Chartered financial adviser Shackleton, formerly Skerritts, is to cut platform fees for existing and new clients on the Shackleton Hub by up to 35%.

The company says it will also reduce the overall cost of its funds (OCF).

The changes from 1 February will mean: 

• The starting rate for investments between £0 and £500k will drop from 0.23% to 0.20%, a 13% reduction

• For investments between £500,000 and £1m, a new tier is introduced with a lower rate, dropping from 0.23% to 0.15%, a 35% reduction

• All other charges remain unchanged (see fee structure below).

In addition, the VT Esprit funds, part of Shackleton’s centralised investment proposition (CIP), have seen a reduction in OCFs of 0.02% - 0.07%.

While all customers will benefit, the cuts are particularly aimed at the lower end of the client portfolio size, below £1m in assets.

Fee structure from 1 February 

Fee structure up to 31 January

Source: Shackleton

VT Esprit Tactical Growth, the largest fund in the range at £340m, has seen its OCF fall from 0.75% to 0.68%. For a client with £1m invested in VT Esprit Tactical Growth on the Shackleton Hub, the fee reduction amounts to an annual saving of £1,250, Shackleton says.

Shackleton says it is passing on savings made through efficiencies due to, “significant growth in assets under management over the last two years.”

The company says clients may see further fee cuts in future.

The Shackleton Hub supports the firm’s Financial Planning advisory service and is powered by platform provider SS&C.

The Shackleton Hub provides clients with access to a whole-of-market range of funds, available across multiple wrappers, including GIAs, ISAs, pensions,and bonds.

Paul Feeney, CEO of Shackleton and former CEO of Quilter, said: “I am delighted that the efficiencies we have achieved through our growth over the last two years have enabled us to deliver this reduction in fees for both our existing and future clients.

“Our goal is to be the most trusted provider of financial advice in the country. I strongly believe that the changes announced today clearly demonstrate our commitment to delivering on this goal. It also highlights that we are true to the important core values that sit at the heart of Shackleton – respect, fairness, care, dependability and courage.”

Shackleton is based in London and manages £5.5bn of assets under advice and management. It operates as a single, nationwide financial advice company with a presence in 17 cities and towns across Britain.

• Financial Planning Today Analysis: Shackleton’s fee cuts on its platform underline how competitive the sector is becoming, particularly in view of the drive to increase funds under management each year. Like the ultra price competitive supermarket sector, most national financial advisers need to keep almost a daily eye on rivals to keep up. Following its rebrand from Skerritts to Shackleton the firm is setting out its intention to be a significant player in the sector and further fee cuts and enhancements are likely. Others will be watching.