The performance-related management fee is applicable to the UK Growth and Income & Growth portfolios in the Whitechurch Direct Equity DFM service.
An annual management fee of 1% plus VAT will be applied only if the models make a positive return over 12 months, and the annual return exceeds that of the average UK Growth unit trust in the UK All Companies sector.
An annual custodian fee of 0.4% is still applied to all portfolios, which are only available through financial advisers.
The strategies invest in a focused portfolio of 15-20 UK shares.
Since inception in November 2011 the Whitechurch UK Growth portfolio has returned 90.8% and the Income & Growth portfolio has returned 80.6% versus the UK All Companies sector return of 44.4% (source: Whitechurch Securities and FE Analytics, 18/11/11 – 31/1/14, bid-to-bid net income reinvested).
Head of UK equities Amanda Tovey said: “A lot of Wealth Managers will now only offer portfolios of direct equities to very high net worth clients.
“Investors who want to hold a focused portfolio of UK shares can gain access to these model portfolios from just £30k, whilst for clients with £200k or more we will offer personally tailored portfolios that include individual stocks.”
