Our costs and charges

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Let’s be clear.   Any service costs, and financial service is no exception.  Costs represent service which helps you achieve your objectives, but they can also prevent you from achieving them.  There are two rules of thumb.  Firstly, you should only pay what you need to pay and (remembering this is vital) costs are one of the very few things you can control before you start investing.

This is why we want you to know exactly what our service costs before you start.  We will never seduce you with implications that investing is free.  It isn’t.  But we are fair and we are highly competitive.  You pay us on two occasions; firstly, when you invest initially and then on an ongoing basis.  You pay our fund managers too, when you invest initially and on an ongoing basis.  Each element covers different aspects of our service.

Initial charges. We will charge you 0.25% of each initial contribution.  That works out at (for instance) seventy five pence if you invest £300 per month or twenty five pence if you invest £100 per month. Similarly, if you invest £10,000, we are paid £25.00.   Our charge covers business, compliancy and regulatory overheads, and services needed to run your portfolio, and acting on your instructions.

Ongoing charges. Then, we are paid a further 0.34% per annum for managing your investments. This is where we provide you with ongoing value.  It covers the support, investment management, administration of your portfolio, the rebalancing to ensure that your investments stay within your capacity for loss and risk inclination, and six monthly statements.

If you wish, at no extra cost to you, we will issue a capital gains tax statement in time for you (or your accountant’s) tax return and we will ensure that if you have an unused ISA allowance we scoop up any money from non ISA investments into that more efficient wrapper.  Our ongoing services are optional.

Our investment managers charge you a further 0.46 – 0.52% per annum and 0.25% for any initial contribution(s).  This fee includes all buying, dealing (valuable, as ours is a discretionary service, so the fund managers will deal as often or as little as they feel appropriate in order to retain best performance for your funds), fund custody and administration charges.

Put advisory and fund management costs together, what does it mean?

We expect that the overwhelming majority of our clients will  pay 0.82% per annum for an ongoing, all inclusive service.  This includes advisory, discretionary fund management, all dealing, buying and selling, platform and reporting costs.

This means that if (for example) you have £25,000 invested with us, you’ll pay £205 a year (or just over fifty pence a day) for an ongoing service.  That includes everything – the custody costs, the advice, cost of your funds (on average, each portfolio has fourteen), the platform, the discretionary dealing, buying and selling, the rebalancing of your funds and any subsequent buying and selling, the reporting and the custody charges.  Further, we don’t charge exit costs either (although if you want a paper copy of your six monthly statement, we do charge a fiver).

Other costs may be applied by the underlying fund managers such as a Dilution Levy on an ad-hoc basis. These are highly infrequent but may be applied from time to time to stem inflows/outflows and address liquidity issues. You should also bear in mind that these charges might be amended in the event of legislative or regulatory changes that are also beyond our control.  Our ongoing costs and charges are optional.  Please click here to access our formal client documentation.