The custodial firm we use is Transact, a well established specialist in this field, with over £20 billion (Dec 2016) under custodial arrangements in the UK.
|Monthly Average Portfolio(s) Values||Effective Rate||Refund|
|Less than £1m||0.05%||0%|
|£1m and above||0.00%||100%|
When self investors buy an investment, Transact will charge a buy fee of up to 0.05% of the value of that investment. At the end of each month, clients may receive a refund of the buy fee charged in that month if the average total value of their Fund Portfolio (combined with any consolidated Portfolios, where relevant) meets the required values as set out in the table below for the whole month for which they are charging, or if the Portfolio was opened in that month, for the period to the end of the month.
|Single or consolidated portfolio(s) up to £120,000||Investments||Cash|
|Up to £60,000||0.50%||0.45%|
|£60,001 to £120,000||0.30%||0.29%|
|Single or consolidated portfolio(s) over £120,000||Investments||Cash|
|£120,001 to £600,000||0.30%||0.29%|
|£600,001 to £1,200,000||0.20%||0.18%|
|On the remainder||0.075%||0.0675%|
Transacts fee for the custodianship of the portfolio is a percentage of the total value of the Investment Portfolio (combined with any consolidated Portfolios, where relevant) and is set out in the table opposite.
Transact charge a slightly lower rate for cash held on the platform. Lexo portfolios have a modest amount, typically 3%, of the assets held in cash.
A Portfolio (or consolidated Portfolios) will be deemed to be valued at £120,000 or above where its average total value is at least £120,000 for the whole calendar month for which Transact are charging, or if the portfolio was opened in that month, for the period to the end of the month for which Transact are charging.
Transact can consolidate Portfolios with those belonging to family at the same address and/or linked Trust/Corporate Portfolios to maximise the Annual fee rate reduction. Please contact Lexo if you require any further clarification on this.
Annual fee example
If at the end of a 30 day month, the average value of the Portfolio(s) to which the investor(s) is linked is £100,000, with an average Cash value of £10,000 and an average investments value of £90,000, the annual charge payable for that month would be £34.24.
If at the end of a 30 day month, the average value of the Portfolio(s) to which the investor(s) is linked is £300,000, with an average Cash value of £30,000 and an average investments value of £270,000, the annual charge payable for that month would be £79.27.
Investment Wrapper Administration Charges Table
|Investment Wrapper||Quarterly Fee|
|General Investment Account (GIA)||£0|
|Transact Personal Pension Plan||£20|
Finally, some account tax wrappers for example ISAs and Pensions have a quarterly fixed fee. General Investment Accounts do not.
Transact don’t levy an additional administration fee if an investor decides to take an income from any wrapper. Where an investor holds more than one wrapper of the same type, then they will only be charged one wrapper fee per wrapper type each quarter.