Our Fee Philosophy
When deciding our fee structure, we wanted to be able to return the trust shown in us by our clients; we wanted to be able to show we were consistently adding value and we wanted to be totally transparent.
Most clients use our Wealth Management Solution, an on-going service that includes portfolio recommendations, tax and estate planning and more general financial planning. The minimum investment is £300,000.
There is no up-front charge for this service, just an ongoing fee as detailed below. This basis of charging means we are better aligned with our clients - we both need the relationship to work for it to be profitable. If a client feels we are no longer adding value they can terminate the arrangement by simply giving one month's notice - there are no hidden exit or termination fees.
The lack of an initial fee combined with our use of low-cost passive funds and finely-priced platforms means the total cost of investing with Chadwicks is exceptionally competitive.
For clients who do not want an ongoing relationship or who are looking for advice around a specific issue we will quote a fixed fee before starting work.
Occasionally, we charge our hourly rate.
- Initial portfolio set-up fee - nil
- Ongoing annual fee
|Portfolio value||Annual fee (payable monthly)|
|Less than £300,000||£3,000 fixed fee|
|£300,000 - £1m||1% of assets under advice|
|£1m - £2m||0.5% of assets under advice|
|£2m +||0.3% of assets under advice|
The fee is payable on the value of each tranche, so a client with a portfolio of £1.5m would pay £12,500 p.a.
- Initial financial planning report
- Individually tailored portfolio
- Fund recommendations
- Basic tax and trust advice and recommendations
- Setting up portfolio, including realising or re-registering existing investments
- Ongoing portfolio monitoring, valuations and recommendations
- Provision of tax statements where appropriate
- Meetings as required
- Annual update report
And what’s not included:
- Corporate advice - we will usually quote a fixed fee for a specific project
- Flexible Access Drawdown – an additional fee of 1% of pension fund value is made on entry to FAD
- SIPP Property purchase – charged at our hourly rate
- Complex tax and trust advice and recommendations – charged at our hourly rate
- Implementation of non-investment recommendations (i.e. protection policies)
Transfers from defined benefit schemes - reflecting the complex and irreversible nature of advice in this area we use a third party specialist firm to carry out the analysis on our behalf. We pass on their fees directly.
For clients who do not need an ongoing financial and investment advice we offer a financial planning service. This gives you a robust plan, setting out your options, with our recommendations, supported by a cashflow model that helps you see the likely effects of your decisions. Our financial plans start at £1,500.
|Chartered Wealth Manager||£200/hour|
|Financial Planner/Wealth Manager||£150/hour|
How do our fees compare?
The FCA reports that financial advisers charge an average of 2.4% of the amount invested for initial advice - Chadwicks charges nothing for clients investing at least £300,000. Our ongoing fee for portfolios under £1mn is slightly higher than the average of 0.8%, but the total ongoing cost of investing is typically around 20% lower than the average. In short, we are well priced. You could get cheaper advice but we believe you will not get better value.