Terry Smith: Platforms adding to fund costs

Smith - who has launched his own equity fund which is listed on Skandia's platform - said fees on funds in the UK were being inflated by pressure from platforms. He said: "Fund management fees are too high in the UK. One of the reasons is the advent of fund platforms. "The platforms get their revenue from trail fees paid from a proportion of the funds' management fees. They therefore have a vested interest in management fees remaining high enough to pay their trail fees." Smith said the need to pay trail fees to platforms meant fund managers had to charge enough to cover their own ...