Investment service costs

Investment service costs

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boyse7en

Original Poster:

6,738 posts

166 months

Thursday 1st November 2018
quotequote all
I've got a workplace pension. Very standard one, with employer paying in minimum legal requirement. They keep sending stuff about moving my other investments over to them, and as I have got an ISA doing nothing very much I thought it would be worth looking into.

On the pension company's website it says "Our pricing is completely clear and transparent, see how much you’ll pay for a Fully-Managed Investment Portfolio. Service Costs: 0.40%. Product Costs: Typically 0.76%"
And they then provide a calculator to work out how much a year their fees will be.

If i were to invest £10,000, it calculates their fees as £116 per year or £9.67 per month

How is that anywhere near 0.4%? or even 0.76%?

I don't understand how they make it that amount.
I'm sure it is me being dim, but how do you work it out?

boyse7en

Original Poster:

6,738 posts

166 months

Thursday 1st November 2018
quotequote all
Sarnie said:
£10,000 x 1.16% (0.76% + 0.40%) = £116
Doh! Yep, me being thick

boyse7en

Original Poster:

6,738 posts

166 months

Friday 16th November 2018
quotequote all
JulianPH said:
Who is the pension provider? At those costs the scheme does not remotely sound as if it is auto-enrolment compliant (max charges the equivalent of 0.75% a year).
They are called True Potential Investor.
I've never heard of them except that they are the company my employer has appointed to run the pension scheme