Investment options and charges

Charges

This amount is made up of a Fund Management Charge (FMC) - sometimes known as an Annual Management Charge - and Additional Expenses (Additional Expenses apply to the majority of plans but for some they may be zero).

The FMC is shown as an annual rate, however we deduct the charge from each fund on a daily basis, which has the effect of reducing its unit price.

Additional expenses

Additional expenses may be deducted from some funds. These include items such as custodian, third-party administration, trustee, registrar, auditor, regulator fees, and a performance fee if it applies.

Additional Expenses can increase and decrease, sometimes significantly. Although shown as an annual rate they’re taken into account when the fund’s unit price is calculated each day.

Plan rebate

We've agreed to provide enhanced terms to give you a rebate on some of the amount you have invested in each fund. The figure is the annual rate of the rebate, although the rebate is given to you as additional units in your fund each month. If you leave your employer, the plan rebate will remain in place.

What you pay

The Effective Total Annual Fund Charge is the FMC plus Additional Expenses, minus any plan rebate which applies.

The FMC and Additional Expenses are deducted daily, while the plan rebate is applied monthly. So over the long term, the actual net amount of the FMC and Additional Expenses, minus any discounts, should be close to the Effective Total Annual Fund Charge. However, it will be affected by factors such as:

• the period it has been measured over
• any single payments and transfer payments you make
• changes in the timing of your regular payments
• daily changes in fund values

For more information about costs and charges, including fund transaction costs, please see our dedicated charges page and select Trust Based Pension plan.