Establishment Charge:
The establishment charge is a percentage of each investment amount paid. It is deducted in arrears on each of the first 4 charge dates following payment of each investment amount and levied at 0.5% therefore a total of 2% per annum for one year.
Administration Charge:
An administration charge is also levied and is a percentage of the higher of
(1) Each Investment Amount
(2) Its associated Investment Value
Deducted on each of the first 20 Charge Dates, following payment of each invested amount. This amounts to 0.375% on each of the first 20 Charge Dates, following payment of each Investment Amount (1.5% per annum for 5 years).
Other Charges:
Service Charge – GBP 500 (or currency equivalent) per annum.
Fund management charges - usually 1% to 2.5% pa each year- depending on the funds chosen.
Dealing charges - made for each sale and purchase made within the bond at £35 per trade.
Adviser charges - additionally there may be an adviser charge to manage the portfolio, this typically can be between 1 and 1.5% per annum depending on the chosen advisers charging structure and service provided.
Ouch!