How Lonsdale Services charges for financial advice
Financial Advisers should have a transparent charging structure
Wednesday 4 September, 2019
Lonsdale Services agrees a fixed fee on a case by case basis dependent on the work required. We offer a free initial consultation and provide you with a full explanation of our advice fees before we implement any aspect of your plan.
How Lonsdale Services financial advisers charge for financial advice and services
- Your first meeting at our office is at our cost and with no obligation on your part
- A fixed fee is agreed based on the extent and complexity of the work required to conduct research and prepare an outline financial planning report
- For product selection and implementation the charge would typically be based on the sum invested and would depend on the nature of your agreed personal financial plan
- When your financial plan is in place a fee would be agreed for ongoing progress reviews, allowing us to work with you to implement changes to your plan
Simon Hawker, Managing Director and independent financial adviser St Albans, Hertfordshire said:
‘We believe our charging structure should be transparent so our clients know how much we are charging them and they understand what they will receive in return, before we start working for them. According to 1,000 Lonsdale Services clients who were asked I understand what I am being charged for, in relation to ‘advice’ and /or ‘service’ being offered by the Lonsdale Wealth Management, 63% of clients strongly agreed and 36% agreed with the statement. Similarly when asked - My adviser always provides me with sufficient information and /or documentation in order that I can make a fully informed decision,74% strongly agreed and 26% agreed.’
Many Lonsdale Services clients invest in Lonsdale Wealth Management’s range of Governed Portfolios managed by LGT Vestra in partnership with Lonsdale Services since 2015.
LGT Vestra win awards at Citywire Investment Performance.
In 2018, LGT Vestra was awarded the prestigious 'Best Cautious Strategy' and 'Best Large Firm' at the Citywire Investment Performance Awards. In addition, they were shortlisted for a further two awards: 'Best Balanced Strategy' and 'Best Growth Strategy.'
According to Citywire, "the awards are given to Investment Managers who deliver consistently great performance for their clients. The performance of all entrants is analysed by performance research firm Asset Risk Consultants (ARC) whose analysis is strictly quantitative and highly respected."
How does LGT Vestra make fund choices?
The central research team at LGT employs an active approach to fund selection. Their objective is to identify managers with an 'edge' who they believe can deliver consistent performance in line with LGT Vestra's performance expectations. The aim is always to build long-term relationships and thus promote a deeper understanding of the fund. Key attributes a fund must display are a repeatable investment process, consistent investment style and clear attribution whilst adopting a whole of market approach with both qualitative and quantitative analysis. All funds have passed a full due diligence process previously. In addition, every six months, the team do a more in depth review and may instigate a full due diligence review where required. The team employ a range of tools, including FE Analytics, Factset and Morningstar, to run liquidity, exposure and analysis on a monthly basis as part of the ongoing monitoring process.
How does Lonsdale Services manage investments?
The Lonsdale Services Investment Policy Committee supports our independent financial advisers and the independent financial advice they provide. The Lonsdale Services Investment Policy Committee meets and identifies the most suitable investment policies, develops asset allocation for the various client risk profiles and monitors and reviews funds to be added to our investment panel. Being fully independent is advantageous because we are not restricted to one investment provider, so we can choose a range of products from different investment groups. We review a fund’s charging structure and the mutual fund performance too.
How does Lonsdale Services research mutual fund groups and investment managers?
The Investment Policy Committee recommend mutual fund groups with sizeable funds under management. We prefer investment houses with a strong team bias, where strategists and analysts support the investment management teams. We use both qualitative and quantitative methods to research investment funds for our panel. We monitor and review the investment houses each year by sending out a questionnaire and scoring all the investment managers on our investment matrix. We also keep in regular contact with the investment houses so we are aware of any changes that may affect our investment view, such as a change in process or the departure of key investment personnel. Each Lonsdale independent financial adviser is responsible for reviewing at least one mutual fund group, and we subscribe to Morningstar to assist us.
‘The value of your investments can go down as well as up, so you could get back less than you invested’
