Fees in Advance
Enabling schools to invest lump sum contributions from parents to pay for future school fees.
How does the discount work?
The Fund Manager will assess the redemption yields on a basket of gilts and decide an appropriate discount to apply.
How will future school fees be assessed?
The current fees will be entered into the illustration and the bursar and the parent will agree an inflation rate which the parent accepts as realistic. This is for illustrative purposes and is not a commitment. If the fees turn out to be more then the parent will pay the actual fee not the illustrated one.
What happens if the child does not pass the entrance exam?
The fund can be transferred to another school which participates in the Scheme or which runs its own scheme. If the child does not attend a school that participates in the scheme, then the balance of the original funds paid by the parent less any school fees and charges deducted will be returned.
What happens if a child leaves the school before the fund is exhausted?
If the child is transferring to another independent school then the fund can be transferred. If the child is moving into the maintained sector or is leaving education then the original amount paid less the fees already paid can be returned to the parent. If the redemption amount of the gilts is less than the amount paid then the parent will have to carry any loss.
What happens to any surplus remaining after all the school fees have been paid?
This remains with the school.
What are the costs?
There are two fees. 1) A set up and administration fee of £500 which will be paid by the school to the Administrator. They may choose to collect all or part of this from the parent. 2) An annual charge of 1% which will be deducted by the Fund Manager from the fund.
Can any parent pay money in advance?
No, only those for whom the school has a confirmed place subject to the child passing the entrance exam. They must also have paid the initial deposit required by the participating school.
Why is the Scheme attractive to parents?
The main benefit is the security of knowing that the fees, or a proportion of them, have been settled in advance. In addition, because it is the school which invests the cash that has been paid over by the parents, the yield on the basket of gilts is a gross yield, reflecting the charitable status of the school.
Who bears the investment risk?
The school bears the risk of the investments not returning the amounts anticipated. Parents will only be asked for additional funds if the school raises its fees beyond the level initially assumed.
Who is the Administrator of the Scheme
SFS Group were first incorporated in 1989, and has been focused since then on providing well targeted, value for money and uniquely designed financial protection products for parents and schools in the independent sector. SFS Group Ltd is a company registered in England No. 2418802 and regulated by the Financial Services Authority and can be found on the FSA register (www.fsa.gov.uk/register under reference 311801).
Who is the Fund Manager?
Brooks Macdonald Asset Management Ltd is the investment subsidiary of Brooks Macdonald Group plc, the specialist wealth management group that has been listed on AIM since March 2005.
They have offices in Mayfair, Manchester, Tunbridge Wells and Winchester and currently manage in excess of £1.239 billion on behalf of their private, pension and charity clients.
From their start in 1991 they were pioneers of fee-only fund management and remain one of the few to pass on institutional dealing terms to private clients. They were one of the first firms to embrace open architecture and give private clients full exposure to a range of leading Fund Managers and strategies.
They are authorised and regulated by the Financial Services Authority (184918) to provide a range of investment services. They are able to provide these services in the UK and Europe.
(Registered in England No. 3417519. Company Registered Office: 111 Park Street, Mayfair, London, W1K 7JL).
For Further information or if you have any questions, please contact Angus Cater at:
SFS Group Ltd, Spring Court, Station Road, Dorking, Surrey RH4 1EB
01306 746 300
angus.cater@sfs-group.co.uk