Ongoing Advice Charge
This has been set at 0.5 % per annum for all portfolios i.e. pensions, bonds, offshore, Unit Trust etc.
Example…
Client invests £600,000 into a bespoke investment portfolio, tailor made to suite their requirements and incorporates elements such as CGT, Income Tax, IHT, Income vs Growth etc…
On the first £250,000 the charge is 2%/£5000, on the next £250,000 it is 1.5%/£3750 and on the next £100,000 it would be 1%/£1000. This process of reducing charges on funds invested through Medical Professional Limited results in an overall charge of only 1.625%/£9750. By investing £1 million over time, the overall investment charge would only amount to 1.25%/£12,500.
Charges therefore reduce as you build on your portfolio. This is based on the amount invested initially not on portfolio value and not based on actual transaction value. Once you pass an investment threshold your charges reduce. Every time you add funds to your portfolio, your initial advice charge is re-calculated to ensure you benefit. This also applies to your direct family i.e spouse, children, etc.
Example…
Dr. Smith invests an initial amount of £100,000 in July 2013 and a further £170,000 six months later. He then retires from the NHS and receives a £350,000 lump sum.
On his first investment his charge would be 2%/£2000 on the £100,000, on the second investment 2%/£3000 would be applied to £150,000 and 1.5%/£300 to £20,000. His third investment would attract a charge of 1.5%/£3450 on £230,000 and finally 1%/£1200 on £120,000. His overall initial advice charges would therefore be 1.605%/£9950 on his £620,000 investment. Ongoing advice and service is set at 0.5% per annum. Dr. Smith’s wife then invests £50,000 for her and £10,000 for their children, on which a 1%/£600 charge is applied as they are direct family members and therefore benefit from this progressive reduction in costs.
If you are making monthly contributions, a 2% initial advice charge will apply once to each contribution made.
Transfer Policy
If you decide to transfer funds from other investment companies or product providers, you are likely to have paid initial investment charges or they may take an exit charge from you. This is why you often find that there is a difference between a transfer value and a current value. Our policy is therefore to take this into consideration and discount our initial costs wherever possible. This transfer policy could prove extremely beneficial for clients who make fund transfers via Duke Wealth, as this could also reduce the initial advice charges for all future transactions. As part of our ‘treating customer fairly’ view on charges, we feel it only fair that you should, wherever possible, not pay charges on money that has already been subject to deductions. Duke Wealth does not make a charge for withdrawals or outgoing transfers however other providers may charge.
Stand Alone SIPP’s / Income Withdrawal - Incoming Personal Pension Switches
Due to the complexity of advice and case administration for Self Invested Pension Plans/Trustee Investment Plans, charging is agreed on a case by case basis, but will not exceed a 2% initial advice charge for switches or conversions. The Ongoing Advice Charge remains at 0.5% per annum.
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If you wish to register a complaint against Duke Wealth, please visit the Vision Independent Financial Planning Ltd. website via a link that can be found here.
