What does it cost?
To manage the portfolio, report to you quarterly, and provide weekly research etc we charge a 0.35% fee per annum reducing to 0.25% for amounts over $500,000 with a minimum charge of $175 plus GST per quarter. Most of our competitors charge annual fees of 3x this level.
We are fee based advisers which means we charge a flat transaction fee – usually 0.8% to 1.0% of the sum invested to implement a portfolio recommendation. We pay the stockbrokers whom we use to execute transactions from this fee. If we also use UK/US brokers their fee, which ranges from around 0.125% to 0.25%, is additional. Most of our clients have sums to invest in excess of $500,000 and the implementation fee at this level is 0.8% and over that is negotiable.
We are genuinely independent and are fee based advisers, so our recommendations to clients are completely free of any bias. The products we use pay no commission and none pay any trailing fees. We don’t flog “new issues” or junk bonds to clients just because they pay high commission. We don’t have a “corporate” department with loyalties to companies for whom we act. We don’t have any institutional clients. If fund managers charge high fees or generally act the goat we are not afraid to say so. We answer to our clients only. We are genuinely independent.
Our Standard Fee Schedule is below:
We are genuinely independent and are fee based advisers, so our recommendations to clients are completely free of any bias. The products we use pay no commission and none pay any trailing fees. We don’t flog “new issues” or junk bonds to clients just because they pay high commission. We don’t have a “corporate” department with loyalties to companies for whom we act. We don’t have any institutional clients. If fund managers charge high fees or generally act the goat we are not afraid to say so. We answer to our clients only. We are genuinely independent.
Our Standard Fee Schedule is below:
Establishment/Transaction Fee(Dealing Fee) | Managed portfolios are charged a maximum fee of 1% of the value of each transaction. This is a one-off fee to purchase the securities and is shared with the broker whom we use to execute the transactions. A one-off additional agency fee of 0.10% flat is payable to overseas brokers for securities purchased on Australia, London Stock Exchange and United States, 0.40% applies to Hong Kong and Japan. We are a fee-based adviser and the products we recommend don’t pay commission or trailing fees. We do not have an investment banking division so choose products on their merits not because a company is paying us to sell its shares to our clients. Additionally, we don’t own any fund management businesses and are thus able to remain genuinely objective. |
Monitoring Fee(Ongoing) | The maximum fee charged is 0.35% pa of the total portfolio value for the first $500,000, then 0.25% over $500,000, with a minimum fee of $60 per month (plus GST). We understand that this fee is tax deductible (Box 16 for IR5 or IR6, Box 25 for IR3).
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Custodial Fee – NZX Wealth Technologies(Ongoing) | NZXWT charges 0.125% pa on the portfolio value up to $2 million, and 0.06% pa on amounts above this. For amounts of $10 million and over, this is a flat fee of 0.06% pa. Based on a portfolio value of $1 million, the average fee equates to approximately $1,250 per year. |
Trade Levy | This fee is $7.50 per trade, charged by NZX and applies to NZ investments. |
Further Transactions | This charge is made for subsequent alterations of and additions to the portfolio and is at the same rate as the establishment fee above plus applicable agency fees. Typically turnover after initial set-up averages around 5-10% of the portfolio per year.
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