Investment Fees are Reducing!

With inflation currently running at near 9% in the UK, it seems like everything is going up in price. Energy prices, food, petrol and even the cost of mortgages have all risen significantly in the last few months. That’s why it’s great to be able to communicate that for many clients, the investment fees you pay are reducing, 

At First Wealth, we’ve always believed in the importance of keeping costs low. Any pound saved is an extra pound in your pocket. As a result, we have negotiated a reduced charging structure with our main platform provider, Fusion Wealth. As of 1 June 2022, their annual platform charges will be reducing as follows: 

Previous Charges

Tier Level  Charge 
£0 – £350,000  0.25% 
£350,001 – £750,000  0.19% 
£750,001 – £1,500,000  0.15% 
£1,500,001 – £2,000,000  0.09% 
£2,000,001 +  0.05% 

New Charges

Tier Level  Charge 
£0 – £350,000  0.25% 
£350,001 – £1,500,000  0.15% 
£1,500,001 +  0.05% 

 We have also negotiated a small reduction in their Discretionary Fund Management fee, taking this down from 0.096% per annum to 0.09% per annum. 

The good news doesn’t stop there.

Our Evidence Based approach to investing means that we also aim to keep costs as low as possible for the investments that we recommend. This also means selecting fund managers who have a commitment to reducing costs and passing these savings on to clients. 

We’re therefore pleased to announce that Dimensional will also be reducing their running costs for the following funds: 

Fund  Previous Charge  New Charge 
Dimensional Emerging Markets Cost Equity  0.47%  0.45% 
Dimensional Global Targeted Value Fund  0.49%  0.44% 
Dimensional Sustainability Fixed Income  0.29%  0.23% 

So what does that all mean for me?

The table below shows how the annual savings that these reductions will have on different size portfolios: 

Portfolio Size  Annual Saving 
£250,000  £37.50 
£500,000  £135 
£1,000,000  £310 
£2,000,000  £660 
£3,000,000  £810 
£5,000,000  £1,100 

As a firm, we are always looking for ways to reduce the cost of investing for clients where we can and we will continue to do so going forwards.  

This document is marketing material for a retail audience and does not constitute advice or recommendations. Past performance is not a guide to future performance and may not be repeated. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.

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