Cofunds has added switching fees to its services, charging investors a flat 0.25% for moving between...
Cofunds has added switching fees to its services, charging investors a flat 0.25% for moving between funds.
This, the group said, is usually a reduction on what investors currently pay when reallocating assets.
Switches between funds belonging to the same group have previously been free, but investors switching groups when moving funds faced a full initial charge. The flat fee is intended to level this field in terms of costs. The 0.25% is paid from the proceeds of the encashment of the fund being sold.
Cofunds is also reviewing its registration fees, the annual sum fund groups pay to have their funds on the platform, and may move to a more flexible structure like FundsNetwork.
Currently providers pay a fee to participate on Fidelity's platform and FundsNetwork take a percentage of the annual management fees on funds sold via the supermarket. Cofunds is also considering whether to replace the blanket charge with a volume-related fee.
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