At Capital, we dare to be different. An award-winning Chartered Financial Planning Firm. Providing outstanding financial planning, a choice of investment portfolios, and a partner for life. A Plan, a Portfolio, and a Partner. Underpinned by an investment approach that produces results. Delivered by experts. At a fee we believe is about 30% lower than the market average. It is likely that you already pay several monthly subscriptions; from your home broadband, digital TV, and music streaming services, to name a few. Ultimately, the more you use, the more you pay. It’s simple. It’s straightforward, it’s clear and most importantly, it’s fair. Your financial planning service should be no different
Most financial advisers and wealth managers charge a fee based upon the percentage of the assets you invest with them. Fees like these can be difficult to calculate and even more challenging to convert back into pounds. The more you invest, the more it costs, irrespective of whether the service or value you receive remains the same. Percentage charging can seriously erode your wealth and prospects. The focus is on your money rather than your life.
Your circumstances are unique, and we believe the service and fee you pay should be as well. Your flat fee is based on the services you require and how complex your situation is. It’s a flat, annual subscription, which is agreed with you clearly each year in pounds. Our core financial planning services will always be available to you, but as your life evolves you are able to increase or decrease your additional services. It’s wonderful to be in control.
Every Capital client will receive our core services. These ensure you are on track to reach your future goals and aspirations. You’ll know where you are heading, and you have your personal financial roadmap to get you there.
Your money will be expertly invested to achieve secure and optimum returns. In addition, you have your own partner and a team of financial planning experts who are available for you to contact at any time. Your team is here to answer any questions that you have, and our core service offers you a meeting on a yearly basis to monitor the progress of your investments and make any amendments.
Subscription fees start at £500 a month. For clients who have extremely complex and challenging circumstances and significant amounts of wealth, the fee can be £7,000 a month.
Your own financial planning team
Annual planning meeting
Your personal financial roadmap
A personal investment portfolio
The Annual ISA Service
The Professional Wealth Network
There are additional services designed to match your unique circumstances. You have the flexibility to remove services when you feel they are no longer needed, and additional services can be added later if you so wish. Your flat fee will flex up and down with these changes. You have the choice; you are in control. It’s a subscription service based on clarity and fairness. The Capital fee is readjusted every three years in line with the Consumer Price Index (CPI).
Fees are based are on you, and your life. Not on how much money you want to invest. This makes Capital different from most financial advisers and wealth managers in the UK.
Before your fee subscription service can be designed for you, we need to find out more about you. This will ensure that you get true value for money. So, we created VECTOR; our pricing model, to remove the one-size-fits-all approach that really fits nobody. No matter what your circumstances – large sums of money to invest, a host of jumbled assets, or highly complex affairs – the advice fee will be tailored to your requirements.
Many financial services firms charge an initial fee which can be up to 3% of the amount you invest. Based on £1 million this could cost £30,000. We do things differently because each person’s situation is different. If you are investing cash and have no investments to transfer over, there is usually no initial fee.
If you do have a range of investments, our fee is based on the work and the complexity. For example, if you had fewer than 10 assets, such as ISA, pensions, etc, our initial fee is £5,000. The fee is collected directly from your investment portfolio and there is no VAT.
Comparing a percentage investment advice fee to a flat fee.
Taking a £1 million lump sum investment, invested for 30 years at a total return of 7.6% per annum produces interesting results as the table below shows.
|Investment lump sum at outset||£1,000,000|
|Annual investment return||7.60%|
|Term in years||30|
|Asset based fee as a percentage per year||1.0%|
|Flat fee per year||£10,000|
|Increase to the flat fee every three years||6.1%|
|Asset based future value||£6,677,583|
|Flat fee future value||£7,699,269|
|Financial advantage of the flat fee||£1,021,686|
The charges gap is equal to the original sum invested. It pays to pay attention
Discover how much money you could save by switching to a flat fee by using our calculator.
See some real-life examples
If you invest with us, aside from the Capital flat subscription fee, there are two other associated costs.
Your investment funds will, in most instances be held on a third-party secure technology platform. This is for your convenience and practicality. You can access the platform 24/7, via the internet, from anywhere in the world. The technology providers charge for their service, currently expressed as a percentage of the value of your investment. This is typically between 0.10% and 0.25%. Capital converts the percentage charge into pounds for your convenience. For example, based on a £1m investment the yearly wrap charge will be £1,145.
Capital investment portfolios are managed by a select range of fund managers. These managers charge for their services. This is typically between 0.20% and 0.25% of the value of your investment. They are disclosed as the Ongoing Charge Figure (OCF) in the KIID (Key Investor Information Document). Capital converts the percentage charge into pounds for your convenience. The combined fee, in pounds, will be shared with you before you commit to anything. For example, based on a £1m investment the yearly fund manager charge will be £2,206.
We only work with clients where we feel we can add real value. If you’re ever unhappy about the service we provide, we’ll refund the balance of your annual fee.
Selecting a reputable financial planning firm is more important than you think. Research by Vanguard, one of the largest investment companies in the world, has shown that choosing a good financial planning firm is estimated to save you 3% a year on average.
An award-winning Chartered financial planning firm like Capital, acting as your behavioural coach and partner, investing in low-cost funds, with regular rebalancing of your asset mix, should add a real financial advantage, even after costs and fees have been deducted.
If you are uncertain what the true cost of investing is across your own investments, and you want an expert impartial opinion, contact us today.