New tool enables investors and advisers to research the availability of investment companies on platforms.
The Association of Investment Companies (AIC) has added a tool to its website to allow users to research the availability of investment companies on platforms, as well as the costs of holding and transacting them. Based on research by platform consultancy the lang cat, the tool provides up-to-date information on 27 direct-to-consumer and 19 adviser platforms. The information is available via the AIC’s retail website and financial adviser site.
The launch of the comparison tool follows research into the costs of holding investment companies on direct-to-consumer and adviser platforms released by the AIC in October 2017.
The new information offers more detail, including previously unreleased data, and a more accessible format. It shows whether investment companies can be held on each platform and the types of accounts, such as ISAs or pensions, that are offered.
To help investors and advisers compare the costs of each platform, the guidance includes a series of heatmaps which show how much an investor might pay to hold and trade investment companies depending on the size of their portfolio. There are heatmaps for portfolios with different proportions of investment companies and open-ended funds, such as a 50/50% or 75/25% split, to reflect a variety of investor needs. For adviser platforms, there are also heatmaps to show the costs of holding investments inside and outside model portfolios.
In addition to the heatmaps, a detailed breakdown of charges for each platform is also given, including the costs of automatic dividend reinvestment, regular monthly saving and (for adviser platforms) rebalancing within model portfolios.
Annabel Brodie-Smith, Communications Director at the Association of Investment Companies, said: “With so many platforms available offering different services and at different costs, it can be hard for investors and advisers to find the one that’s right for them. To help, the AIC commissioned the lang cat to produce detailed research on the availability of investment companies on 27 direct-to-consumer and 19 adviser platforms. The research has been well received and the launch of this tool on our website will make it easier to find and to use.”
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- See heatmaps for direct-to-consumer platforms
- See heatmaps for adviser platforms
- The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment. Today, the AIC represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs. The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help members add value for shareholders over the longer term. The AIC has 347 members and the industry has total assets of approximately £174 billion.
- Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.