A fund manager who declined to be named said the firm has agreed to pay iFast a trail fee of 60 per cent, up from 50 per cent currently, subject to an annual review.
Kelvin Goh, OCBC head of wealth advisory, said CPFIS currently comprises around 5 per cent of clients' investments. CPF's interest rates for the Ordinary and Special Accounts at 2.5 and 4 per cent, respectively, are"no slouch'' in today's low-rate environment, he said. Among some FAs there is concern that the pressure for a greater share of trail fees might drive advisers and platforms to recommend funds with higher trails. Trail fee sharing arrangements are typically not transparent to investors. They can be found in funds' product highlight sheets, but may be reported as a range.
"This came about because the policy did not take into account the whole ecosystem of fees and interactions between different players and ended up targeting only the charges/fees directly paid to advisers." Endowus is gearing up to launch an expanded wealth platform shortly, allowing access to significantly more funds offering institutional share classes which pay no trails, or provide for 100 per cent trail-fee rebates.
As at end-June, iFast Corp's group assets under administration rose 23 per cent year-on-year to a new record high of S$11.15 billion. CPFIS unit trust AUA from the B2B platform comprises about 15 per cent of the group's total AUA.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: The Straits Times - 🏆 8. / 63 Read more »
Source: BusinessTimes - 🏆 15. / 51 Read more »
Source: BusinessTimes - 🏆 15. / 51 Read more »