How Are InvestEngine’s Management Fees Deducted?
- Management Fees: These are calculated daily and deducted monthly, a few days after the end of each month. You can see the fee as a transaction in your dashboard.
- Cash Reserve: Approximately 2% of your portfolio value is held as cash for fees. We only deduct what’s needed to cover Managed or LifePlan fees.
- Maintaining the Cash Balance: If the cash balance falls below 1%, we’ll sell a small part of your investments to top it back up. The cash reserve is decided by our Investment Committee and cannot be reinvested unless the portfolio is fully sold.
- ETF Fees: ETF providers (e.g., Vanguard, iShares) include their fees in the ETF's performance, so these won’t appear as transactions. The average fee in our Growth portfolios is 0.15% annually, which is factored into your total investment costs.