St James's Place (SJP) has given a rare insight into its ability to negotiate aggressively with fund managers.
SJP CEO David Bellamy told IFAonline the firm was able to gain access to managers in its panel of 30-odd funds for around half the price of a retail platform.
Standard Life and Skandia have negotiated post-RDR rebates on Neil Woodford's Income and High Income funds leading to total annual management charges of 71bps and 68bps on the respective platforms.
By contrast, Bellamy said SJP had access to the manager (pictured) - who runs the UK High Income and Invesco Perpetual Managed mandates - at a cost of 35bps.
"It's a big advantage to us, and probably an undersold advantage to be frank," he said.
"Our scale enables us to buy wholesale rates from fund managers and pass them straight on to clients. One of the things we have never done is play in any form of rebate. We can negotiate, for example, with Neil Woodford, and he runs our money for 35bps, and that's what clients pay."
He also revealed SJP paid just 23bps for Schroders to run money in its Managed Fund.
Bellamy was keen to play down talks of a possible sale by Lloyds of its majority stake in the firm.
Following news this morning that new business rose 46% in Q4, analysts at Panmure released a note which read: "there is no comment on the Lloyds Bank 60% stake which we view as likely to be (mostly but not entirely sold) in the current year."
"It doesn't impact at all in real terms," Bellamy said. "Analysts will speculate but I've had no news on that front.
"They are supportive shareholders, we do what we do, and that's it. What Lloyds does with their shares is purely a matter for them."
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