The 321 investment account is the fruition of Abacus’s collaboration with Jersey-based Brooks Macdonald International, which has built the account exclusively for Abacus.
The charges on the 321 account are 3% for an initial lump sum investment, for regular savings the fee is equivalent to two months of contributions, and there is a 1% ongoing adviser fee. Further lump sum payments also incur a 3% charge.
Brooks Macdonald also levy a charge on each account of 0.5% annually.
Kay Pindoria, joint founding partner of Abacus Financial Consultants said: “Brooks Macdonald’s investment manager charge is discounted to 0.5%pa due to their strategic partnership, with the only other costs being the underlying fund management charges which are circa 0.6% for a balanced managed portfolio service.
“There are no custodian or transaction fees.”
The minimum monthly contribution is £1000, $1000 or €1000 while the minimum top-up there after is £200, $200 or €200 on a monthly basis. Lump sums of £10,000, $10,000 or €10,000 can be added at any time.
There are few other restrictions on the 321 account with no exit penalties, no contractual term or missed payments fees.
Abacus have sought to differentiate their business through a willingness to charge up front fees, as opposed to taking commission from product providers in anticipation of change from the UAE’s Securities and Commodities Authority.
Prospective clients will still be expected to meet their Abacus adviser and meet the usual high net worth client profile to be suitable.
“We are going up against the life companies,” explained Abacus’ other joint founding partner Graham Thornton. “It is a decent alternative to the traditionally sold products which we felt have been expensive for the premiums which will have been levied.
“For the 321 account we have stripped away all the unnecessary costs. It is like a bank account – it is very simple fee structure.
“We know why people shy away from [charging)] fees. This product will set us apart. We are proud of what we do and we think this fee is fair for what we do.
“The account is transparent, and it will stand up to scrutiny.”
Con Lillis founded Abacus in 2013 with Graham Thornton, Kay Pindoria, Rupert Connor and Bob Symons. It struck Brooks Macdonald’s first international strategic alliance in November 2016, which gave Abacus clients access to Brooks’ discretionary multi-asset, direct equity and bond strategies.
