The secret the investment industry does not want to share

There has been much comment in the press recently about the effect of fees and charges on investments and pension schemes. Research commissioned by the Treasury indicates that undeclared and hidden charges more than double the publicised Annual Management Charge (AMC). A fairly standard AMC of 1.5%, when combined with these hidden costs, results in a staggering 3.2% per annum charge for the running of a typical UK investment fund.

To put it another way, over half – that’s right, more than half* – of any potential growth achieved over 5 years is swallowed up in charges. Even if there is no growth over that period, 3.2% will still be taken from the average UK investment fund.

At Chamberlain Wealth Management we believe in total transparency of fees and charges and in keeping these costs down to a bare minimum.

*6% growth on £100,000 produces growth after 5 years of £33,823 before charges. When all fund management charges are taken into account this reduces to £15,646, a loss of 53.74% of the underlying growth.

29th December 2011