We regularly review the additional expenses for our funds as part of our commitment to provide a clear indication of costs to our customers. As a result of this review, we’re updating the additional expenses we show on factsheets, fund lists and illustrations for a number of our funds.

More about additional expenses

These are costs of running the underlying fund over the last year. They include things like:

  • Trading fees
  • Legal fees
  • Auditor fees
  • Administration fees
  • Other operational expenses1

They’re on top of the scheme annual management charge (AMC). We have no control over most of these expenses.

1 As at 1 December 2023 we’ve made a change to what is included in other operational expenses, and these can now include costs paid by us (Aegon) to third parties

Although we know the AMC in advance, we don’t know what the day-to-day expenses will be as they can change daily.

They are taken from the funds daily and the daily unit price reflects this along with any gains or losses made. This is what determines the value of a customer’s policy. This means that, regardless of the charges we disclose on fund factsheets and fund lists, members are charged the correct amount.

How we work out additional expenses

Every year we contact all external fund managers to ask them to provide details of the additional expenses for each fund over the last year. We then compare these with the expenses we disclosed the previous year and then round to the nearest 0.01%.

Where we display our additional expenses

These are shown on our fund prices and performance pages, our fund factsheets and illustrations.  These are the charges we show, which may differ slightly from the charges customers are actually paying day-to-day as expenses go up and down.

You can see our updated additional expenses in the PDF below.

What current investors need to do

Existing investors don’t need to do anything. If you’d like more information, please speak to your financial adviser. If you don’t have a financial adviser, you can visit moneyhelper.org.uk/choosing-a-financial-adviser to find the right one for you.

 

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