Last Updated on 3rd July 2025
Chase Buchanan’s global teams focus on ensuring each client is investing tax-efficiently with full oversight of the costs of managing their investment portfolios. One of the common issues we uncover during investment portfolio reviews and fee comparisons is the presence of ‘hidden’ costs that aren’t always understood.
As a fundamental, every investor should know how much they are paying per annum in relation to the value of the funds being managed. That said, we recognise that it can be difficult to understand true investment portfolio costs or to assess whether investment fees are competitive.
In every case, step one is to schedule a portfolio review, during which we can analyse costs and charges, and share insights into portfolio performance, risk exposure and how well investments align with your personal circumstances, goals and financial position.
The Role of Portfolio Reviews in Evaluating Investment Charges
While an investment portfolio review may sound like an unnecessary use of your time if you are generally happy with your investment performance and returns, in reality, this is a necessary task that should be conducted regularly and at least annually.
Even if your products are performing well, you’re making sound returns, and you are confident that your investments are being handled in the right risk exposure category, portfolio reviews are essential to the continued health and growth of your portfolio.
Risks change, climates evolve, plans progress, and markets expand. Therefore, if you want a clear overview of the ideal investment strategies that align with your future goals, you need to engage in a comprehensive review to assess whether there are ways to maximise your returns.
Changes to tax legislation and alterations to your tax residency status may also significantly impact the stability and tax efficiency of different investment vehicles. This means that a timely review can be necessary to ensure that you continue to structure your portfolio in a future-proof way.
Another priority is to analyse your costs. Many Chase Buchanan clients are surprised at how revealing a cost comparison can be. A considerable proportion of investors aren’t clear about their fees per annum, how they are structured, and what impact they have on net returns.
Therefore, being tax-efficient and active in your investments isn’t just about the nature of the products or funds you select; it is about safeguarding your assets to ensure they are performing to your benefit and in your interests.
How Investment Fees and Charges Impact Your Returns
Financial advisers and wealth managers must disclose the fee basis before they begin managing your portfolio.
However, there is often the potential for ‘hidden’ costs where investors don’t understand where or how often a fee is being charged or how it is calculated. It is easy to focus on investment returns and growth figures, but high fees can have a marked impact on your net investment returns every year. Here are a couple of basic illustrations:
- You invest £100,000 today, with a 4% annual return. Your wealth manager charges 2% in yearly fees, and in 10 years, you have earned £21,899 on your investment. If you had opted for an independent investment portfolio review and switched to an adviser charging 1% per annum, that return would have increased by £12,494.
- You invest the £100,000 in a mutual fund, with a 1.5% annual charge. In the same ten years, you will have paid £15,000 in fees. Had you invested in a fund with, say, a lower 1.2% fee, you would have paid £3,000 less.
These theoretical figures show how even fees that appear low can quickly stack up and take a proportion out of your returns. If you’re uncertain about your portfolio fees, don’t have a clear breakdown of how they have been applied, or aren’t sure whether you are paying more than you should be, it is time for a portfolio analysis.
Why an Investment Portfolio Cost Analysis is Essential for Efficiency
Chase Buchanan offers our clients access to our cost-comparison tools, which enable us to identify what you are paying and the impact on your investment portfolio. The benefits of doing so are significant, enabling you to:
- Identify the fees you are paying, including those that aren’t immediately apparent.
- Receive impartial advice about how those costs relate to the sector averages and whether you are potentially paying more than necessary.
- Tap into expertise around long-term investment products and whether more tax-efficient or higher return opportunities exist.
- Calculate the savings available by reducing your fees to see how this might boost your portfolio income.
- Understand the impact of hidden charges and how you can mitigate the implications for your investment portfolio returns.
As with all industries, there is a broad scope of advice and services on offer, with an equally vast contrast between the value for money provided.
In some cases, a portfolio review may identify that your fees are reasonable and competitive, but we often find the opposite. Working with an adviser or wealth manager should always be based on trust. Investors can rely on that trust and therefore give their adviser free rein to change fees or charge uplifts when a negotiation would be advantageous.
It’s worth remembering that an adviser manages your portfolio in return for professional fees, and that over time, portfolios diversify and expand. This can mean that pre-existing fee structures remain in place, even if they no longer remain beneficial and that any reputable adviser will encourage you to schedule a review to ensure you remain satisfied with the arrangements.
Understanding Common Types of Investment Portfolio Fees
The biggest issue with investment portfolio fees is that these can vary significantly depending on the products or funds you own or invest in. Most investors are busy people and simply do not have the time to conduct a thorough analysis of their annual statements.
This complexity leads to situations where investors are paying far in excess of what would be reasonable and are reliant on investments to fund their retirement aspirations or life goals while not receiving the full value of returns they should be expecting.
To add clarity and help identify the nature of charges shown on annual statements, some of the most common types of fees are as follows:
- Advisory or management fees: The professional fees charged for selecting a fund or building a portfolio.
- Annual expenses: Usually a yearly charge as a percentage of your portfolio.
- Exit fees: Costs incurred when selling certain types of assets.
- Investment management costs: Fees charged for selecting new investments for your portfolio or researching new opportunities.
- Loads or transaction fees: Charged when you instruct your adviser to make a transaction, such as selling fund shares.
- Performance charges: Applied by some funds in addition to annual fees when specific targets are reached.
- Platform fees: Charges levied by online fund platforms.
Some fees are payable directly, some are deducted from your fund, and others are charged when a specific event or transaction takes place. It is, therefore, likely that fees are being taken from your portfolio value without your needing to make a bank transfer or offer any direct approval.
Schedule an Investment Portfolio Review With Chase Buchanan Private Wealth Management
Chase Buchanan Private Wealth Management provides professional wealth management services to clients around the world from our offices across Europe, Canada and the US, supported by our Administration Centre in the UK.
Our investment portfolio reviews ensure that your investments are positioned for optimal stability and returns and that your fees are competitive, reasonable, and transparent.
Contact us today to schedule your portfolio review and cost analysis and take steps to ensure your investment funds are aligned with your priorities and expectations in the best possible way.
All investments carry risk, including the potential loss of capital. You should carefully consider whether investing is suitable for you, taking into account your personal circumstances, financial situation, and risk tolerance.
*Updated June 2025
