Initial Consultation (1st meeting) – Free of charge
Our fee for research, analysis and implementing advice is £5,000 for initial investments up to £2m.
Over £2m there is no initial charge subject to you taking out our Ongoing Adviser Service.
Standard fees for on-going management services is 0.50% of portfolio value.
Our fees are unique in the market place, we charge what we consider a very competitive standard rate of 0.50%, then we have a scale of fees that link to risk levels and our CPI (Consumer Price Index) benchmark, this is where we are different.
We use Distribution Technology’s market leading risk rating software to determine your attitude to investment risk. Once this is agreed we also discuss your capacity for loss. Once determined this decides the benchmark we will apply to your investment return, as shown in the table below.
| DT Risk Rating | DT3 | DT4 | DT5 | DT6 | DT7 |
|---|---|---|---|---|---|
| CPI + | CPI +1.5% | CPI +2% | CPI +2.5% | CPI +3% | CPI +3.5% |
| e.g. May 2020 CPI = 0.5% | 2 Benchmark | 2.5 Benchmark | 3 Benchmark | 3.5 Benchmark | 4 Benchmark |
We then apply our scale of fees linked to the benchmark as measured over a 1 year period as published by the Office for National Statistics.
If we get a return above the benchmark but below the benchmark plus 50%, then the standard 0.50% fee applies.
If we get a return over benchmark plus 50% but below benchmark plus 100%, then a fee of 0.60% applies to the portfolio.
If we get a return more than 100% of the benchmark, then a fee of 0.75% will be applied.
But here is where we are different, should we not reach the benchmark then we will reduce our fees.
The reduction is linked to the size of the portfolio value at the annual review date, and is reduced as per the table below.
| Valuation | £750,000 + | £1,000,000 + | £2,000,000 + | £3,000,000 + | £4,000,000 + | £5,000,000 + |
|---|---|---|---|---|---|---|
| Reduction | -0.05% (10%) | -0.10% (20%) | -0.15% (30%) | -0.18% (36%) | -0.20% (40%) | -0.25% (50%) |
| New Fee | 0.45% | 0.40% | 0.35% | 0.32% | 0.30% | 0.25% |
*Fees are subject to our maximum fee of £25,000pa
As you can see our fees can drop to as low as 0.25% for valuations above £5m.