FEES

INDUSTRY FEES OUR FEES IMPACT OF FEES

INDUSTRY FEES

Fees that clients pay have been coming under a lot of scrutiny lately, as they should. The financial services industry is notorious for being vague or complicating discussions about, or disclosures of, fees. Why? Well, obviously, it’s in order to earn a higher margin from clients. A 2017 study by the Financial Conduct Authority in the United Kingdom found many problems with the way in which fees were charged and disclosed and with the value for money investors were receiving from active fund managers.

Over the long-term fees really do matter. A 1% saving on a portfolio which generates a 6% gross return would increase the final value of your investment by approximately 10% over 10 years and by approximately 22% over 20 years. On a £10 million portfolio this would mean saving £1,502,084 over 10 years and £4,666,098 over 20 years. So next time you get invited to a swanky event by your financial advisor, think carefully about who is really paying for the tickets…

Our Fees

Our fee is simple to understand. We charge from 0.3% per annum (+VAT where applicable) on the assets we manage. Importantly we do not charge fees on cash balances which are not yet implemented.

The total costs of the underlying ETFs is about 0.20% to 0.30% per annum.

Where clients have opted to retain their current custodian and broker, the cost of execution and custody fees are not determined by Omba but we assist clients in assessing their current providers for competitive rates and credibility of their platform.

Where our clients choose the Omba/ Multrees platform we charge a competitive Platform Fee which includes all custody and dealing and we remove the conflict of charging separately for dealing where many competitors split custody fees from execution costs and thus the higher the turnover of a portfolio the higher the execution costs paid by the client and earned by the investment manager.

IMPACT OF FEES

See the impact of a Higher fee rate on your future returns

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Impact of Fees
HIGHER FEELOWER FEE
AMOUNT INVESTEDXXXX
END VALUE BEFORE FEESXXXX
FEESXXXX
VALUE AFTER FEESXXXX
Expected Growth
Next 15 Years
Disclaimer and Assumptions
  • Projected returns help you compare the impact of fees over the period but actual returns may vary and past performance is not an indication of future returns;
  • The calculator assumes you re-invest all returns over the selected period and does not take into account any tax you must pay on investment returns or brokerage costs;
  • The calculator assumes Expected Return is an annual amount compounded annually, and the Fee input is an annual fee, compounded quarterly;
  • The default fee rate of 2.56% for Higher Fees is based on a study by Grant Thornton;
  • The calculator is not intended to be your sole source of making an investment decision. It is provided to you as a guide to see what the impact of paying excessive fees could be. You should consider getting holistic advice from a financial adviser who can assess your ability and willingness to take risk and assist you in achieving your financial goals.
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