Ongoing Portfolio Management
At Accudo Investments we offer three basic levels of service: Asset Builder Service, Wealth Management Service and Gold Service.
This is intended for portfolios in their “embryo” stage. Typical value is up to £100,000 and the emphasis is on building the investments towards the Wealth Management Service level by using cost efficient quality usually passive funds. The service offers initial portfolio construction and ongoing monitoring of the investments with actions taken when needed as well as access to our advice in other financial matters when requested. The initial charge taken at the inception of the portfolio is 3% of the investment value and our ongoing management charge is 0.75% per annum of the portfolio value applied on a monthly basis i.e. 1/12 of the 0.75% of the portfolio value. The charges are levied on the investments and administered by the investment platform used to accommodate the portfolio.
Wealth Management Service:
This level of service is offered when the portfolio value exceeds £100,000. The main additional feature is a full portfolio review on an annual basis. This involves a portfolio “X-ray” to establish the performance of each constituent fund compared to peer sector averages as well as the asset class balance of the portfolio. Funds that have demonstrated material under-performance are identified and switch recommendations are made on a performance and future performance potential basis. This “weeds out” the under-performing funds, thus improving prospects for future growth.
The portfolio is also analysed in terms of the asset class make up and any imbalances are addressed and further switches recommended. This ensures that the portfolio is restored to the asset class equilibrium appropriate for the client’s chosen attitude to investment risk profile.
Reviews are conducted face to face, over the telephone or via video conferencing depending on the client’s preference, availability and location.
The initial charge associated with this level of service is lowered to 2% of the new investment and the ongoing charges remain 0.75% pa of the portfolio value.
This service level offers two full reviews per annum conducted on a 6 monthly basis. It is intended for larger portfolios where added attention and monitoring is needed in all aspects of a client’s affairs, including the portfolio management, ongoing income planning, and ongoing tax planning and it is usually offered to portfolios over £1, 000,000 in value or significantly higher than £500,000 on a client’s request.
The initial charge is lowered further to 1% of the new investment and the ongoing management charge is tiered: first £500,000 of the portfolio carries 1% pa OMC and the rest of the portfolio carries a 0.5% pa OMC. This, in reality, means that any portfolio higher than £1,000,000 will in effect be paying an AMC lower than the standard 0.75% pa but will receive double the management input and the cost will further diminish as the portfolio grows.