Heritage Loyalty Discount
Discounts apply when Yorkshire based clients invest larger amounts of money with our financial advisers, which is represented by our tiered charging structure. This is relatively typical in the financial industry, however we also apply that discount to additional investments based on the money we already manage for investors*.
For example, Mr and Mrs Wallace already had £220,000 between them in ISAs and pensions invested with our financial advisers on our Standard service. They receive another £60,000 they wish to invest to top up their portfolio and can do so with an initial charge of only 1% rather than the standard 3%, as their total assets under management* are above £200,000 under management and therefore qualify for the largest discount.
* To qualify for the loyalty bonus your investment portfolio must be managed at least under the ‘Standard’ service level with a fee of 0.5% per annum.
Heritage Replacement Promise
We often see that investors in Yorkshire can be disappointed when their financial adviser continually moves their investments around. Although a new charge levied each time a transaction takes place, how can they be certain their financial adviser is making the amendment to generate the best return for them?
At Heritage, our financial advisers have the trust of all of our clients, and that’s because we are professional and want to build on the bond of trust by showing we make the decisions for the right reasons.
If we manage monies for a client (using at least the ‘Standard’ service level) and our recommendation is to move from one investment to another as our research indicates this should be a superior investment, we do not feel it is fair to levy a charge – after all, our clients pay us an ongoing fee to manage their money and trust us to take steps to improve their circumstances. This is called the Heritage Replacement Promise, although we sometimes call this the no churn guarantee (‘churning’ being the colloquial term in the industry of the practice of some firms to continually ‘churn’ client investments from one solution to another and charge a fee each time).
Where the reason for switching an investment is for reasons other than performance, risk or basic tax planning, for example more advanced planning such as inheritance tax planning or to purchase an annuity with an existing pension fund, we do levy a charge as this can involve much more complicated reports and an additional layer of financial advice.
For more information on our loyalty services, please do not hesitate to contact our financial advice team in Morley by calling 0113 350 2080.