Investment Management Fees

For both our Discretionary Investment and Advisory Investment services we charge an investment management fee of 0.75% per annum, based on the value of your portfolio.

Unlike much of the industry we levy no charge for your initial investment or for ongoing transactions in your portfolio. This is deliberate – it means we are not incentivised to make changes unless we feel it’s in your best interest to do so.

External Fund Fees

In addition to our 0.75% per annum investment management fee, most external funds we recommend carry an annual management charge, levied by the fund manager. This charge typically ranges between 0.5% and 1.0% per annum.

In-House Funds

Clients receive the ‘B’ shares on our in-house funds (TB Wise Investment, TB Wise Strategic, TB Wise Income and Evenlode Income) which have a 1% annual management charge and are not charged for initial investments.  We take 0.75% of this annual fee. The other 0.25% goes to our fund administrators. This structure ensures that we are not incentivised to recommend our own in-house funds over and above any others, unless we think it is in the best interest of our client.

Deposit Accounts

It is sometimes useful to include bank and building society deposit accounts, national savings accounts and premium bonds on your valuations, and we are happy to advise you on them. However, we do not charge for doing so, and we do not take these holdings into account when managing the asset allocation and risk profile of your portfolio.

Minimum Charges

For each of our investment services, the minimum charge per annum is as follows:

Discretionary Investment – £375 per annum

Advisory Investment – £375 per annum

Designated Investment Portfolios – No minimum fee

In-House Funds – No minimum fee

Minimum charges allow us to offer our range of investment services to all of our clients, while still covering our investment management and administrative expenses.

VAT

We are currently required to charge VAT for our financial planning, discretionary investment and designated portfolio services. We do not currently charge VAT for our advisory investment service, but we believe this situation may change at some point in the future and will let our clients know straight away if it does. VAT does not apply to the management charges on our in-house funds.

The Retail Distribution Review

The RDR is a new piece of legislation, designed in part to remove the conflicts of interest that can arise from advisers receiving commission from product providers. Our fee structure is fully RDR-compliant. We collect our fees from our clients and the rates are agreed in advance.

More on the RDR can be found on the FSA’s website here.