Charges over time - how we worked it out
We partnered with independent experts at The Lang Cat to develop the value comparisons. We used the following criteria to find out how investing in an ii Trading Account, an ISA and a SIPP with ii's fair flat fees compares with other providers.
Analysis of charges and impact on portfolio values
Our analysis compares the potential impact of ongoing administration fees and trading charges for an ii Trading Account (General Investment Account) , a Stocks & Shares ISA and a SIPP. This is based on returns over a 30 year period for an individual with the profile described below. We assumed that investment charges, rates of investment growth and rates of inflation were the same across the board. The examples are not illustrations of what you might get back. This will always depend on your personal circumstances. Investment returns go down as well as up and you may get back more or less than any figure illustrated. If you apply to open a SIPP account with ii we will provide you with an illustration for your personal circumstances in line with the rules of the Financial Conduct Authority.
Total Trading Account, ISA and SIPP value after 30 years
Total charges after 30 years
For all example comparisons, our analysis assumes:
- A typical investor aged 35 with a combined account value of £200,000 (an accumulated ii Trading Account value of £50,000 , an accumulated ISA value of £50,000 and an accumulated pension pot of £100,000)
- Over a 30 year investment lifecycle, annual gross subscriptions of £10,000 have been added to the ISA and annual gross contributions of £10,000 have been added to the SIPP
- Two buy and two sell trades in each year per account (12 trades total for all three accounts), with associated dealing charges included
- Equal split in funds (Open Ended Investment Companies) and shares.
The investment returns reflect the following charges:
- Administration fees
- Dealing costs (assuming online transactions only)
- Fund manager charges, known as the Ongoing Charges Figure.
All competitor charges were taken from their published fees correct as at 1 January 2021. In the summary tables above, charges and portfolio values have been rounded to the nearest £100 for illustration purposes.
Ongoing Charges Figure (OCF)
- The analysis assumes a typical portfolio of active funds, with an average OCF of 0.66%.
- This OCF is taken from the investment each year, not from your ii Trading Account or ISA.
- The typical OCF used is the average fee charged by the active funds (not investment trusts) making up the ii Super 60 range, as published in their Key Investor Information Documents in October 2020. Each provider shown may offer a different range of investments.
For all comparisons shown, the Lang Cat assumed:
- Future investment growth will be at 5%. This is for illustration only and is not guaranteed. Investment returns can go down as well as up.
- An inflation rate of 2.00% throughout the period. Inflation is applied to regular contributions and to instances of fixed fees, but not used to adjust final projected values.