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 (2019) 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. We happen to have a low turnover on most of our portfolios, but a low purchase fee with a low annual management fee may be more expensive in the long run if you are dealing quite 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 our portfolios.
| Account | Pigotts | Transact | |
|---|---|---|---|
| A Bespoke portfolio, the G3 (Growth model) in full or in part | Initial Purchase | 2% | 0.05%† |
| Switch Purchase | 1% | 0.05% | |
| Sale | NIL | NIL | |
| Annual Management Fee | 1%* | 0.50%/0.28%* | |
| Annual Fee on Cash | NIL | 0.28%* | |
| D7 (Defensive Portfolio) | Initial Purchase | 2% | 0.05%† |
| Switch Purchase | 1% | 0.05% | |
| Sale | NIL | NIL | |
| Annual Management Fee | 0.75%* | 0.50%/0.28%* | |
| Annual Fee on Cash | NIL | 0.28%* | |
| SEI Portfolios (Income) | Initial Purhcase | 2% | 0.05%† |
| Switch Purchase | 1% | 0.05% | |
| Sale | NIL | NIL | |
| Annual Management Fee | 0.5%* | 0.50%/0.28%* | |
| Annual Fee on Cash | NIL | 0.28%* | |
| ISA | NIL | £12 p.a. | |
| Pension | NIL | £80 p.a. |
* Discounts to Annual Management charges
| Average Portfolio Value | Transact’s Discount | Transact’s Discounted Rate | Pigott’s Discount | Pigott’s Discounted Top Rate | Total Rate | |
|---|---|---|---|---|---|---|
| Combined Portfolios up to £100,000 | ||||||
| Up to first | 60,000 | 0% | 0.50% | NIL | 1.0% | 1.50% |
| 60,001 | 100,000 | 42% | 0.28% | NIL | 1.0% | 1.29% |
| Combined Portfolios over £100,000 | ||||||
| On the first | 600,000 | 42% | 0.28% | NIL | 1.0% | 1.28% |
| 600,001 | 1,200,000 | 62% | 0.18% | 20% | 0.96% | 0.98% |
| 1,200,001 | 2,000,000 | 86% | 0.07% | 40% | 0.72% | 0.67% |
| 2,000,001 | 3,000,000 | 86% | 0.07% | 60% | 0.48% | 0.47% |
| 3,000,001 | 5,000,000 | 86% | 0.07% | 80% | 0.24% | 0.27% |
| 5,000,001 | and beyond | 90% | 0.05% | 80% | 0.24% | 0.25% |
Shown in monetary terms
| Portfolio Value | Normal Fee (£) | Discounted Fee (£) | Equivalent Flat Rate | Saving (£) | Saving (%) |
|---|---|---|---|---|---|
| 60,000 | 900 | 900 | 1.50% | – | 0% |
| 100,000 | 1,500 | 1,412 | 1.41% | 88 | 6% |
| 250,000 | 3,750 | 3,200 | 1.28% | 550 | 15% |
| 300,000 | 4,500 | 3,840 | 1.28% | 660 | 15% |
| 500,000 | 7,500 | 6,400 | 1.28% | 1,100 | 15% |
| 750,000 | 11,250 | 9,150 | 1.22% | 2,100 | 19% |
| 1,000,000 | 15,000 | 11,600 | 1.16% | 3,400 | 23% |
| 2,000,000 | 30,000 | 18,920 | 0.95% | 11,080 | 37% |
| 3,000,000 | 45,000 | 23,620 | 0.79% | 21,380 | 48% |
| 5,000,000 | 75,000 | 29,020 | 0.58% | 45,980 | 61% |
| 7,500,000 | 112,500 | 35,270 | 0.47% | 77,230 | 69% |
† The Discounts also apply to cash and if the grouped portfolio is over £400k Transact will refund your purchase fee in full.