Our charges

Charges

Charges are an important part of the relationship between our customers and the services that we provide. Willis Owen will always endeavour to be as transparent as possible with its charging structures and provide easy access to the rates that are applicable to individual investors.

When you invest in funds there are three types of charges which you may see quoted, with the investment charges figure being the most comprehensive:

Annual Management Charge (AMC) - the internal costs of running the fund the AMC typically comprises the investment management fee plus any other charges for its own services, such as administration or marketing. It usually excludes any fees or charges paid to 3rd parties.

The average AMC is around 0.75% in most actively managed funds but can vary depending on what is included. A few providers now quote the same figure for AMC and OCF.

Ongoing Charges Figure (OCF) - incorporates the AMC, as well as a number of additional costs and expenses, that are taken directly out of the fund in the previous 12 month accounting period to its financial year end. It includes 3rd party costs such as: audit fees; custody fees; financing costs; custodian fees; shareholder reporting costs; regulatory fees; director’s fees (where applicable) and bank charges.

Research costs may also become part of on-going costs unless the Fund Provider states they will absorb them into their own operating costs. The OCF excludes: performance fees (where applicable) and portfolio transaction costs, except in the case of other collective investments held (for example, by a multi-manager fund).

Investment charges - is presented in the ex-ante costs document, as well as in your annual statements. This comprises the OCF plus all costs related to transactions. It also includes incidental costs which are primarily performance fees. It captures all transaction costs, incurred as a result of the acquisition and disposal of investments. This covers: broker charges, mark- ups included in the transaction price, stamp duty, and foreign exchange costs.

Transactions costs can be divided into explicit and implicit costs. Explicit costs relate to the tax and commission charges added to the transaction settlement amount. These costs can be clearly identified and quantified. Implicit costs, also called slippage costs, are more complex calculations which work out the difference between the price when a trade is placed and the price at which the trade ultimately takes place.

Over and above the charges related specifically to the investments you hold, you will also pay a service fee as follows:

  1. For investments held on the Aegon platform, you will pay a service to of 0.23% to Aegon as well as a fee of 0.5% to Willis Owen,
  2. For existing investments that were previously arranged by Willis Owen directly with fund providers, Willis Owen’s service fee is 0.5% and is collected through the Annual Management Charge (see below for further details).
  3. For investments held on the Willis Owen Platform, service fees are dependent on the amount invested and are set out in further detail below:

Service fee ISA/GIA/SIPP

Tier
ISA
GIA
SIPP
£0 - £50,000
0.40%
0.40%
0.60%
£50,001 - £100,000
0.30%
0.30%
0.40%
£100,001 - £250,000
0.20%
0.20%
0.25%
£250,000 +
0.15%
0.15%
0.15%

These costs are for each ‘tier’ of your overall Account. So, as an example on the Willis Owen platform for ISA or GIA or combined ISA and GIA, for the first £50,000 invested you pay 0.40%, which equates to £200 per annum, then for the next £50,000 you pay 0.30%, which equates to £150 per annum and so on.

The first £50,000 invested in a SIPP, you pay 0.60%, which equates to £300 per annum, and then for the next £50,000 you pay 0.40%, which equates to £200 per annum and so on.

Likewise, if you invested £120,000 split equally between an ISA and a SIPP you would pay 0.33% for the ISA which equates to £198 per annum and 0.46% for the SIPP which equates to £276.00 per annum. The blended rate takes into account your total portfolio value across your ISA, GIA or SIPP.

Service fee JISA

Tier
Junior ISA
£0 - £50,000
0.40%
£50,001 - £100,000
0.30%
£100,001 - £250,000
0.20%
£250,000 +
0.15%

These costs are for each ‘tier’ of your Junior ISA only.

Tier and fee calculations are based on funds, share, investment trusts, ETFs and cash balances.

Our service fee covers:

  • Fund research – supplied by selected third party research companies
  • Quality client service – you can speak personally to experienced and friendly staff on the telephone, which are based in the UK
  • Online tools (including a detailed report of all your investments) and guidance to help you make investments decisions
  • The ability to manage your account online
  • Our highly acclaimed ISA Guide and market commentary
  • Email newsletter and fund updates.

If you do not agree to the charging structure(s) applied by Willis Owen or its partners then services will be terminated at the company’s discretion.

There is currently no additional fee for using income drawdown under our SIPP product.

How we collect our fee

All new investments are arranged on a fee basis. For some, pre-existing investments arranged by Willis Owen in the past, we may be receive commission. Where an investment was arranged on a commission basis, we are paid commission by the product provider and we will not apply any other charge in respect of that investment. These charges will usually have been built into the Annual Management Charge of your investment.

For investments arranged on a fee basis, our fees will be deducted by the platform or product provider from your cash account, or by selling part of your investment(s), and paid to us directly. These charges are usually calculated daily, but levied on a monthly basis.

We may change the amount of our fees or the method of their collection from time to time. We will only change the amount of our fees for the following reasons:

  • To reflect changes in the costs and charges we incur or expect to incur in providing our services to you;
  • To take account of increases in the rates of inflation, taxes or interest;
  • To reflect current or future changes in law, FCA rules and regulations, or decisions of the Financial Ombudsman Service;
  • To meet regulatory requirements or industry guidance or best practice;
  • To reflect changes in market practice or conditions.

We will ensure that any change in the level of our fees is reasonable and proportionate and will tell you about it as soon as we can. We will seek to provide no less than fourteen business days’ notice of any change which may be detrimental to you although where this is not practicable, we may change our charges without giving you advance notice.

A full list and summary of all charges can be found on the Willis Owen website at: www.willisowen.co.uk

Commission-included fund charges

For investments arranged on a commission basis, Willis Owen may receive an annual commission from a product provider which varies from 0.1%-1% of the value of your investment, depending upon your fund choice. These charges are collected through the fund manager’s Annual Management Charge and are passed on to Willis Owen. For example, if your fund value averages £4,000 over a one year period and the funds in which you invest generate an average commission to Willis Owen of 0.5%, Willis Owen will typically receive a commission of £20.00 over the year.

Commission-excluded fund or clean charges

Where investments are arranged on a fee basis, our service fee is collected separately to the fund manager’s Annual Management Charge.