Enhance your monthly income at no additional cost to you

If you have stocks and shares ISAs or investment funds held outside of Chartwell Direct you are very likely to be missing out on an enhancement to your income which could be provided to you without changing your investments at all.  We always share the ongoing commission we receive with our clients, and are the only investment broker to pay this ‘free rebate’ directly into your bank account every month.

In my last article I discussed the way in which fund manager’s levy initial fund charges of up to 5.5%, and the benefits of using our services to reduce or eliminate these charges.  In the majority of cases, fund managers also charge an annual management charge, which equates to around 1.5% of your fund value per annum, and we are remunerated by receiving about 0.5% of this charge.  This is typical of investment brokers in our industry.

However what is not typical, and quite unique to Chartwell Direct, is the way in which we rebate part of this 0.5% charge to us back to you.  We pay 0.15% of your annual fund value into your bank account, on a monthly basis, as a reward for using our services. We are the only broker to offer this ‘cashback’ facility in this way.  Whilst this may seem like a small amount, at a time when the financial markets have been shaken and investment income has fallen for many, any enhancement to your income may be valuable: especially when paid on such a regular basis.  Of course the greater your fund value, and the longer you are invested for, the greater the financial benefits of this service will be.  Below shows how this service might work for a £50,000 investment, growing steadily at 7% per annum over a 10 year period.

N.B Please note this table is for illustrative purposes only and the figures are not guaranteed.  I have assumed that the value of the portfolio has grown steadily at 7% per annum, however in reality a portfolio of investment funds is likely to fluctuate in value and capital growth may be higher or lower than this.  In this example, we pay 0.15% of the fund value back to the client; however this may not always be the case as a few funds do not pay us a trail commission.  Monthly cashback is calculated according to the portfolio value at the time.

If you hold investment funds directly with fund managers or through other investment brokers you may be missing out on this enhancement to your monthly income which we could provide to you without the need for you to change your investment portfolio.  As demonstrated above, over time this can add up to quite a substantial sum of money.  In particular, since we have a strong relationship with the ‘fund supermarket’ Cofunds Ltd, if you have investments with Cofunds which are outside of our agency you could start receiving this income almost immediately, simply by signing a simple form.

We believe all ‘direct’ investors in open-ended funds and unit trusts should receive a share of the ongoing commission which their investments generate, and every source of income is valuable at the moment.  There are no charges involved in transferring your investments into our services, and if you would like to discuss this further please do not hesitate to contact our Investment Helpdesk on 01225 823915 or at direct@chartwell.co.uk.