Some funds carry certain charges.
If a fund has a particular charge, you will see this disclosed on the Aviva Fund Centre. This charge is in addition to your product charges (which you will find details of in your policy document).
Below we have defined what the fund charges are, which depends on your product type. For example, if you are looking at bonds, check the ‘Life and pensions’ section.
Life and pensions
Extra management charge/additional yearly charge
With certain funds you’ll have to pay an extra charge; this reflects the extra cost of managing these funds. The charge you'll pay will vary depending on the fund you choose. For bond customers: for funds with a guarantee, the extra charge will only apply up to the guarantee point.
Fund manager expense charge (FMEC)
FMECs are additional charges that cover the fund manager’s expenses connected with buying, selling, valuing, owning and maintaining the assets in the funds. This charge is taken into account in the unit price. FMECs may vary from year to year.
Total additional yearly charge
This is the total sum of the extra management charge/additional yearly charge and any fund manager expense charge (FMEC).
This charge is taken into account in the buying or selling price (see ‘Price’ tab).
Fund manager initial charge
This is an upfront charge taken by Fund Managers from the amount paid into their funds. This is in addition to the purchase price of the fund and results in a reduced amount of units being purchased. For example, a £10,000 investment into a fund with a 5% initial charge will only purchase £9,500 worth of units/shares).
Negotiated initial charge
This is the amount you will be charged by the Fund Manager on purchases made through Aviva. We always look to get the best deals for our customers by negotiating with the Fund Manager to lower their upfront charges, usually resulting in a charge of 0%.
Fund management charges
Fund managers take charges that depend on the investments chosen. These figures may be shown as the ongoing charge figure (OCF), total expense ratio (TER), or for insured funds, simply the annual fund charge. These cover the charges made by the fund manager for managing the investment as well as expenses incurred by the fund. Please note these charges are variable and may change over time.
You can find details of charges for our Collective Investment funds in the Key Information Documents for the relevant fund and share class and additional information can be found in the Supplementary Information Document. You can also find the charges for our Collective Investment funds on the fund factsheets.
Details of what these fund charges mean and the other costs of investing can be found here.
Need some advice?
If you’d like a hand deciding where to invest your money, a financial adviser could help.
Find details of advisers near you at unbiased.co.uk