Latest news with #Netwealth
AU Financial Review
04-08-2025
- Business
- AU Financial Review
Platforms prepare to cut ties with SQM over $1b super scheme failure
Netwealth, one of the superannuation platforms tied up in the $1 billion failure of the Shield Master Fund and First Guardian investment schemes, has removed SQM Research from its systems after it gave both a favourable rating. The collapse of the two schemes threatens the retirement savings of nearly 11,000 Australians, and several research houses are coming under scrutiny after giving them grades that indicated they were safe and investible.
Daily Mail
21-07-2025
- Business
- Daily Mail
I'm a wealth planning expert: Here's why you must always ask your financial adviser for the 'all-in fee'
Charlotte Ransom is the co-founder and chief executive of wealth manager Netwealth. Did you know that you have the right to ask exactly what 'all-in fee' is being charged by your financial adviser, planner or wealth manager. If you are a longstanding client, you might well be unaware of the total amount you are now paying, and will never find out unless you ask because advisers do not typically issue an annual invoice. Instead, fees are taken directly out of your investments, Isas or pension fund, so you might not notice the big inroads they are making into your overall returns over time. The fees advisers levy in this way include not just their own, but those for any third party services they use on behalf of your account, such as platform or custodian charges. Your right to be told about every individual item or service you are paying for, plus the most important 'all-in fee', is a rule set by the Financial Conduct Authority. But too few clients who come to my door are aware that advisers MUST provide this information - not only when you first sign up for their services, but on your request at any point in your business relationship with them. Getting a full fee breakdown, plus the 'all-in fee', from your adviser is important for the following reasons. First, once you know the total fee, you will be armed with key information when you look around for the best deal to fit your needs and circumstances. Second, the size of the fees has a significant and compounding impact on your investment returns – this can get lost when investment markets are strong, but they make a huge difference to the money that ends up in your pocket. Let's look at what you should ask your adviser in terms of fees, and then how to make the best use of the details you receive from them. What to ask a financial adviser, planner or wealth manager about fees Ask for a full breakdown of fees and the total 'all-in'. If you are not given a satisfactory answer or don't understand the answer, do not be put off! Ask again! If an adviser fobs you off or the fees they provide aren't clear, that's a red flag and may breach FCA rules. (It should go without saying that you should only use an adviser registered with the FCA - check here.) If you detect any uncertainty or reluctance on the part of an adviser to be completely transparent on any fees, steer clear. If you don't understand any of the terms used, don't hesitate to ask for an explanation. But here is what you can expect in a full breakdown that the all-in fee will consist of. The fee list you are given will broadly cover the following areas. - Upfront fee for initial planning - Ongoing investment management and advice fees - Platform and fund fees - Other third party fees and tax Regarding ongoing fees, you should receive regular updates on charges, and advisers must prove they're delivering value for the service you are receiving, for example during annual reviews. Here's a more detailed list, explaining some of the jargon you will come across. 1. Annual management charge (AMC) - A percentage fee for managing your investments, often between 0.5 and 1.0 per cent per year. 2. Platform or custody fee - Charged for holding and administering your investments. This can be a flat fee or a percentage of your assets. 3. Fund fees (ongoing charges) - Additional costs from the funds used in your portfolio. These fees are on top of the AMC and taken at source by the funds themselves. On passive funds, those that track market indices, you can expect these to come in between 0.1 and 0.4 per cent. For active funds, run by a professional manager, they will usually be between 0.6 and 0.9 per cent. 4. Trading or execution costs - Charged when buying or selling investments. These are often not shown since they are estimates, but should be understood since they may add another 0.10 to 0.25 per cent in costs to your portfolio per year. 5. Financial planning fees - These will be charged on top of the AMC for financial planning related to topics such as Isa or pension contributions, retirement planning, tax optimisation, gifting and so on. Advice and financial planning fees are often 0.5 per cent to 0.75 per cent per year. 6. Upfront/initial fee - Most advice firms charge an upfront fee for an initial report on your assets and overall circumstances. They may also charge an upfront fee every time you add to your account, for example for an annual Isa contribution. This fee is often between 1 and 3 per cent and is charged in addition to the ongoing financial planning fees. 7. Exit penalties - These are now rare but it is worth checking to be sure. 8. Tax reporting fees - Annual tax packs (for capital gains tax and income tax) may be included but it is worth checking. 