Fowler Drew fees
We charge flat fees for financial planning and ad hoc advice. We charge asset-based fees for discretionary management, at a very competitive level in our target market. We show the schedule here. Other pages under Fees will allow you to estimate your own all-in costs if moving to Fowler Drew and to assess the value for money we offer.
- The virtue of simplicity and clarity
- Minimising cross subsidies between clients
- Minimising conflicts of interest arising from different charging methods
We believe these are best met by varying the basis of charges by service element:
- Flat fees for initial planning, independent of size
- Asset-based fees for goal-based discretionary management, with floor and cap
- Flat fees for other planning or advice needs
We show below our fee schedule by service element: initial planning, discretionary management and new or ad hoc financial planning.
Other information about fees, charges and value
These are Fowler Drew charges. Discretionary management also entails third-party charges for custody, transactions and the products used as portfolio building blocks. Third-party costs and the resulting all-in costs, as well as an explanation of the variables that explain differences between clients are set out here.
New clients can expect all-in costs to be between 0.7% and 0.9% pa, compared with typical competitor costs between 1.0% and 2.5% pa.
Read about how to assess value for a portfolio service here.
All charging methods introduce some form of conflict of interest. None is free of bias for all clients. Read how we rationalise the application of both flat and asset-based fees in the context of industry debate about the fairest approach. Read here how we demonstrate the avoidance of fee bias.
Fowler Drew fees by service element
- Fixed (in £) as a function of scope and complexity (typically between £2,500 and £5,000)
- Independent of asset values
- Once only
Discretionary portfolio management:
- 0.5% (0.6% after VAT) pa of assets assigned to all goal-based portfolios
- Subject to negotiable cap above £7m of assets and floor of £3,000 after VAT (to minimise cross subsidy)
- Includes regular replanning of goals throughout the plan
- Subject to cost-based flat-rate uplifts for non-standard service features
New financial planning:
- New goals or radical changes to planning: flat fees (as for initial planning)
- Defined Benefit Transfers: flat fee
- Collaborating with third-party specialist advisers: time based
Arranging life insurance policies:
- Percentage, with £ caps (paid as commission by insurers, part rebated)