Smart choices keep the cost of investing low.
Charges
We aim to provide a professionally managed portfolio with excellent results, while keeping the investment charges low.
Our Core portfolio costs 0.62% - 0.64% a year. Our Good Practice portfolio costs 0.55% - 0.69% a year.
Putting this in context, professionally constructed investment portfolios typically have an average charge of 1.1% a year, according to FCA reports.
Charge breakdown
There are 3 potential charges to be aware of with most investment portfolios, and ours are no different.
Layer 1: Portfolio management charges are 0.2% a year
We charge 0.2% a year to pay for the ongoing management of the portfolios. This is spread across all investors proportionately and collected monthly.
Layer 2: Platform charges are typically 0.15% - 0.2% a year
Our portfolios are exclusively available on the Fundment investment platform. They have one charge which pays for their custody, trading and product wrapper services. The charge level depends on how much you have invested on the platform. There are not usually transaction charges in addition.
Product wrapper fees can apply from a third party if they are providing you with an onshore bond or offshore bond. Pensions, ISAs and General Investment Accounts are provided by Fundment and do not have product wrapper fees. Product wrapper fees are not accounted for in the figures above as they can vary and are often too small to make any difference to the percentage charge when rounded.
Layer 3: Fund charges are typically 0.20% - 0.34% a year.
Each portfolio contains a number of funds managed by global fund management companies who charge a fee. The funds also incur transaction costs as they buy and sell investments within them. The charges come straight from the fund.
Core portfolio: 0.25% - 0.26% a year plus 0.02% - 0.09% transaction costs.
Good Practice portfolio: 0.13% - 0.21% a year plus 0.07% - 0.08% transaction costs.
As with all investing, your capital is at risk. The value of your investment portfolio can go down as well as up. You may get back less than you originally invested.