9. VAT - Not all quoted fees include VAT, so check if it applies or whether it's added on top. 10. All-in fee - The FCA reviewed financial adviser charges in 2020 and found clients were typically paying 2.4 per cent upfront and 1.9 per cent in total ongoing charges per year. If you combine the two figures that works out as 2.14 per cent a year over 10 years. What to do when you know your all-in fee Investment performance matters of course but fees are the key aspect that you can control when it comes to having your money managed. It is the 'net-of-fee' return which will most impact your financial future. If you shop around, you should be able to beat the typical 2.14 per cent a year over 10 years quoted above and cut it by 1 percentage point. An annual fee saving of 1 percentage point on a £250,000 investment portfolio or pension fund is worth £2,500 every year, and over 10 years is a saving of £34,000 based on 5 per cent growth. Here is what that saving in annual fees represents based on annual returns of 3, 5 and 7 per cent on investment or pension pots worth £100,000, £250,000 and £500,000. Shop around for the best adviser, planner or wealth manager In order to find an adviser, for the first time or if you decide you want to move on from your current firm, be clear on what you need. There are a wide range of service providers from smaller independent advisers to large wealth managers, as well as hybrid propositions which provide both investment management and financial planning advice enhanced by modern technology. Investment managers will run discretionary portfolios on behalf of clients – their job is to invest in globally diversified equities and bonds to provide a range of investment returns to meet clients' goals. Financial planning services will tend to cover the same important areas such as planning for retirement and optimising tax efficiency. The key difference is most likely to be in charging structures, and once you know a firm's full set of costs and charges it will be easier to compare to other providers. Remember that it is never too late to change adviser or wealth manager, regardless of what fees have already been paid. Investment and retirement horizons last a very long time and now – equipped with more information – it's important to ensure that your money is working as hard as possible for you, not for someone else.
Telegraph
05-06-2025
- Business
- Telegraph
Masterclass live at 12pm on 26 June 2025
Speakers Holly Mackay, investment expert and founder of Boring Money, and Matt Conradi, deputy chief executive at Netwealth, will discuss a range of topics critical to long-term wealth preservation as well as answering your questions about why it's important to diversify beyond bricks and mortar. The webinar will start at 12 noon on Thursday 26 June
Telegraph
30-05-2025
- Business
- Telegraph
Why it pays to diversify your investments beyond property
In the UK, people like to invest in what they can see – usually bricks and mortar – and judging by the property market over the last couple of decades, it's clear why. 'A whole generation of people have put money in their own homes, in rental properties, and by and large that's turned out well – prices have risen, properties earn an income and people feel good about it,' says Matt Conradi, deputy chief executive of wealth managers Netwealth. 'In the UK, we tend not to see property as a risk.' But when a new phase of life beckons, tax rules evolve and interest rates rise, having so much of your money in property can lose its appeal. 'If you are beginning to think about a stable income in retirement, gifting some wealth to the next generation, drawing down on capital, then exposure to just one asset class – UK residential property – doesn't give you much flexibility. All your eggs are in one basket,' he explains. Nor can you easily take out a little cash – as he puts it, 'you can't just sell a bathroom'. At this stage, it makes sense to diversify. 'Not only through different asset classes such as stocks and bonds but also diversification in its broadest sense,' he says. 'That means flexibility in how your money is packaged, how and when you can use it and how much you need to meet life goals. A fixed rental income can take you over tax thresholds and doesn't give much room for manoeuvre.' With a spread of assets, individuals can take advantage of market price fluctuations and tax rules to withdraw cash more efficiently. 'You don't want to take money out when the market is 20 per cent down – it's much harder to recover. So you diversify to minimise the risk.' Property can also be inconvenient, especially for owners on the brink of lifestyle changes. 