Investment Charges Assessment

Investment Charges Assessment

We are conscious of investment management costs. Many investors often have financial products where the total charges being paid are in excess of 3% per annum. The question to this is “where will the capital growth come from?” Investors are either not informed or do not appreciate the way in which investment products are assembled. One can breakdown an investment product into three areas when it comes to cost:

  1. Adviser costs or commissions,
  2. Product costs,
  3. Fund/investment management costs.

Total Expense Ratios or Ongoing Charges Figure 

A Total Expense Ratio (TER) or Ongoing Charges Figure (OCF) is an indication of total costs per annum. A TER or OCF (charges deducted) for Investment Bonds and "Wrapper" products can range from 1.95% to 3.75% per annum. Many investors do not appreciate the costs being charged, or the charges and fees have simply not been disclosed to them.

The Effect on Investment Performance

High investment charges may appear to be a small sum today, but can compound over time to substantially reduce the returns. The investment cost is relatively immaterial where high returns are attained. However, if the returns are low, for a cautious investor, then total investment costs are a key factor. This does not only apply to your investment portfolios, but also to your pension retirement schemes and any other financial structure you may have, such as a Trust.

How Can We Help?

Our "Asset" investment charge analysis service can accurately assess these costs and confirm the “Total Expenses” being deducted. 

We analyse all investment management fees for pensions, investment bonds, & QROPS. We then assess as to how these charges and fees impede your investment valuations.

You will receive a detailed analysis report showing what these costs are and who they are paid to. We can then offer many and various alternatives at a lower cost.