Tiered Annual Service Fee
Based only on all principal amounts of the Fractional Bonds invested. Fees are collected on a pro rata basis when a borrower makes an interest payment (this is either on a quarterly, semiannual or annual basis).
Example calculation:
If you held £50,000 in principal amounts of Fractional Bonds you would be charged 1% on the first £20,000 and 0.75% on the next £30,000 giving an effective annual fee rate of 0.85%
if you held £120,000 in principal amounts of Fractional Bonds across all of your WiseAlpha accounts (individual, SIPP, corporate) you would be charged 1% on the first £20,000, 0.75% on the next £30,000, 0.5% on the next £50,000 and 0.25% on the final £20,000 which would give an effective annual fee rate of 0.60%
Sale Fee
A 0.25% Sale Fee is taken only when you want to liquidate all or part of your portfolio. Transactions (buying and selling) employed by Robowise in order to diversify and maintain your portfolio do not incur Sales Fees.