Transact lowers commission charges to 0.26%

Transact lowers commission charges to 0.26%
Photographer: Chris Ratcliffe/Bloomberg

Transact has reduced its annual commission charges by 0.01 percentage points to 0.26 per cent. 

The move will come into effect in July, following a tweak to the buy commission exemption threshold, which will reduce from £300,000 to £200,000 in March.

Where portfolios are linked, the total value of the group will be used instead of individual values which typically incur more fees, the firm said.

Transact has been regarded highly by investors for providing value for money. Research from Boring Money out yesterday (February 2) put it top on the list for value providing fund houses in the final quarter of last year, as voted for by investors. 

Transact's new annual commission charging structure

Transact's new buy commission charging structure

Jonathan Gunby, Transact’s chief executive, said: “We are pleased to be reducing our charges again, in a measured way, to balance our desire to share the benefits of our scale economies while investing in our service delivery for advisers and clients.”

Transact has around 167,000 clients and those with portfolios valued between £200,000 and £300,000 will benefit from both reductions.

Transact last made changes to pricing back in October. It decided to waive the £20 quarterly wrapper fee for Sipp and personal pensions for children in linked family groups until they reach age 18.

Between October and December 2021, Transact recorded its best first quarter ever for net flows, adding £1.29bn to its funds under direction.

This meant Transact’s FUD, as of the end of last year, had grown to £54.54bn - nearly £10bn more than it had on its platform a year earlier (£44.82bn).