The fee reserve is a small amount of cash set aside in your Vault and Treasury accounts, which is a percentage of your total deposits. Here’s how it works:
When you deposit, a percentage of the deposit is set aside to cover future fees.
Monthly fees are deducted from this reserve.
When you withdraw, a proportional amount is included in the withdrawal, reducing the need to sell from your investments.
The fee reserve isn’t the actual fees, but a pot from which we deduct fees monthly based on your daily balance.
Example:
Let’s say you deposit £10,000. We set aside a percentage of this into the fee reserve.
Your monthly fee is deducted from the reserve.
If you later withdraw 50% of your balance (e.g., £5,000), we take 50% of the reserve and include it in the withdrawal.