Additional Investment Expenses
Last modified: 25 September 2022
There may be additional expenses charged to our funds.
These expenses cover the costs incurred by the investment management company managing each fund and are taken from the value of the fund.
The level of these expenses may vary across funds and from year to year. Our fund fact sheets, which are available from your Financial Broker, provide you with the most up to date amount of the additional investment expense for a specific fund as provided to us by the investment management companies.
What do Additional Investment Expenses represent?
Our fund managers provide details of the ongoing expenses within our funds, which can help you to compare the costs of different funds. The additional investment expense figure is how much you’ll pay over a year for as long as you hold this fund.
Our Additional Investment Expense figure is quoted on each of our fund factsheet documents. This figure is updated every year and relates to the costs of running the fund. This expense is deducted from the fund and the daily fund price reflects this deduction.
Additional Investment Expenses can cover the following:
- Accounting;
- Valuation;
- Trustee/depositary fees and expenses;
- Audit fees;
- Custodian fees;
- Regulator fees;
- Registrar fees;
- Payments to legal and professional advisers.
Are there other fund costs apart from Additional Investment Expenses?
Yes, there are other costs, and we take these from the fund’s capital.
These costs are:
- Transaction costs relating to buying and selling the fund’s investments, including any commission our fund managers pay to stockbrokers for trading.
- Interest on borrowing if applicable.
- Any transaction taxes the fund may have to pay when it buys or sells assets (transfer taxes, for example stamp duty).
- Stamp Duty Reserve Tax (SDRT) paid when a fund buys most types of UK company shares.
- Property funds will have ongoing management costs specifically related to managing properties, known as the Property Expense Ratio.