FE Analytics+ Ex Ante costs and charges calculator provides Advisers with a clear, transparent view of all the pre-sale (ex ante) charges you need to disclose to clients under MiFID II regulation that can impact their investments be it a bespoke portfolio or model portfolio via our FE Transmission service, all in one place.
How it works
Available to Advisers via FE Analytics, the tool prepopulates ex ante investment product charges (One Off, Ongoing, Transaction and Incidental costs) for all funds in a portfolio and sums the weighted holdings up to provide an aggregate of costs as required the MiFID II client disclosure requirements. You can include any additional charges like Adviser fees, platform fees as both percentages, monetary amounts (or both) to this aggregate alongside user defined investment term and growth rates.
FE’s ISO certified data collection process compiles and verifies MiFID data on over 95% of EMT share classes, investment trusts and ETFs. This data is readily available to users of FE Analytics. The FE Analytics+ ex ante costs and charges calculator will pre-populate this data for all funds and portfolios you have stored within your FE Analytics account (including any DFM model portfolios you have access to) making the required calculation quick and easy to perform. Investment charges that are pre-populated include; one-off charges, ongoing charges, transaction costs and incidental costs for all funds in the portfolio which are summed up for you.
You are able to input the relevant service charges including; one-off adviser fees and platform fees as well as recurring ongoing charges (adviser fees, platform fees, investment management fees), transaction costs, ancillary costs and incidental costs. The calculator then shows the value of the investment at the end of the chosen time-period after considering growth less charges. It allows you to choose a time period and up to 3 growth rates to suit your clients’ needs. You can also choose to look at lump sum investments, or investments with regular contributions or a combination of a lump sum and regular investment. Subsequently, a net yield is calculated to show the effective growth that is obtained after the charges are taken into account.
In addition to numbers, the calculator offers interactive visuals to communicate the impact of charges to clients in an engaging manner. The easy to understand graphics show total investment, charges, net growth, reduction in yield and more. A variety of reports can be exported from the tool with varying levels of detail and all reporting is available as PDFs for storage or circulation to clients.
Benefits to Advisers
Accuracy of data: FE collects all the costs straight from the asset managers, promising accuracy and reliability.
Easy to read outputs: The results of the calculation are exported into a PDF to clearly indicate the impact of charges on an investment.
Customisable: Users have the freedom to select different costs, growth and term options.
Client communication: The tool can enhance your client disclosure with easy to understand graphs that can either be sent to clients or for use as a sales tool for demonstrating the value of your advice or the difference between charging basis points or flat fees etc.