HFMCAM INTEREST RATES

This information is only relevant where HFMCAM provide custody services to you directly. It does not apply to custody solutions where you contract directly with a platform, such as Transact.

As a business we think that it is wrong to skim client interest – we believe that this is an investment return just like a dividend or distribution. Some investment platforms do retain a portion of clients’ interest. The rules allow it.

We seek to pass on all interest to clients for (instant access) pooled cash that we receive at HFMCAM from our sub-custodian. Transact follow a similar approach to us.

As part of new advice and your ongoing periodic suitability assessment provided by your regulated adviser our interest rate and money management charge is disclosed to you as part of the overall cost and benefit of HFMCAM providing custody solutions to you. They will have disclosed this as a monetary amount in your Costs and Charges documentation. HFMCAM makes no deduction from the interest received from the underlying custodian. We match it and pass it on in full to you.

The average portfolio custodied with HFMCAM is valued at around £565k, has 3% invested in cash and is expected to earn around 3.70% per year as at September 2024, less a money management charge of 0.15%, giving an effective interest rate of 3.55%. This equates to an additional yield on the average portfolio of 10.65 basis points (0.11%) when compared to a service that does not pass interest on to its clients once the money management charge is considered.

The new HFMCAM Matched Interest Rate, effective as of 9 September 2024, is set out below. This rate is set for GBP, EURO and USD, with different rates for assets custodied onshore and offshore.