Transaction costs

Find out how the transaction costs of our funds affect member pension pots.

What are transaction costs?

The funds we invest members’ money in incur costs when assets are purchased, sold, or lent by the fund.

These charges have an indirect affect on the size of a pension pot since they reduce the net investment returns of the funds. Brokerage fees, stamp duty, custodian fees, foreign exchange levies, and bid/offer spreads are all examples of transaction costs.

Breakdown of our transaction costs

The transaction costs for all of our funds are detailed below:

Investment fundManagement chargeTransaction costs
Global Investments (up to 85% shares) Fund0.5% 0.05%
Global Investments (up to 100% shares) Fund0.5% 0.06%
Global Investments (up to 60% shares) Fund0.5% 0.05%
Pre-Retirement Fund0.5% 0.04%
Ethical Fund0.5% 0.01%
Annuity Fund0.5% -0.01%
Shariah Fund0.5% 0.00%
Cash Fund0.5% 0.1%

Our other charges and how they reduce the more members save

Annual management charge

The only additional expense to members, other than transaction costs, is our annual management charge (AMC).

Our AMC is made up of 3 elements: an annual charge, a daily management charge based on the member’s annual pension pot value, and a rebate on the management charge (based on the member’s pot value). So the more members save with us, the less we charge. You can find out more about our AMC and rebate by going to our member costs and charges page.

Pension projections for all our investment options

You can visit the projection page of our member website for examples of how our charges affect the value of a pension pot over the short and long term.

Annual management charge

Learn more about our charges for members.

Investment funds

Learn more about our range of invesment funds in our member area.