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SCM Asset Management Research on charges
North Star
Posted: 12 February 2018 13:06:37(UTC)
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This report came out this morning and after a quick read looks a bit worrying.

https://scmdirect.com/wp...esearch-12-Feb-2018.pdf

Opinions please.
4 users thanked North Star for this post.
Tim D on 12/02/2018(UTC), Redundant (Old Timer?) on 12/02/2018(UTC), Sara G on 12/02/2018(UTC), dyfed on 12/02/2018(UTC)
Mickey
Posted: 12 February 2018 13:46:34(UTC)
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She seems happy to charge 0.98% and rake in the fees.
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North Star on 12/02/2018(UTC)
Tim D
Posted: 12 February 2018 13:49:09(UTC)
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After a quick skim, my immediate reaction is "what does it take for this to turn into the next PPI-like compensation feeding frenzy?"
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North Star on 12/02/2018(UTC), Alan M on 18/02/2018(UTC)
Sara G
Posted: 12 February 2018 17:17:48(UTC)
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Every investor should read that report...
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Alan M on 18/02/2018(UTC)
dyfed
Posted: 12 February 2018 17:34:27(UTC)
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better do a TP and buy shares direct
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Sara G on 12/02/2018(UTC), Tim D on 12/02/2018(UTC)
chubby bunny
Posted: 12 February 2018 19:24:51(UTC)
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Mickey;57016 wrote:
She seems happy to charge 0.98% and rake in the fees.


To be fair, SCM's management fee is only 0.48% and the rest is ETF costs, dealing costs and a custody/admin fee. But yeah, 1% to hold a basket of ETFs is rather dear when 1.11% is the total cost of ownership for the average active fund.
Mickey
Posted: 12 February 2018 21:19:08(UTC)
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chubby bunny;57044 wrote:
Mickey;57016 wrote:
She seems happy to charge 0.98% and rake in the fees.


To be fair, SCM's management fee is only 0.48% and the rest is ETF costs, dealing costs and a custody/admin fee. But yeah, 1% to hold a basket of ETFs is rather dear when 1.11% is the total cost of ownership for the average active fund.

Seems very fair to me, her fees are hardly ground-breaking but for years she has been harping on about industry charges.
chubby bunny
Posted: 12 February 2018 22:44:44(UTC)
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Mickey;57054 wrote:
chubby bunny;57044 wrote:
Mickey;57016 wrote:
She seems happy to charge 0.98% and rake in the fees.


To be fair, SCM's management fee is only 0.48% and the rest is ETF costs, dealing costs and a custody/admin fee. But yeah, 1% to hold a basket of ETFs is rather dear when 1.11% is the total cost of ownership for the average active fund.

Seems very fair to me, her fees are hardly ground-breaking but for years she has been harping on about industry charges.


Well only 0.4% of the charge goes to SCM (+0.08% VAT) and this seems quite a fair fee for active management to me. They're hardly raking it in considering they've only just started making a profit after opening in 2009.

Anyhow, this report is about transparency, not the lowering of management fees, and SCM give a full breakdown of costs on the front page of their website. Like I said, the total cost is too much for a basket of fairly ordinary ETFs and it's not something I'd invest in, but this industry definitely needs a kick up the arse.
Mickey
Posted: 13 February 2018 08:20:40(UTC)
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