Investment Services. Fee Tariffs

Transcription

1 Investment Services Fee Tariffs

2 Fee Tariffs This document sets out fee tariffs applicable to our investment management services, specifically the Discretionary Investment Management Service, the Offshore Advisory Service and the Portfolio Consulting and Manager Research service. Each of these services (collectively the Services, individually the Service ) is provided by RBC Investment Solutions (CI) Limited ( the Company ), subject to the applicable terms and conditions as set out within the Company s Terms and Conditions for Investment Services ( the Terms ). The investment products that we provide are not limited to proprietary or RBC-affiliated funds and may include third party investment products selected at our discretion in line with your chosen investment profile. Suitability of Service You should ensure that the Service is suitable for your particular needs and objectives. If in doubt, you should talk to your RBC representative to seek clarification and confirmation. Third Party Fees and Commissions Retrocession (commission) may be paid to us by certain fund managers and other third parties and in such instances will be retained by us, where we are permitted to do so. Where investments are executed through or structured by our associates, they may receive fees and commissions in relation to these transactions. INVESTMENT SERVICES 2

3 Discretionary Investment Management Service The Fund Solutions and Segregated Fixed Income Solutions tables show annual fee rates which are charged quarterly in arrears and calculated as a percentage of the average net asset value (NAV) of your portfolio throughout the relevant calendar quarter, including cash. Fees are inclusive of all RBC services including custody, administration and transaction fees, but exclude any third party costs such as, but not exclusively, brokerage, stamp duty and exchange fees Where a portfolio is initiated or terminated within a quarter, we shall be entitled to charge a proportionate part of any fees for the relevant quarterly period including either the initiation date or the termination date as relevant. Details of the agreed fee rate will be confirmed in writing prior to the provision of services. The minimum Investment Portfolio size for the Discretionary Investment Management Service is 1,000,000 or currency equivalent. Fund Solutions Value 1 Risk Appetite Very conservative (fixed income only) Very conservative (multi-asset) Conservative Balanced 2 Growth Aggressive growth First 1 million 0.80% 1.25% 1.25% 1.25% 1.25% 1.25% Next 2 million 0.70% 1.00% 1.00% 1.00% 1.00% 1.00% Next 2 million 0.60% 0.85% 0.85% 0.85% 0.85% 0.85% Next 5 million 0.50% 0.70% 0.70% 0.70% 0.70% 0.70% Next 15 million 0.45% 0.60% 0.60% 0.60% 0.60% 0.60% Next 25 million 0.35% 0.55% 0.55% 0.55% 0.55% 0.55% Over 50 million 0.30% 0.50% 0.50% 0.50% 0.50% 0.50% Individual funds in which your portfolio is invested will bear additional costs, for example fund manager, custodian and administrator fees, which are charged to the fund directly. RBC Discretionary Investment Management fees are additional to these fund costs. Minimum fee per quarter: 1,250 or currency equivalent. This minimum charge will be collected quarterly in arrears. Example For a Balanced portfolio with an average daily value of 3,000,000 the quarterly fee will be calculated as follows: 1,000,000 at 1.25% = 12,500/4 = 3,125 2,000,000 at 1.00% = 20,000/4 = 5,000 Total quarterly fee = 8,125 Fees will rise or fall in line with the average daily market value of your portfolio, subject to the minimum annual charge. 1 Sterling value or currency equivalent 2 A Balanced Yield Solution is also available 3 RBC WEALTH MANAGEMENT

4 Segregated Fixed Income Solutions Value 1 Annual Fee Up to 3 million 0.70% Next 2 million 0.60% Next 5 million 0.50% Next 15 million 0.45% Next 25 million 0.35% Over 50 million 0.30% Minimum fee per quarter: 5,000 or currency equivalent. This minimum charge will be collected quarterly in arrears. Core Portfolio Risk Characteristics Investment Characteristics Very conservative (fixed income only) Liquidity and income or capital protection Lower volatility of returns Asset Allocation 2 Cash 5% Fixed income 95% Very conservative (multi-asset) Liquidity and income or capital protection Lower volatility of returns Cash 4.5% Fixed income 67.5% Equity 18% Alternatives 10% Conservative Balanced Growth Modest capital appreciation with capital preservation Limited volatility of returns Cash 4% Fixed income 48% Equity 28% Alternatives 20% Balanced between capital appreciation and capital preservation Medium volatility of returns Cash 4% Fixed income 32% Equity 44% Alternatives 20% Long-term capital growth Higher volatility of returns Cash 4% Fixed income 18% Equity 53% Alternatives 25% Aggressive growth Long-term capital growth Higher volatility of returns Cash 3.5% Equity 66.5% Alternatives 30% Shorter investment horizon Lower expected return Lower volatility Increased security of capital Longer investment horizon Higher expected return Higher volatility Greater risk of loss 1 Sterling value or currency equivalent 2 Given percentages are for indicative purposes only INVESTMENT SERVICES 4

