What is the difference between the TER, AMC and OCF?

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On our fund factsheets, we’ve tried to simplify the terms we use to describe charges relating to funds. So, for instance, on our Aegon Retirement Choices and One Retirement fund factsheets we show ‘fund charge’ and for our older pension and life products we show the ‘total charge’. On our prices and performance pages we also show industry standard terms like AMC, TER and OCF.

We appreciate that you may want to compare our charges, so the table below explains what terms we use and where.

Name of charge Where we show it Product charge Fund management fee Additional fund expenses/charges*

Definition

 

Covers the service Aegon provides**

Covers the cost of managing and governing a fund

The variable costs associated with managing a fund

Disclosable yearly charge/expenses

Fund factsheets

Yes

Yes

Yes

Annual management charge (AMC)***

 

ARC and One Retirement investment lists

 

Yes

 

Total expense ratio (TER)****

 

ARC and One Retirement Investment lists

 

Yes

Yes

Ongoing fund charge (OCF)****

 

ARC and One Retirement Investment lists

 

Yes

Yes

* These include things like dealing costs and broker fees which can't be predicted in advance, so what investors pay may vary slightly from the amount quoted on our factsheets.

**On our factsheets we show a standard product charge. It may be different from the charge you actually pay. This is particularly likely if you’re an Aegon Retirement Choices or One Retirement investor.

***This table shows what the AMC means on our fund lists.. However, on your statement, it means all the charges associated with your product i.e. it includes all product and fund-related charges.

****The OCF is very similar to the TER, but the OCF includes performance fees and one-off charges. UCITs regulated funds quote an OCF figure, while other funds quote a TER.