The Association of Investment Companies (AIC) has updated its platform comparison tables to make it easier for advisers and investors to make quicker and easier comparisons.
Self-directed investors can access information on how to invest on a platform, including which platforms offer investment trusts and what accounts are available on those platforms, such as ISAs, SIPPs and Junior ISAs. They are also able to compare platform costs and see a detailed breakdown of platform costs, as well as find out how to vote their shares or attend an AGM.
Advisers can access similar information, the AIC said, once they have created an adviser account on the website. The update includes changes to the cost comparison heatmaps, which provide a simple view of how platform costs compare.
Nick Britton, research director of the Association of Investment Companies, said: “While the platform market is a competitive one, it isn’t always easy to compare costs from one platform to another because of different charging structures. That’s why we launched our platform tables, in partnership with the lang cat, to help investors and their advisers make quicker and easier comparisons.
“Cost is not the only factor investment trust investors need to consider. They should think about the level of service they require, which accounts they need, and even more fundamentally, whether it’s possible to access all the trusts they want on the platform. We hope our platform comparison tables are useful to investors and advisers in making this important decision.”
Steve Nelson, insight director of the lang cat, which worked in partnership with the AIC to create the platform tables, said there are a number of different aspects to consider when choosing investment trusts in the context of platforms.
Nelson said: “Price is the most obvious comparable and potentially the most difficult to get to the bottom of, given the myriad of structures and options out there. If you’re particularly cost-conscious, there are considerable savings to be made.
“But price is just one factor. How much help and research you need with your choices, to what extent the platform will facilitate your voting rights and even simple availability are other factors that could need consideration too. Ultimately, choice is a good thing and reflective of a healthy market, but being as informed as possible can pay dividends.”
Source: theaic.co.uk/the lang cat. Based on 100% in investment trusts with four trades (buys or sells) a year. Investment is assumed to be within an ISA.
Main image: timothy-muza-6VjPmyMj5KM-unsplash
