Boost your fund performance
See the difference Clean Pricing can make to your investments
To get started, choose a fund and tell us the Annual Management Charge (AMC) your current provider offers - then select a hypothetical initial investment amount.
This calculator is designed to illustrate the difference that traditional, "bundled" pricing versus "clean" pricing makes to the value of a sum newly invested over a period of time. Charles Stanley Direct offers only clean pricing units on new Unit Trust and OEIC fund purchases and we believe that in many circumstances our pricing model will cost you less, leaving a greater proportion of your capital invested thus resulting in a relatively higher total return over the investment period (albeit investment growth is not guaranteed and the value of your investments can fall as well as rise).
Our calculator can help you see the difference for yourself on a single fund. All you need to do is enter a number of fields and click on "Calculate". You may like to enter the figures for a fund that you already own or are considering for purchase. First, specify the headline annual management charge (AMC) for the fund using bundled pricing - 1.50% is typical. Then specify an initial investment amount - we have provided six figures from which you can choose. Next, use the slider to specify the annual growth level you would expect, always remembering that values can fall as well as rise. Next, tell us the period for which this hypothetical amount will be invested - between one and ten years. Finally, tell us the 'rebate', 'loyalty bonus' or 'cashback' (they all mean the same thing) that is offered under bundled pricing - 0.25% is typical. You'll notice that this rebated amount does reduce your charges when paying through bundled pricing, but not by a substantial amount.
You may also choose to apply Income Tax at 20% to that loyalty bonus, as required by Her Majesty's Revenue & Customs since 6th April 2013. Higher rate taxpayers would have to pay more - 40% or possibly even 45% if paying the Additional Rate - and the difference would normally be paid when a tax return is filed. If the hypothetical investment is made inside an ISA or SIPP, this tax would not normally be payable, so don't check the box if this applies to you.
Finally, click "Calculate" to see the hypothetical performance of that investment over the period in question, less charges applied, plus rebates received, less tax paid on rebates (if any), under both a self-directed platform still providing bundled pricing, versus Charles Stanley Direct, offering entirely clean pricing. The difference between the two hypothetical investments will be shown, and in many cases you will see that an investment placed with Charles Stanley Direct would have enjoyed relatively higher growth.
The following assumptions are applied to calculate these figures:
- The clean Annual Management Charge is calculated by subtracting three quarters of a percentage point from the bundled Annual Management Charge (for example, 1.50% becomes 0.75%);
- Growth is expressed annually, realised "straight line" over the period of investment.
- All annualised percentage amounts expressed are converted to monthly percentage amounts by taking the 12th root (i.e. raising to the power of 1/12) and to six-monthly percentage amounts by taking the square root;
- In calculating the performance of an investment purchased through the traditional platform with bundled pricing:
- Growth in the fund at the calculated monthly percentage amount (based on the specified annual amount) is realised monthly pro rata;
- After growth is applied, but before the management charge, the cash rebate for that month is calculated and added (net of any income tax deducted) to the total cash rebate sum accrued for the investment to date. This aggregate amount is released at the end of the overall investment period as a discrete addition to the investment's value. It is assumed that this aggregate sum has not enjoyed any capital growth, and that no interest has been paid on it;
- The fund's annual management charges are applied monthly pro rata as a Monthly Management Charge ("MMC"), as reductions to the capital value of the investment.
- In calculating performance of the investment with Charles Stanley Direct:
- Cash rebates are not paid;
- Management charges are applied monthly after growth is realised (also monthly);
- The Charles Stanley Direct platform fee is applied once every six months, after the fund's own annual management charges are applied for that month. It is applied as a deduction from the value of the investment.
Clients, prospective clients and users of this website should note that:
- This calculator is provided as a tool to illustrate possible savings that may be made for new investments via the Charles Stanley Direct platform rather than through an investment platform using bundled pricing;
- The calculator applies to new investments, rather than to the transfer of existing investments to Charles Stanley Direct;
- The calculator is for illustrative purposes only and should not be taken to imply that an existing platform used by you applies bundled pricing. The practice of actual pricing on other platforms may differ;
- A fund's annual management charge (AMC) is not all-inclusive, as funds incur other charges reflected in the Total Expense Ratio or Ongoing Charges figure, which will thus be higher. For the purpose of the calculator, however, these additional charges have been disregarded;
- This calculator is not an offer or an invitation to invest;
- This calculator is not a financial promotion;
- This calculator does not provide any recommendations based on your circumstances;
- No warranty or guarantee of accuracy of the figures shown is made. The results of the calculation must not be used as the basis of any investment decisions;
- Your capital is at risk. Past performance is not necessarily a guide to the future and the price of funds and the income derived from them may fall as well as rise and the amount realised may be less than the original sum invested.
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