INVESTMENT STRATEGY
SMALL CAPS
These are the growth figures you
don’t want to see in your next ISA
Annual Platform Fees over 10 years*
£1,000
0.45%
£900
0.40%
£800
0.35%
£700
£600
0.25%
£500
£400
£300
Trustnet Direct
£200
£100
0
1yr
2yrs
3yrs
4yrs
5yrs
6yrs
7yrs
8yrs
9yrs
10yrs
*The graph displays platform fees plus the cost of 5 transactions per annum with Trustnet Direct compared with
platforms charging 0.45%, 0.40%, 0.35% and 0.25% per annum in platform fees. Assumes £15,000 new ISA limit
invested each year for 10 years and assumes 5% growth net of charges.
The good news is that if you invest the new ISA limit of £15,000 per annum over the next 10 years and it grows at 5% per annum
net of charges, you’ll have built a nest egg of over £198,000 tax-free.
The bad news is that platform fees can seriously damage your wealth, as the chart above shows.
At Trustnet Direct, we charge 0.25% in platform fees but cap it at just £250 max per annum (£200 + 5 trades at £10 per trade).
We may not be the cheapest on day one, but when your investments grow, your charges don’t.
So, if you want a premium platform, without the premium price tag, open your next ISA with Trustnet Direct.
Trustnet Direct does not provide advice on the suitability of investments. It is an execution-only service. If you are unsure
about the suitability of investments, seek independent financial advice.
The price and value of investments and their income fluctuates: you may get back less than the amount you invested.
Past performance is no guarantee of future performance.
Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.
Set your account up now at:
www.trustnetdirect.com
Trustnet Direct is a trading style of Trustnet Limited, Authorised and Regulated by the Financial Conduct Authority.
“Five years ago you would have found
that smaller company investment
trusts were sitting on much larger
discounts, which would have
affected their share price returns. A
combination of NAV growth and
discount narrowing would have led
to accelerated share price returns
and for those trusts that employed
prodigious gearing, the returns
would have been enhanced further.”
Today, these discounts have come
down somewhat, with the average
UK smaller companies fund sitting
7 to 8 per cent below NAV, which
Urquhart says is narrower than the
12-month average of 11 per cent. He
notes much of the narrowing took
trustnetdirect.com
TODAY, THESE
DISCOUNTS HAVE COME
DOWN SOMEWHAT,
WITH THE AVERAGE UK
SMALLER COMPANIES
FUND SITTING 7 TO 8
PER CENT BELOW NAV
place after the UK general election,
although there is a wide range of
discounts within the sector.
For example, Stuart Widdowson’s
Strategic Equity Capital trust,
which tops the sector over one,
three and five years, is currently
trading at a 7 per cent premium
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