The value of your investments can go down as well as up. Losses can exceed deposits on margin products. Please ensure you understand the risks.
The service fee is an annualised fee that is paid for having SaxoSelect manage your money. It is taken at the end of each quarter on a pro rata basis. We take the daily value of the portfolio and calculate a daily pro rata fee, to factor cash additions/withdrawals and daily performance. The sum of these daily fee amounts are then aggregated at the end of the quarter and charged, or until you withdraw from the portfolio.
For example, the Balanced Portfolios have a service fee of 0.9%. If the value of the portfolio on day one is GBP 100,000 then the service fee for that day is (100,000 x 0.009) /365 = GBP 2.466. If half of the capital is withdrawn the next day and there is a 0% return (meaning the new value is exactly 50%), then the fee for this day is halved to GBP 1.233. Each day these fee amounts are accumulated and then deducted at quarter-end.