We provide an initial consultation at no charge to you, which provides an opportunity for us to get to know each other and assess whether we can work together
The cost of our initial service will be based on the cost of time spent on your affairs. The hourly rates charged reflect the knowledge, skill and experience of the person involved and are as follows:
•Director - £500 per hour
•Other qualified financial adviser - £250 per hour
•Paraplanner/Technical Support - £175 per hour
•Other business support staff - £100 per hour
For advice on new money invested, we will make an initial charge of the amount invested which will be confirmed to you prior to any investments taking place.
Before commencing work, we will provide you with an estimate of the likely fee to be incurred. If this figure is likely to increase, we will contact you again before issuing the relevant suitability report.
In order to ensure fairness and equity to our clients we will use a fixed percentage charging structure for our ongoing service for portfolios of at least £400,000, which will be 0.6% per annum of monies under advice with the Company.
We are happy to receive enquiries from prospective clients and may consider the management of portfolios under £400,000, which will be charged at a higher rate than 0.6% per annum.
We have integrated into our charging structure our performance-related fee which is only charged if we exceed the returns of a pre-agreed benchmark. The performance-related fee is equal to 10% per annum (including VAT) of any gains achieved on your portfolio in excess of a benchmark agreed between us. The performance fee is payable on an annual basis and in assessing performance against the benchmark, we will make adjustments for any new monies added to the portfolio as well as withdrawals you have made so that the true underlying performance is considered against the benchmark.
From the commencement of business in 2000 as Mitchell Neale Investment Services, we have always operated on a fee basis in the belief that a lot of financial advice was inappropriately motivated by the availability of high levels of commissions which were payable to financial advisers. This often influenced advisers to recommend products that were not the most suitable for their clients.
In order to reduce initial charges, remove the bias away from commission based products and to provide a more equitable method of remuneration, we prefer to work on a fee and performance related fee basis.
Minimum Investment Portfolio:
£400,000 for Director consultation;
At outset we will agree a target investment return appropriate to your attitude to risk. The target will provide you with a realistic expectation of future long term investment returns adjusted for inflation, and therefore assist us in the financial planning process by providing cash flow forecasts around which planning decisions can be made. Where future alterations to your portfolio are made we will not make any charges as our objective will be to exceed the agreed target. Consequently our business is service and not sales orientated.
We will normally target a return in excess of inflation and the degree to which we will be required to exceed inflation will be determined by your attitude to volatility. We are happy to consider alternative targets such as your existing portfolio, property, the UK stock market or any other target which is appropriate to the level of volatility that you are prepared to accept.