Fund supermarket turnover levels should be kept under control

As fund supermarkets make it easier for intermediaries to alter a client's portfolio of funds, the q...

As fund supermarkets make it easier for intermediaries to alter a client's portfolio of funds, the question arises as to what exactly is the right annual level of turnover? It is one that is likely to be asked, not least because as fund groups compete for distribution, trail commission payments are on the rise. Standard payment has always been 0.5% but the advent of fund supermarket and life platforms as well as multi-manager providers has meant this has begun to move up towards 0.6% and even 0.7%. Before too long, consumerists, and perhaps even the FSA, may want to know exactly what inte...