Transactional

Proposition

Transactional Proposition Costs & Charges Explained

Example

In the example below a client has agreed to transfer an existing pension policy valued at £100,000.000 to a new plan with a transactional proposition service in July 2020. The client has agreed to an annual review at a cost of £360.00 per annum.

Below are the initial and on-going service costs. The tables under the heading Aggregated costs and charges as at 1/7/2020 detail the full cost of the advice, on-going service, platform charges, fund charges and transactional charges of the underlying funds in the first year of investment.

A Risk Level 4 (Moderate) Portfolio has been used to determine the fund costs with an annual growth assumption of 4.90%.

Initial Fee

£2,000.00 fee for initial planning and implementation.

On-Going Fee

£360.00 annual fee which is taken annually from your plan.

Reviews and Updates

Annual review via PWS Personal Finance Portal.

No regular updates.

Investment portfolio fund rebalanced at annual portal review.

Aggregated costs and charges as at 1/7/2020

We want you to understand the various costs and charges that are associated with our services and recommended solutions, along with the effect that these may have on what your plans return to you. In the table below we have provided some information on all costs and charges that could apply over the next twelve months. We have also included an indication on the overall effect of these costs and charges on returns over this period.

INITIAL INVESTMENT/TRANSFER

£100,000.00

Total Costs & Charges in Year 1

£3,183.00

3.18%

The table below details the charges applying:

Breaks down individual cost charges in monetary and percentage terms.
COSTS & CHARGES

COST (£)

RATE (%)

Initial Adviser Charge

£2,000.00

2.00%

On-going Adviser Charge

£360.00

0.36%

On-going Platform Charge

£363.00

0.34%

On-going costs of the underlying funds within a plan(s)

£421.00

0.42%

On-going transaction costs of the underlying funds

£59.00

0.06%

The table below shows the cumulative effect of costs on return:

Assumed growth rate before charges of 4.90% per annum.
ASSUMPTIONS
What you might get back if there were no charges at all
What you might get back after charges
Difference

1 YEAR

£104,900.00

£101,717.00

-£3,183.00

5 YEARS

N/A

N/A

N/A

12 + 7 =