait till Cofunds unbundles and go with them?

Cofunds is really an IFA platform not a DIY platform.

I don't really know what that means!

With bundled platforms, the retail charge for managed funds bundles up the fund provider charge, the platform charge and the IFA charge. So a typical managed fund with an AMC of 1.5% sees 0.5% to the IFA, 0.25% to the platform and 0.75% to the fund house. The fund paid all of these charges and normally the fund supermarket would keep the platform charge and in some cases rebate the IFA charge. Trackers are normally cheaper and basically subsidised by the revenue from the managed funds. It's this that the FSA want to end - they want all investments charged in the same way.

With unbundled platforms all funds are charged explicitly. There will be the fund charge, the platform charge and the IFA charge. Most managed funds are around 0.8% with trackers around 0.3%. However on top of that will need to be a platform charge at least so for those using trackers it will be more expensive.

jimjames

I use both Cavendish and HL. I like HL but I have moved all my trackers away from them due to their charges. It seemed totally unfair that share charges were capped at £45 but fund charges were not!

I'd go for whichever you find best now rather than waiting as it could all change later anyway.