Charges and fees explained

How will charges and expenses affect my investment?

All funds are subject to charges and expenses. They are the costs of running the fund, including marketing and distributing it.

Charges and expenses reduce the potential growth of your investment. This means you could get back less than you paid in, particularly in the early years of your investment.

What are the ongoing charges?

All fund managers within the European Economic Area have to provide details of the ongoing charges for their funds, to help compare the costs of different schemes. The ongoing charges figure (OCF) is the charge you’ll pay over a year for as long as you hold your investment.The OCF for a fund is quoted on the 'Key Investor Information' document
and relates to the costs of running the fund. We deduct the OCF from the fund and the daily fund price reflects this deduction.

The OCF includes our Fund Management Fee (FMF), and for most funds the OCF will be the same as the FMF.

The FMF covers the following:

  • Investment management;
  • Accounting;
  • Valuation;
  • The manager’s own management costs.
  • Trustee/depositary fees and expenses;
  • Audit fees;
  • Custodian fees;
  • Regulator fees;
  • Registrar fees;
  • Payments to legal and professional advisers.

Some or all of any financial adviser commission may come out of the FMF.

However, if a fund invests in other funds not run by Legal & General, the OCF will be higher than the FMF, as it will include both our FMF and the charges and expenses for the other funds.

Where do you take the ongoing charges (OCF) from?

We may take the ongoing charges from any income the fund generates or from the fund’s capital (its assets). For some funds, we could take these charges from a combination of income and capital.

Where we take charges from income, if there’s not enough income to cover ongoing charges, we’ll take the rest of these charges from the fund’s capital. Any charges taken from capital reduce the fund's growth potential.

The 'Key Investor Information' document tells you the ongoing charges as a single figure. Look at 'Charges and fees for our funds' for the separate figures for the FMF and the other expenses. The prospectus tells you where we take these costs from - you can download a copy of the prospectus from our prospectus page.

Are there any other costs apart from the ongoing charges (OCF)?

Yes, there are other costs, and we take these from the fund’s capital:

  • Transaction costs relating to buying and selling the fund’s investments, including any commission we pay to stockbrokers for trading
  • Interest on borrowing
  • Any transaction taxes the fund may have to pay when it buys or sells assets (transfer taxes, for example stamp duty)
  • Stamp Duty Reserve Tax (SDRT) paid when a fund buys most types of UK company shares
  • Property funds will have ongoing management costs specifically related to managing properties, known as the Property Expense Ratio

 

If you buy through a platform you may also have to pay a platform fee – ask your financial adviser for details

We currently do not charge an initial fee on any of our funds

We currently do not have an exit charge on any of our funds

 

The Prospectus for each fund includes details on all charges, expenses and stockbroker commission arrangements. You can contact us to get a copy free of charge. The Prospectus is only available in English.

Risks:

Please remember the value of your investment and any income from it may fall as well as rise and is not guaranteed. You may get back less than you invest.