The multi-manager’s superclean share classes were previously only available on Standard Life Elevate and Standard Life Wrap. Axa, which owns Architas, sold the Elevate platform in 2016.
Eight funds are affected with six of those seeing their annual management charge drop 20 basis points. The remaining Architas Multi-Asset Passive and Diversified Real Assets funds drop by 5bps and 10bps respectively.
Architas head of UK funds Sarah Ackland (pictured) said advisers should be able to access best-value pricing regardless of which platform they use.
Ackland says: “This move will also simplify the situation for advisers who are switching clients between platforms or using multiple platforms as part of their investment proposition.
“Having consistent pricing also removes the additional costs faced by advisers that wish to switch platforms and remain invested in Architas funds.”
Clean share classes will still be available for those investing direct, although most assets are held via platforms, a spokesperson told Portfolio Adviser.
FCA market study
The Financial Conduct Authority (FCA) platforms market study is expected to examine the role the industry plays in negotiating lower fees on behalf of customers when it is published this month.
Large platforms, such as Hargreaves Lansdown, Old Mutual Wealth and Aviva, typically use their scale to negotiate discounts, according to Lang Cat consultant Mike Barrett.
Barrett said there is an argument that whatever discount can be negotiated is good for the end client, but there can be unintended consequences for competition in the industry.
“If you’re in the superclean share class it’s not necessarily going to be easy to move that to another platform if they don’t have that share class.
“And quite often the platforms that have the superclean share class have a higher-than-average platform charge so the discount from the customer’s point of view is virtually non existent.”
Barrett said it would interesting to see if Architas’s superclean share classes are offered automatically or if advisers would have to instruct platforms to make a share class switch.
The change comes into effect on 1 August 2018.
HMRC is currently appealing a tax tribunal decision on rebates, an alternative discount mechanism for funds.
Architas superclean share class changes
| Fund/fund range | Clean share class AMC (bps) |
Super clean share class AMC (bps) |
Reduction in AMC (bps) |
| Architas Multi-Asset Active funds | 75 | 55 | 20 |
| Architas Multi-Asset Blended funds | 60 | 40 | 20 |
| Architas Multi-Asset Passive funds | 30 | 25 | 5 |
| Architas Diversified Real Assets fund | 65 | 55 | 10 |
| Architas Diversified Global Income fund | 60 | 40 | 20 |
| Architas MM UK Equity fund | 60 | 40 | 20 |
| Architas MM Monthly High Income fund | 60 | 40 | 20 |
| Architas MM Strategic Bond | 60 | 40 | 20 |
