HFMCAM INTEREST RATES

NEW 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 earning around 3.95% per year as at August 2023, less a money management charge of 0.15%, giving an effective interest rate of 3.80%. This equates to an additional yield on the average portfolio of 11.4 basis points (0.114%) 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 11 August 2023, is set out below. This rate is set for GBP, EURO and USD, with different rates for assets custodied onshore and offshore.

Effective as of 11 August 2023

GBP
Onshore3.95%
Offshore2.85%

Other currencies interest rates will be determined with reference to average agent rates, including where they are negative. The Money Market Fund will be deducted from this rate only to the extent it does not lead to a negative net rate.

HFMC Asset Management continues to review the interest rate that our underlying custodian charges us at a minimum on a quarterly basis and we will provide notice to you of any changes with a minimum of five working days’ notice, by updating this website.

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