Fees and charges
Estimated annual costs for a portfolio we manage on a discretionary basis
The fee rate for the discretionary investment service is determined by your aggregate contributions into your Account less any withdrawals (“Total Invested Amount”).
If you are the Lead Investor or Network member, then the Total Invested Amount will be calculated based on the aggregate value of contributions less withdrawals for all clients in the Network.
What our discretionary fee covers
• Discretionary investment management • Trading commissions • Custody, safe keeping and administration of your investments • Reporting and online account service • Any applicable VAT
For Socially Responsible Investment (SRI) portfolios, higher underlying fund charges and trading costs add between 0.05% and 0.15% to the total costs of investing.
Underlying fund charges
The underlying fund charges are an estimate of the aggregate charges from funds and ETFs held in portfolios. We endeavour to keep the cost of investing to a minimum and costs are always considered as part of our instrument selection process. The underlying fund charges include fund management charges and other charges for administration and custody.
Annual costs of trading
Other costs of investing are made up of the frictional costs of trading within the portfolios. The ongoing costs of trading relate to the spread between purchase and sale prices of funds and ETFs that are bought and sold on your behalf by Netwealth on an ongoing basis, and to the equivalent frictional costs of trades taking place within the funds themselves.
The one-off cost of investing is the effect of the difference between the purchase price and the “mid-market” price in the market for each fund when your initial investment is made.
Pension charges
The Netwealth Personal Pension is administered by Intelligent Money, who act as the pension trustees. If you open a Netwealth Personal Pension you will separately contract with Intelligent Money to provide the pension wrapper. The table here details the Intelligent Money charges which are applicable to a Netwealth Personal Pension.
Intelligent Money (Pension Provider) Charges
Charge
Set-up Fee
£0
Annual Charge
£180
Single and Regular Contributions
Income Drawdown Set-up Charge
£90
Income Drawdown Annual Charge
£108
Calculation of Pension Commencement Lump Sum (Tax Free Cash)
Calculation of Partial Uncrystallised Fund Pension Lump Sum
£270
Calculation of Full Uncrystallised Fund Pension Lump Sum
£360
Capped Income Drawdown Annual Review
Annuity Purchase Charge
Cash Transfers Out
In-Specie Transfers In
In-Specie Transfers Out
£180 per hour
Additional charges may be applicable for non-standard transactions. Full details of all potential charges can be found in the Fee Schedule section of the Netwealth Personal Pension Terms & Conditions.
All charges shown are inclusive of VAT,
The table below lays out other charges that will be deducted from your account, depending on the services provided to you:
Netwealth Charges
Cash Withdrawal via CHAPS
£25
Cash Withdrawal via BACS
Cash Transfer Charge (GIA, ISA, JISA)
In Specie Transfer Charge (GIA, ISA, JISA)
£20
Account Closure
Change of Portfolio Risk Level*
0.12% of Portfolio market value
* We think that investment objectives are best achieved through maintaining a long-term strategic asset allocation. If your objectives or preferences change, you are able to change the Risk Level on your portfolio a maximum of two times in a twelve-month period free of charges. Any changes subsequent to that will be chargeable at 0.12% of the value of the investments in order to cover our additional trading costs.
Advice fees
The table below lays out the fees that are applicable if you elect to receive advice relating to your investments from a qualified Netwealth adviser. Fees quoted are inclusive of any applicable VAT.
Description
Fee
One-off advice
£200 per hour
Ongoing Advice
0.35% per annum on the value of your account, subject to a minimum of £1,000 per annum
The number of hours a piece of advice work requires will depend on the specific nature and circumstances of the work undertaken. By way of a generic example, a standard review for a client approaching retirement and looking for advice on meeting their retirement income goals, would typically take 8-12 hours costing £1,600-£2,400, inclusive of any applicable VAT.
Your Netwealth adviser will provide you with an estimate of the amount of time required for your specific needs in advance of any agreement to proceed.
Advice packages
For certain common advice needs, we offer fixed-price advice packages. Fees quoted are inclusive of any applicable VAT:
Pension contributions - £400 - Using pension annual allowances are vital to optimise your retirement plans. However, many clients either pay too little into their pensions or, due to recent rule changes, pay in more than is optimal. After analysing your income and your recent pension contributions, in this package we advise you how to make further pension contributions in a tax-efficient way. This advice takes into account, where applicable, your tapered annual allowance and your ability to carry forward unused pension allowances from previous tax years.
Drawing down - £1,200 - Drawing down upon your pension is typically done to raise funds for retirement. However, there are many things to consider before doing this. In this advice package we will help you to consider your options when drawing down upon your Netwealth pension, and how you should manage your pension once in drawdown. Key considerations include how much income can be sustainably drawn for the length of your retirement, whether tax-free cash should be withdrawn, and if so, what should be done with it. We also consider whether annuities or UFPLS should be opted for instead of entering drawdown in the first place. Finally, this advice package lets clients know how much tax will be due if drawing down, how to optimise this position and how the residual pension should be invested to best meet your needs in retirement.
