TERs of 240bps unsustainable - Schroders' Stoakley

Laura Miller
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Total expense ratios (TERs) of 240bps for a combination of adviser fees, discretionary management charges, platform costs and fund manager fees are 'unsustainable' and will likely be driven down, according to Schroders head of UK intermediary Robin Stoakley.

Speaking at a conference in New York, Stoakley (pictured) unveiled research carried out by Schroders polling 328 investment advisers, which suggested 32% charge clients an average of 100bps or more in client agreed remuneration. He branded the figure "a bit rich", especially when added to the other charges for which clients will have to foot the bill. The research suggested the majority of the advisers asked - 68% - charge between 50bps and 75bps. In terms of how they charge client fees, about two thirds of the advisers said they charge a combination of percentage of assets under a...

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