Fundsupermart (FSM) has recently announced that they would be charging their users a platform fee with effect from 1st May 2010. The charges will apply to investments made using cash or SRS. Increasing operating costs has been cited as one of the reasons for imposing the fee.
Under the new pricing structure, investors would expect to pay an additional 0.5% p.a. for equity funds and 0.2% p.a. for bond funds. To make up for the platform fees, upfront sales charges would be reduced.
The new pricing structure is summarised in the table below:
|Type of Purchase||Sales Charges|
|Equity funds – General Investors (below S$75,000)||1.50%|
|Equity funds – Sliver Investors ($75,000 to $249,999)||1.25%|
|Equity funds – Gold Investors ($250,000 or more)||1%|
|Money Market, Short duration bond||0%|
|Selected Fixed Income Funds||0.1% or 0.2%|
|All other Fixed Income funds||0.75%|
|Switching (same tier)||0%|
|Switching (lower tier to higher tier)||0.75%|
|Switching (0% sales charge fund to any fund)||Prevailing sales charge|
|Equity Funds Holdings (Cash/SRS only)*||0.125% per quarter|
|Fixed Income Funds Holdings (Cash/SRS only)**||0.05% per quarter|
|All CPF Holdings||Exempted|
All fees and sales charges quoted are exclusive of GST.
* Platform fee for equity holdings above $500,000 will be charged only 0.1% per quarter and equity holdings above 1 million will be charged only 0.075% per quarter (incremental basis).
**The quarterly platform fee of 0.05% for the cash fund will be waived until February 2011