Investment Fees and Charges

Experience Makes the Difference

Fees & Charges

All fees are taken from your portfolio, with no VAT, and are covered by dividends. Charging structures are complex and can run deep. Investment Trusts do not have an Initial Fee which is generally 5% for a Unit Trust although platforms can sometimes offer reductions. Please also be aware that in a study carried out by Lipper, Investment Trusts have lower Total Expense Ratios (TERs) than open ended funds. It was found that on average the TER of an Investment Trust was about 0.5% lower than for Unit Trusts and open ended vehicles. Currently (2014) fees are reducing on both sides and it will be interesting to see where things finally settle.

Other factors that affect the comparison of fee structures include dealing frequency. I happen to have a low turnover on most of my portfolios, but a high purchase fee with a low annual management fee may be more expensive in the long run if you are dealing more often. Other factors include what you are getting for your money and, at least, you should have a dedicated manager/adviser and receive annual reviews, periodical reports on the market, truly free access to your adviser during working hours, access to various features such as retirement planning, cash flow modelling etc. Are all these benefits, that will be required at some point, included in the price or not? There are no hidden fees on my portfolios.

Please also see the discounts which kick in after £60k at the bottom of this page.

Account
Pigotts
Transact
The Chichester Account &
The Winchester Extra Capital Account
Purchase
2%
0.05%†
Rollover
up to 2%
NIL
Sale
NIL
NIL
Annual Management Fee
1.2%
0.50%/0.325%*
Annual Fee on Cash
NIL
0.45%/0.29%*
The Salisbury Extra Income Account Purchase
2%
0.05%†
Rollover
up to 2%
NIL
Sale
NIL
NIL
Annual Management Fee
0.5%
0.50%/0.325%*
Annual Fee on Cash
NIL
0.45%/0.29%*
Additional Set Fees

 

 

ISA
Nil
£12 p.a.
Pension
Nil
£80 p.a.
Setting Up Fees
per item

 

Makeovers Refundable if sign up
£500
Nil
ISA’s
£25
Nil
Individual Stocks & Shares
£25
Nil
Stockbrokers Accounts
£25
Nil
Life Office & Bank Products
£45
Nil
Pension Policies
£75
Nil
Termination Per Account
£150
Nil

* Discounts to Annual Management charges

Accounts below £180,000
Transact’s Discount
Transact’s Discounted Rate
Pigott’s Discount
Pigott’s Discounted Rate
Total Rate
Average Portfolio Value
Up to first
60,000
0%
0.50%
NIL
1.20%
1.70%
60,001
180,000
35%
0.325%
NIL
1.20%
1.53%
Accounts above £180,000

 

On the first
600,000
35%
0.325%
NIL
1.20%
1.53%
600,001 1,200,000 60% 0.20% 20% 0.96% 1.16%
1,200,001
2,000,000
85%
0.075%
40%
0.72%
0.80%
2,000,001
3,000,000
85%
0.075%
60%
0.48%
0.56%
3,000,001
and beyond
85%
0.075%
80%
0.24%
0.32%

Shown in monetary terms

Portfolio Value
Normal Fee (£)
Discounted Fee (£)
Equivalent Flat Rate
Saving (£)
Saving (%)
60,000
1,020
1,020
1.70%
0%
100,000
1,700
1,630
1.63%
70
4%
200,000
3,400
3,050
1.53%
350
10%
300,000
5,100
4,575
1.53%
525
10%
500,000
8,500
7,625
1.53%
875
10%
750,000
12,750
10,890
1.45%
1,860
15%
1,000,000
17,000
13,790
1.38%
3,210
19%
2,000,000
34,000
22,470
1.12%
11,530
34%
5,000,000
85,000
34,320
0.69%
50,680
60%

† The Discounts also apply to cash and if the grouped portfolio is over £1m Transact will refund your purchase fee in full.