5 Offshore Advisory Service Our Charges Our services are ordinarily charged as an all-inclusive management fee although we may at our discretion and by notice vary this fee and/or the basis on which we charge it during the course of our relationship with you. In each case, the minimum quarterly charges will be taken in sterling or currency equivalent. Where we charge you the fee it will be charged as a percentage of the average net asset value (NAV) of your account throughout the relevant calendar quarter ( Fee Calculation Period ), excluding cash. Where an account is initiated or terminated within a quarter, we shall be entitled to charge a proportionate part of any fees for the relevant quarterly period including either the initiation date or the termination date as relevant. Fees and minimum charges will be collected quarterly in arrears from your account. The minimum Investment Portfolio size for the Offshore Advisory Service is 2,000,000 or currency equivalent. All-Inclusive Management Fee Tariff A Advisory Services This advisory tariff is based on an all-inclusive management fee that includes the full investment advice service, all transactions, custody and administration but excludes third party brokerage costs, which are charged separately, and costs relating to foreign exchange (spot, forwards, non-deliverable forwards, options). Individual funds in which your portfolio is invested will bear additional costs, for example fund manager, custodian and administrator fees, which are charged to the fund directly. RBC Offshore Advisory Service fees are additional to these fund costs. Tariff A - Advisory Services Portfolio size GBP 1 Fee p.a. Minimum quarterly charge 2,000,000-5,000, % 5,000 5,000,001-10,000, % 12,500 10,000,001-25,000, % 21,250 25,000,001-50,000, % 37,500 Over 50,000, % 68,750 1 Sterling value or currency equivalent 5 RBC WEALTH MANAGEMENT

6 Tariff B Fixed Income This advisory tariff is designed for fixed income portfolios only and is based on an all-inclusive management fee that includes the relevant investment advice service, all the transactions, custody and administration, but excludes third party brokerage costs, which are charged separately, and costs relating to foreign exchange (spot, forwards, non-deliverable forwards, options). Tariff B - Fixed Income Portfolio size GBP 1 Fee p.a. Minimum quarterly charge 2,000,000-5,000, % 3,750 5,000,001-10,000, % 8,750 10,000,001-25,000, % 15,000 25,000,001-50,000, % 25,000 Over 50,000, % 43,750 Example For an Advisory Services client with an average daily portfolio value of 7,000,000, the quarterly fee will be calculated as follows: 5,000,000 at 1.00% = 50,000/4 = 12,500 2,000,000 at 0.85% = 17,000/4 = 4,250 Total quarterly fee = 16,750 Fees will rise or fall in line with the average daily market value of your portfolio, subject to the minimum quarterly charge. Additional Charges Swift charges: each Brokerage fees: as charged Delivery or receipt of stock: Out of pocket courier: as applicable Valuations requested in addition to standard quarterly reporting: 50 1 per copy Lifting fees for euro payments are charged by third party banks. We reserve the right to pass these charges on to you where appropriate. For transactions not involving the sale or purchase of securities (e.g. transfers), we charge for each transaction at a rate of per UK security and (or currency equivalent) per non-uk security. 1 Sterling value or currency equivalent INVESTMENT SERVICES 6

7 Portfolio Consulting and Manager Research The following table shows the annual fee rate which is charged on the Quarter Date and calculated in sterling (or another currency as agreed by us) by determining the value of your Investment Portfolio (based where appropriate on prevailing foreign exchange rates on the Quarter Date), including cash where it is part of the managed portfolio strategy (i.e. not pending investment) 3. Value 1 Annual Fee Investment Portfolio value 0.40% Fees will be invoiced quarterly in arrears. The service term is for a minimum period of one year. This Tariff is reviewed periodically and may be revised from time to time, subject to the Company providing you with at least 30 days notice of any such changes. The minimum Investment Portfolio size for the Portfolio Consulting and Manager Research service is 20,000,000 or currency equivalent. Example For a Portfolio Consulting and Manager Research client with a portfolio comprising the following elements at Quarter Date, the quarterly fee will be calculated as follows: Non-cash assets: 19,000,000 Cash (part of managed portfolio strategy): 500,000 Cash pending investment: 2,000,000 Total value for basis of charge: 19,500,000 Total quarterly fee = 0.40% = 78,000/365 x 90 = 19,233 Fees for this service are calculated using an interest basis of 365 days (for sterling only). This means that, unlike dividing the total annual fee by 4 to calculate the quarterly amount, the annual fee is instead divided into 365 (in order to calculate the daily charge) and then multiplied by the relevant amount of days to which the charge applies. Should you wish to terminate the Agreement within the first 12 months, commencing from the date of our acceptance of you as a Client, we reserve the right to charge an early termination fee in addition to any fee due in accordance with the Terms. You will have been provided with an illustration of what this may mean at the time of the initial review. 3 Cash in managed portfolios will, in most cases, be chargeable, as it typically forms part of the overall investment strategy and is also used to meet liquidity and fee requirements. Managed portfolios include those of RBC s discretionary and advisory services and external third party managers. In exceptional circumstances, cash held in managed portfolios may be deemed non-chargeable; for example in the case of cash transferred from a trust account, earmarked for investment and temporarily held in a managed portfolio cash account. Exceptions will only be made at our discretion. 7 RBC WEALTH MANAGEMENT

8 RBC Investment Solutions (CI) Limited Le Gallais Chambers 54 Bath Street, St Helier Jersey JE4 8YD Tel: +44 (0) Fax: +44 (0) PO Box 48 Canada Court, St Peter Port Guernsey GY1 3BQ Tel: +44 (0) Fax: +44 (0) rbcwealthmanagement.com INVESTMENT SERVICES 8

9 RBC Investment Solutions (CI) Limited ( the Company ) is regulated by the Jersey Financial Services Commission and by the Guernsey Financial Services Commission in the conduct of investment business in Jersey and Guernsey respectively. The Company s terms and conditions are updated from time to time and can be found at Registered Office: Le Gallais Chambers, 54 Bath Street, St. Helier, Jersey JE4 8YD, registered company number / Trademark(s) of Royal Bank of Canada. Used under licence.

10 RBC664 CA/ (08/15)