What assumptions are used for charges?
In Quick View, the client's existing pension fund and pension contributions are assumed to be invested into an Old Mutual Wealth Collective Retirement Account, and the tiered Old Mutual Wealth product charge (for Charge Basis 3) applies to the value of the fund.
For the fund charges you can select either a specific fund choice or a risk-rated fund from 1-10.
You can choose from the full UK fund ‘universe’ and the OCF (Ongoing Cost of Fund) from the funds you pick (as well as their asset allocation) will be taken from Financial Express and used in the calculations.
If you pick a risk-rated fund, an OCF of 0.8% will be assumed and this cannot be altered.
There is no consideration for adviser fees.
Should you want to enter specific charge information, you can ‘import’ the information you have entered into the Full View option.
In Full View, you can enter specific product charges and adviser fees when inputting the client’s investments into the tool.
If you select funds, the OCF (and asset allocation) will be taken from data received from Financial Express. You can pick from the full UK fund universe, as well as the funds offered through Old Mutual Wealth’s platform.
If you choose a risk-rated fund, a charge of 0.8% is assumed for all risk levels. You can change this to the actual OCF for the fund they are invested in. A lower charge may be more appropriate for lower risk levels.
For any new contribution, you can net down the amount entered to allow for any initial product provider / platform, fund or adviser charges.