Published: 24 April 2017
Ascentric has boosted clients' portfolios by over half a million pounds in 2016, thanks to the dealing capabilities of its in-house stockbroking service. The stockbroking team delivered an average price improvement of 8.5bps on each client trade of an exchange traded instrument during the year, leading to a cumulative £566,500 boost to clients' portfolios.
Over £106,000 of this was delivered during the week following the Brexit vote, highlighting the real difference which the service provides during volatile market conditions. The stockbroking service delivered these benefits thanks to the team's relationship with over 20 counterparties and the flexibility they have to decide when to time trades to achieve the an optimum price. The team traded over 300,000 client orders worth £829m during 2016. Ascentric's clients held over £900m in exchange traded instruments on the platform at the end of last year.
The announcement comes as Ascentric is set to adopt a new 'all-in' charging structure, under which clients will not be charged any fees for trading on the platform, including through the stockbroking service.
Over the lifetime of a portfolio, the price improvements available thanks to this service will make a real difference to client accounts in offsetting Ascentric's already low platform charging structure. An average Ascentric client, investing for 30 years, could see price improvements delivered through the service which effectively negates 85% of the client's charge on the platform over this period. If that same client remained invested for an additional ten years, they could see price improvements which could end up negating 100% of the platform charge.
An average Ascentric client who invested for just ten years would still see price improvements which should negate over half the cost of being invested on the platform over that period.
Commenting, Justin Blower, Head of Sales at Ascentric, said:
"These figures clearly demonstrate the tangible benefits provided by our in-house stockbroking service. The price improvements available will make a real difference in boosting the value of client portfolios over the longer term. This unique service makes us by far and away the most competitive platform when it comes to trading in exchange traded funds, a trend which is increasing dramatically as advisers tell us they are seeking access to cost-effective passive solutions for their clients."
"Our decision to introduce an 'all-in' charging structure, which covers all dealing done by this service, has been well received by our clients and the wider market. This new charging structure will compound the cost-effectiveness of trading which our in-house stockbroking service already offers."