Fresh manager to tackle fees issues
InvestwithQ will take a stand against the culture of hidden charges and high fees, according to its managing director, Rod Halling.
Mr Halling said the investment manager will tackle the controversies over fees and transparency head-on by charging what it says are the lowest investment fees in the financial arena.
InvestwithQ, which forms part of wealth manager Tideway Investment Partners, officially launched on Monday.
It provides investment portfolio management services for private investors with funds in self-invested personal pensions, Isas or dealing accounts on a low-cost, fixed-fee basis, working alongside IFAs.
For those investing £100,000 or more, the InvestwithQ service offers total portfolio expenses of around 1 per cent a year or less, according to Mr Halling.
He said the company would offer advisers an honest, transparent service untainted by commission bias, from an experienced investment team.
He said: "We felt it was time someone in the financial services industry set an example by making a stand against the culture of hidden charges and high fees."
Mr Halling said the portfolios are tailored to investors' objectives and risk profile and are invested worldwide in a range of collective share and bond funds by the wealth management team at Tideway Investment Partners.
He said InvestwithQ charges a flat monthly fee, does not pay commissions to introducing advisors and does not invest clients' money in any commission-paying funds or products.
The service concentrates on exchange-traded funds, investment trusts and individual shares.
Mr Halling said the company embraces the spirit of the FSA's retail distribution review.
He said: "We offer sensible investment strategies, sensibly priced, with no hidden up-front fees or exit penalties. Total annual expense ratios are around 1 per cent compared to many services which cost as much as 3 per cent.
"We focus on liquidity, asset allocation, generating dividend income and investment timing to preserve profits and capital. We do not emphasise fund manager selection and steer clear of complex expensive investments such as structured products, where dividend income gets consumed by charges and the cost of so called guarantees."
Tony Byrne, managing director of Buckinghamshire-based Byrne Williams, said it was time investment companies disclose more details of funding structures.
Mr Byrne said: "Too many companies get away with disclosing their total expense ratios and the regulator should ensure and insist that all charges are shown."