'They might be poised to travel – they don't want someone calling at 7pm to say the boiler is broken. They don't want the hassle,' he says. That's where the Netwealth team comes in – helping clients understand how to spread risk and plan around key milestones, from paying off a mortgage to gifting wealth or fixing a date for retirement. Using a blend of expert advice, innovative technology that shows exactly where money is invested, along with tools to model future outcomes, Netwealth supports clients at every stage. The firm also stands out for its low fees – often as low as 0.35 per cent – thanks to its use of low-cost passive funds and efficient digital tools. They'll also help clients make the most of Isas and pensions, and adapt to changing legislation, such as the proposed changes to inheritance tax changes that are due in 2027. 'Although you should never take any decision for tax reasons alone. It must fit with your goals,' he says. 'Expert advice and investment management combined with the latest technology – with much lower fees – help individuals to see how their own investments will fare in different scenarios and reveal trends to build long-term wealth preservation through excellent investment management,' he says. Lower fees can save life-changing sums – tens of thousands of pounds over time, he adds. 'Many people haven't dealt with wealth managers before and might be sceptical about charges – ours are low and our technology offers transparency.' After a lifetime of careful saving, some find it difficult to shift gears: to balance their portfolio, start spending or support their family. Personal finance projections can offer clarity and confidence, showing whether goals are achievable or if wealth could be passed on more efficiently. Others may feel uncertain about market risk, which is why Netwealth offers flexible levels of support, including regular check-ins. 'We don't say, 'Come to us we'll be up 5 per cent when markets are down.' Returns accrue over time and there will be ups and downs,' he explains. 'We can't predict markets or inflation – those are outside our control. But we focus on what we can manage: smart diversification, efficient tax use, paying lower fees and thoughtful planning. that will be how you get the benefit of better returns over time.' Find out more at When investing, your capital is at risk Netwealth Investments Limited is authorised and regulated by the Financial Conduct Authority, with firm reference no. 706988. Registered in England and Wales, with company no. 09493628 and with registered offices at The Bloomsbury Building, 10 Bloomsbury Way, London, WC1A 2SL.
Telegraph
30-05-2025
- Business
- Telegraph
Join Netwealth's Beyond Property masterclass
In the UK we often choose to invest in bricks and mortar, but with frequent tax rule changes and relatively high interest rates currently the norm, is this really the best way to build your wealth? Our panel of experts will discuss why it's important to diversify beyond property and how to make your wealth work for you. Sign up to join the webinar on 26 June to hear Holly Mackay, investment expert and founder of Boring Money, and Matt Conradi, deputy chief executive at Netwealth, share their expertise and to hear them answer your questions. Guest speakers Holly Mackay: Mackay has 25 years' experience in the financial service industry and is the founder and chief executive of Boring Money, a free, independent website that offers consumers help with investments and pensions. Matt Conradi: Over the past 15 years, Conradi has worked with a wide range of clients and families to build their financial plans and manage their investments. As head of client advisory at Netwealth, he has helped to develop proprietary wealth planning tools, financial advice and guidance services so that clients can make more informed decisions about their financial futures. Host Helena Pozniak: A freelance journalist and editor with over 15 years' experience in print and television. At the BBC, Pozniak was a producer and reporter on European news and features (BBC World) and before that she worked for Reuters. She currently writes for The Telegraph, other newspapers and magazines as well as leading universities and school publications. Event Details: Theme: Beyond Property: Long-Term Wealth Preservation with Netwealth Host: Helena Pozniak Guest speakers: Holly Mackay, Matt Conradi Date: 26 June 2025, 12-1pm Location: Online webinar (email address required for access) Eligibility: Attendees must be aged 18 or over Key dates: Attendees must register before 23:59 on 24 June 2025 Register here for this Telegraph Media Group hosted event for Netwealth: Find out more at When investing, your capital is at risk Netwealth Investments Limited is authorised and regulated by the Financial Conduct Authority, with firm reference no. 706988. Registered in England and Wales, with company no. 09493628 and with registered offices at The Bloomsbury Building, 10 Bloomsbury Way, London, WC1A 2SL.
