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Dimensional keep on giving…and Nucleus lower its charges

Any of you that have been subjected to one of my investment coaching sessions will know that we have a BIG focus on keeping your investment costs as low as possible. High fees are your enemy and for this reason (and others) we choose to partner with the low-cost asset managers Vanguard and Dimensional.

Now the 2nd largest asset manager in the world, Vanguard is (rather uniquely) a mutual company which means that its profits get reinvested to reduce your investment costs.

Dimensional*, although not a mutual, is privately owned by a small number of people and its employees and has a track record of reducing its fees on a regular basis. Having last done so in May 2021, they are set to repeat this price cut across a broad range of UK and Irish equity and fixed income funds.

“These changes represent a 6% reduction on an asset-weighted basis for the impacted funds…”

John Romiza, Co-Chief Executive Officer, Dimensional Fund Advisors Ltd

*Dimensional funds are distributed to investors only through approved fee-only advisors.  Brett Investment has been an approved advisor since 2007.  DFA is considered to be one of the top fund families around.

Nucleus Wrap – A reduction in the fees you pay…

Some of you might be wondering what has been happening behind the scenes with Nucleus since they merged with James Hay.

Well being bigger means they can now create more profits, which has allowed them to invest a further £6.5 Million into improving the platform (and the technology that underpins it) AND reducing the price that you, as an investor, pay.

The first of many…

Nucleus have announced that from July this year, they are reducing their platform charge by 0.02% on the first tier of £500,000 with the intention to reduce costs even further in the future.

Investment Current charge New charge from 2 July 2022
Up to £500,000 0.35% 0.33%*
£500,000 to £1m 0.175% No change
Above £1m 0.05% No change

*As an example, you will see your platform costs reduce from £350 p.a. to £330 p.a. for every £100,000 invested, up to £500,000.

Note: There are additional charges for onshore and offshore bonds, and equity trading as per our previously provided ‘Our Partners’ guide.