Portfolio charges & VAT
Risk Warning
This content is for users of the Wrap Investment Hub and must not be relied on by anyone else. The value of investments can go down as well as up and may be worth less than originally invested.
Model portfolio charges and frequency options
Model portfolio ongoing charges are calculated daily and accumulated before being deducted from customer’s investments at a frequency selected during the configuration stage when your access to the Investment Management Hub is initially set-up.
You can choose from the frequency options outlined in the table below:
| Frequency | Payment date |
|---|---|
| Monthly | 25th of month |
| Quarterly | 25th of March, June, September and December |
| Half Yearly | 25th January and July |
| Yearly | 25th July |
Charges are deducted from customer investments on or around the 18th day of your chosen frequency and sent to your bank account on the 25th
If a customer starts investing in a model portfolio in the middle of a charging period they will only pay charges for part of the period.
Example: If your chosen frequency option is monthly and the charge deduction date is the last day of the month, and a customer starts to invest in the middle of the month, they will only pay charges for the days of the month they have been invested in the model portfolio.
Similarly, if a customer exits the model portfolio midway through the month they will only pay for the period that they were invested in the model portfolio.
If a customer starts investing in a model portfolio in the middle of a charging period they will only pay charges for part of the period.
Example: If your chosen frequency option is monthly and the charge deduction date is the last day of the month, and a customer starts to invest in the middle of the month, they will only pay charges for the days of the month they have been invested in the model portfolio.
Similarly, if a customer exits the model portfolio midway through the month they will only pay for the period that they were invested in the model portfolio.
You can view the value of model portfolio charges that have been deducted from the customer’s investments in the model portfolio fees report. www.abrdn.com/wrap-investment-hub/help/client-reporting
Deducting model portfolio charges from a customer’s investments
Deducting model portfolio charges from customer’s investments
With the exception of an ISA tax wrapper, model portfolio charges are deducted from the model portfolio’s cash allocation and paid to your nominated bank account at your chosen frequency.
Please Note: It’s important to ensure that there is enough cash in the model portfolio cash account to pay for charges to avoid units being disinvested from funds. Units will be disinvested from the least volatile fund(s).
ISA tax wrappers
Model portfolio charges for ISA tax wrappers are deducted from the customer’s cash account on the Wrap platform and then transferred to the Hub cash account before being paid to your nominated bank account at your chosen frequency.
VAT on model portfolio charges
You can choose whether to apply VAT or not to your model portfolio charge during the configuration stage when access to the Hub is initially set up.
You can deselect VAT being applied to your model portfolio charge at any time by emailing hub_servicing@aberdeenplc.com requesting for VAT to be removed from your model portfolio charge.
Please Note: VAT is not applicable on charges for Offshore Bond tax wrappers invested in model portfolios.