There are two costs and charges to be aware of when investing with Wealthify – a Wealthify management fee and investment costs. Investment costs include fund charges (taken directly by the fund provider) and market spread.
Wealthify Management fee
Wealthify charges a simple annual fee, payable monthly based on the value of your investments. This fee covers everything we do, including setting up your account, looking after your money and optimising your investments, which is known as rebalancing’.
We invest your money in carefully selected, low-cost investment funds from providers such as Vanguard and Blackrock. These incur a small annual charge, which is taken at source by the fund provider.
These costs are incurred as a result of the process of buying and selling investments and as such must be considered as part of the overall cost of investing. Learn more about market spread here.
To get an idea of what your fee would be, why not check out our Fee Calculator.
Our annual management fee of 0.6% covers everything we do – from our experts building and managing your Plan, buying and selling on your behalf, and rebalancing, through to our customer care team being on hand to solve issues or answer any questions.
In addition to this, we offer:
There are some other costs that may apply, which is normal for investments, but we do our best to keep these low. These costs, including fund charges, are taken directly by the fund provider and market spread – which is the difference between the price we buy and sell investments.
Market spread is not strictly a charge, but rather a consequence of the investing process. Nevertheless, it does slightly reduce your returns, and therefore must be considered as part of the overall cost of investing.
Market spreads are incurred because of the difference between the price at which we can buy an investment and the price at which we can sell it. Say, for example, during a normal trading day, shares in ‘Company A’ are available to buy at 500 pence. At that same point, we might only be able to sell at 498 pence. This difference, whilst sometimes small, can affect the overall value of your investments over time and is the reason you must take market spread into account.
Since we don’t deduct them directly, and due to their nature, we are unable to include market spread in the annual management fee which covers our day-to-day management of your investment plans.
Wealthify Management fee: Our management fees are quoted on an annual basis, to make them clearer for you, but we take them on a monthly basis, directly from your Wealthify account. You can see exactly what fee you pay each month by looking in your recent transactions list on your dashboard.
Investment costs: These include fund charges, taken directly by the fund provider at source, and market spread.
Fund charges are taken at source by the companies (like Blackrock, Fidelity and Legal & General) who manage the funds into which we invest your money. Fund charges vary between funds and providers, so we quote them to you as an average annual charge. Because they are taken at source, they are not listed in your recent transactions, but they are a part of the overall annual cost of your investing.
Market spread is not actually taken directly from your account by us, or by your fund providers. In simple terms, it is a consequence of the investing process and is incurred each time we buy and sell investments on your behalf. It must therefore be considered as part of the overall annual cost of investing.
We charge a simple annual fee which covers all costs and charges associated with investing and managing your money. Fees are quoted annually but charged monthly, calculated as 1/12 of your annual fee.
The amount you pay will be based on the total value of your investments across the month. This means you’ll only be charged for the days of the month that money is held in your account.
Wealthify uses technology to keep costs low. Our algorithms automate some of the investment process, like market monitoring and asset selection, which means we don’t need to employ expensive fund managers to do it. Also, we use mostly passive investment funds which are some of the lowest cost funds available, and we’re fully online, so we don’t spend time on costly one-to-one client meetings. We pass all of these savings straight back to our customers, by charging one simple flat rate fee.
Yes, any VAT you are eligible to pay is included in your annual fee.
As with most investments, other costs can apply but we aim to keep these as low as possible. Investment costs include fund charges, taken directly by the fund provider and market spread (the difference between the price we buy and sell investments).
Fund charges in your contract notes. It may also change slightly over time, depending on the mix of funds we use (learn more about Fund charges here).
The fee you pay depends on the total value of your investments which, in turn, depend on the performance of the markets and regions into which you’re invested at any given time, which can go down as well as up. It also depends on whether you add or withdraw money during the month. Therefore, it’s impossible to predict what your plan will be worth in any given month and consequently what fee you’ll pay. You can use our fee calculator to give you a good idea of what you might pay in the first month.
No, the cost of the service provided by Winterflood Securities is included in the annual management fee that you pay Wealthify.