Wealth manager Atomos has increased its client fees following changes to its investment proposition.
In an email sent to advisers, seen by FTAdviser, Atomos' head of investments Haig Bathgate said changes affecting clients that hold an Atomos investment product will result in a fee increase for some.
Bathgate noted that the increase will be “small” as a result of some components of the fee, such as the annual management charge being higher than previously.
Other components of the fee, such as the transaction charges, will be slightly lower according to the firm.
The exact fees will vary on a case-by-case basis, but Bathgate said it is estimated that the maximum clients could be charged annually is 1.02 per cent of the total value of investment, inclusive of all fees and transaction costs.
This is in addition to an advice fee in some cases.
The increase is a result of Atomos’ recent investment deal with WTW, formally known as Willis Towers Watson.
The deal, announced in November 2022, will see Atomos clients gain access to fund managers not usually available to retail clients, access to WTW’s “thought leadership”, as well as its investment management and risk control expertise.
Other changes
Atomos, which rebranded from Sanlam Wealth in September, has said fund names will be changed shortly as a result with IFSL Sanlam OEIC becoming IFSL Atomos OEIC.
In addition to this, from April 21 the funds will move from being primarily invested in direct investments, to being invested in other funds.
Atomos said it believes this will be beneficial “because investing in funds will reduce direct stock risk and help remove style biases (ie, to growth and value), in order to help provide more consistent returns throughout the investment cycle".
Atomos has also said its strategy will focus on investing sustainably and environmental, social and governance factors will influence decisions taken.
“Our investment philosophy is that sustainable investments are ultimately long-term drivers of economic returns,” Bathgate said.
A further change is to be made in relation to reporting, with natural income distribution by the funds to be made on a half yearly basis rather than a quarterly basis.
Atomos said if required, it can facilitate payments of capital if needed for budgeting purposes.
Advisers who have queries on any of the changes have been advised to contact their portfolio manager for further information.
jane.matthews@ft.com
