Barclays share price: Bank’s fund shop unveils new pricing structure

on Jan 28, 2014
Updated: Oct 21, 2019
Listen Tuesday, January 28: Barclays Stockbrokers yesterday unveiled a new pricing structure, introducing a 0.35 percent annual charge for fund investors. The broker, which has a customer base of approximately 300,000 clients, said the average fund investor would pay a total of about one percent a year once the separate fee imposed by the fund manager was taken into account. Under the current pricing structure, investors pay about 1.5 percent per year.

The new administration fee is the same as the one offered by rival platforms Fidelity Personal Investing, rPlan and TD Direct Investing. However, no fees will be payable on fund assets above ₤500,000 – a lower level than many others. Alistair Thaw, head of Barclays Stockbrockers, said that the ₤500,000 cap “allowed Barclays to make a fair return while giving value to the customer”. A minimum annual fee of ₤35 will be charged to each account, which might impact smaller clients with under ₤4,000 on the platform and may see them pay more. The maximum fee will be capped at ₤1,750.

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Barclays will not charge for the buying or selling of funds and will reduce its share dealing charges by ₤1 per trade. Thaw added that the company was planning to announce a reduction in administration charges for self-invested personal pension plans shortly. “We actively keep an eye on the market to remain competitive but we don’t think the battleground in this space will all be about pricing in future,” Barclays Stockbrokers director Alastair Thaw said. “Price sensitivity isn’t the only thing that drives clients to choose asset classes.”

Barclays, Fidelity and Hargreaves Lansdown (LON:HL) are currently the leaders of the DIY platform market, with a combined market share of 52 percent. Analysts at Platforum have commented that the similarities between the three platforms have made the ‘price war’ for investors more of a ‘pub brawl’, as the savings depend on the type of investment (e.g. holding an Isa vs share dealing) and the size of the funds invested.

**Analysts on Barclays**
Deutsche Bank reaffirmed its ‘buy’ rating on Barclays’s shares in an investors’ note sent last week.
One equity analyst rates Barclays’s shares as a ‘sell’, 9 give them a ‘hold’ rating and 14 call them a ‘buy’. The stock currently has a consensus rating of ‘buy’ and an average price target of 322.18p.

**As of 08.34 UTC buy Barclays shares at 273.58p.**
**As of 08.34 UTC sell Barclays shares at 273.56p.**
**As of 08.34 UTC buy Hargreaves Lansdown shares at 1,463.10p.**
**As of 08.34 UTC sell Hargreaves Lansdown shares at 1,462.90p.**
Trade stocks with Hargreaves Lansdown from £5.95 per deal.
Prices can go up and down meaning you can get back less than you invest. This is not advice. Dealing services provided by Hargreaves Lansdown.


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