Charges

For business held on the Aegon Investment Platform (for direct business and Funds Network please contact us)

Introduction

Since new regulation in April 2014 the intermediary, the platform and the fund manager must now levy their charges separately. This page sets out these charges in respect of new investments arranged by Financial Discounts Direct through the Cofunds Investment Platform. Existing investments will be move to these new charges by 6th April 2016 at the latest.

Financial Discounts Direct Service Charge

This annual Service Charge replaces the trail commission that we would previously have received. This charge is taken monthly and is levied on all of the new commission-free (unbundled) funds that you hold. The charge is not levied on any commission-included (bundled) funds that you still hold.

Our charge is tiered and ranges from 0.45% to 0.25% of the value of your investments. (See the table below for full details).

The new charges represents a saving for most clients of between 10% and 20% compared with the historic trail commission. These savings are available to both new and existing investors.

Tier    Cofunds Portfolio Value   Service Charge
1 First £50,000   0.45%
2 Next £100,000   0.40%
3 Next £100,000   0.35%
4 Over £250,000   0.25%

 

Example 1: Example 2:
Client portfolio of £75,000 Client portfolio of £175,000
First £50,000 @ 0.45% = £225 First £50,000 @ 0.45% = £225
Next £25,000 @ 0.40% = £100 Next £100,000 @ 0.40% = £400
  Next £25,000 @ 0.35% = £87.50
   
Total annual Service Charge £325
at an average of 0.43%
Total annual Service Charge £712.50
at an average of 0.41%

Aegon Platform Charge

Aegon provide a wide range of services that benefit customers investing in Funds. Their services complement those provided to you by Financial Discounts Direct.

Aegon make an annual Platform Charge for their services. This charge is taken monthly and is levied on all of the new commission-free (unbundled) funds that you hold. The charge is not levied on any commission-included (bundled) funds that you still hold.

Aegon is tiered and ranges from 0.23% to 0.15% of the value of your investments. (See the table below for full details).

As one of the UK's leading discount brokers, with over 18 years experience, we have been able to negotiate preferential terms for Financial Discounts Direct customers. These rates represent a saving of 8% compared with the old bundled charges and over 20% compared to Cofunds standard Platform Charge (based on the standard Aegon Platform Charge of 0.29% for portfolios up to £100,000).

Tier Aegon Portfolio Value   Platform Charge
1 First £500,000   0.23%
2 Next £500,000   0.20%
3 Over £1 million   0.15%

Full details of Aegon Platform Charge and how it is calculated can be found in the Aegon Platform Key Information Document and Terms & Conditions which can be downloaded here.

How the Service and Platform Charges are collected

Aegon will collect both their Platform Charge and our Service Charge from your Aegon GIA Cash Facility each month.

At the beginning of each month Aegon will work out the charges for the previous month, using the daily balance of your portfolio.

If there is enough money in your Aegon GIA Cash Facility, Aegon will ring-fence their Platform Charge and our Service Charge.  If there isn't enough in your Aegon GIA Cash Facility they will sell a number of units in the largest commission free fund you hold.  If you do not want these charges to be taken in this way then you can keep enough monies into your Aegon GIA Cash Facility to cover any charges.

The deduction of the Platform Charge and our Service Charge will appear on your statements and transaction history.

Fund Manager Charges

As the fund managers no longer have to pay the platform and intermediary, they have reduced the charges on their funds. All of the funds available via the Aegon Platform are on this lower-charge basis (called 'commission-free' or 'clean' Funds).

There are two main types of charge on investment funds - The initial charge and the annual management charge.

All funds available via the Aegon Platform have no initial charge.

The annual management charge will vary from fund to fund but typically will be between 0.5% and 0.75%, compared with the previous 1% to 1.50%.

The reduced Fund Manager Fee will still be reflected in the calculation of the unit price as it was previously.

You can get full details of any available fund including the charges, the Key Investor Information Document (KIID) and a fund factsheet in our Fund Hub section