Your Industry  

Platform watch: Transact vs FundsNetwork

Transact FUM: £12bn All asset purchases charged at 0.2 per cent of the value of asset. (50 per cent discount for portfolios of £1m or more, 100 per cent discount for portfolios in excess than £2m.) Annual commissions: Investment assets – maximum 0.50 per cent a year. Cash – maximum 0.45 per cent a year. Wrapper Charges: General investment account – Establishment fee: £0; yearly payment: £0. Sipp – Establishment fee: £0; yearly payment: £20 a quarter. Isa – Establishment fee: £0; yearly payment: £3.00 a quarter. Offshore Bond – Establishment fee: £150; yearly payment: £60 a quarter. Onshore Bond – Establishment fee: £100; yearly payment: £18 a quarter.

FundsNetwork
FUM: £38.4bn

Account fee: £45 a year, no initial buying or switching charges.

Alternatively, clients can stay with an alternative initial and switch charging structure, and are typically charged a fee of 0.5 per cent when investing new money. For example, on a £100,000 lump sum investment where a 0.5 per cent initial charge is made, the client would incur a cost of £500.

Article continues after advert

Additionally, a client is normally charged 0.25 per cent when switching between funds. For a £100,000 switch deal, a client would incur a £250 charge.

IFA verdict: Nick Lincoln, Values To Vision Financial Planning, Hertfordshire

“I first started using FundsNetwork around 2002. It was the first platform I used and quite a novel concept at the time, however I have since graduated to using Transact, with FundsNetwork now mainly holding legacy business. I find Transact and its passive style of investing a good fit with my business. Without it my costs would go through the roof as I would have to set up multiple tax wrappers, so it creates an efficient way of working.”