Question
Our new IFA of 24 months has put all our ISAs into the 'Nucleus' platform(?). Total value of about £185,000. Roughly what sort of total charges should we be looking at per annum from both Nucleus and the IFAAnswer
I hope your adviser clearly explained the charges you'll incur before you proceeded with the advice. They're compelled to disclose them and any good adviser should spend time running through them to ensure you're comfortable and understand what's going on.
Anyway, Nucleus itself is one of the more transparent fund platforms as it doesn't take platform fees from fund managers, instead charging customers percentage fees - 0.35% a year on balances below £1 million.
It uses low cost institutional versions of funds where possible (which strip out commissions and platform fees from charges), to ensure rock bottom fund charges.
So, for a typical fund you'll be paying a 0.75% annual fund charge, the 0.35% Nucleus annual charge plus whatever your adviser is charging. Funds on Nucleus seldom have initial charges and Nucelus doesn't levy any itself, so the only initial costs would be those charged by your adviser.
Ignoring the adviser for a moment, the typical 1.1% combined fund/Nucleus charge is a bit higher than you'd typically pay via platforms like Alliance Trust Savings on £185,000, but not excessive.
If your adviser charges an ongoing percentage fee then up to 0.5% is probably fair depending on how good they are at selecting funds and the level of service they provide. Although a cap to prevent fees becoming excessive on larger sums would be preferable. Any more than that and I'd be reticent, unless the adviser truly is an investment guru who makes you a mint.
Our new IFA of 24 months has put all our ISAs into the 'Nucleus' platform(?). Total value of about £185,000. Roughly what sort of total charges should we be looking at per annum from both Nucleus and the IFAAnswer
I hope your adviser clearly explained the charges you'll incur before you proceeded with the advice. They're compelled to disclose them and any good adviser should spend time running through them to ensure you're comfortable and understand what's going on.
Anyway, Nucleus itself is one of the more transparent fund platforms as it doesn't take platform fees from fund managers, instead charging customers percentage fees - 0.35% a year on balances below £1 million.
It uses low cost institutional versions of funds where possible (which strip out commissions and platform fees from charges), to ensure rock bottom fund charges.
So, for a typical fund you'll be paying a 0.75% annual fund charge, the 0.35% Nucleus annual charge plus whatever your adviser is charging. Funds on Nucleus seldom have initial charges and Nucelus doesn't levy any itself, so the only initial costs would be those charged by your adviser.
Ignoring the adviser for a moment, the typical 1.1% combined fund/Nucleus charge is a bit higher than you'd typically pay via platforms like Alliance Trust Savings on £185,000, but not excessive.
If your adviser charges an ongoing percentage fee then up to 0.5% is probably fair depending on how good they are at selecting funds and the level of service they provide. Although a cap to prevent fees becoming excessive on larger sums would be preferable. Any more than that and I'd be reticent, unless the adviser truly is an investment guru who makes you a mint.
Read this Q and A at http://www.candidmoney.com/askjustin/790/how-much-does-nucleus-fund-platform-cost
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