Custody Fee

Custody Fee is a type of fee paid to a brokerage firm for the services associated with taking care of your investments. Fees vary by firm and account type; they will usually be automatically deducted from your account on a regular basis.

 

The monthly custody is charged on the average daily value of the account for the period. Example: The fee on the 1st day of the month is for account values in the previous month.

 

The fee calculations is the annual rate, pro rata for the days in the charging period, multiplied by the average daily value:

 

Example:

0.25% (annual rate) * (30/365) (pro-rata) * £3,357,292.67 [average daily value] = £689.85

 

For custody fees, the recipient is determined as the current active investment manager where available, otherwise the account owner themselves as a DFM.