Fees and Costs Associated with Investments
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The investment fees and related charges which currently apply to the UCTRF investment portfolios are summarised as follows. They are expressed as a percentage of the amount invested, per annum – in practice, fees and charges are usually taken monthly (so the monthly fees can be estimated by dividing the figures shown here by 12). Estimated trading costs, such as stockbroker commission when shares are bought and sold, are included under “other costs and charges”. Remember that the investment performance figures shown to UCTRF members are after all these fees and charges have been deducted, i.e. they are net of all these fees and charges.
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Investment management fees p.a., including VAT (but excluding performance fees) |
Proportion of portfolio that is subject to performance fees* |
Other investment-related costs and charges, p.a. |
Total fees and charges p.a., excluding performance fees* |
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0.24% p.a. |
Less than 5% of total assets |
0.22% p.a.** |
0.46% p.a. |
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0.47% p.a. |
About 25% of total assets |
0.13% p.a.*** |
0.60% p.a. |
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0.73% p.a. |
Nil |
0.18% p.a. |
0.91% p.a. |
* It is very difficult to estimate how performance fees would increase the total fees and charges. As an indication, we can say that, if the Balanced Portfolio managers, who are subject to performance fees, were to do extremely well relative to the benchmarks (targets) set for them, this might increase the total fees and charges for the Balanced Portfolio by around 0.2% p.a. If the managers underperform their benchmarks, then the inverse can also apply, and performance fees decrease the overall costs as the manager refunds performance fees.
** Includes the “capital charge” of 0.25% p.a. levied by the insurer on 2/3 of the assets, which are housed in the smoothing only policy.
***Includes the Sygnia and AMX platform fees of circa 0.04% and 0.08% p.a. respectively.
These fees and charges have changed from time to time in the past and may change (up or down) in the future. The UCTRF Board is committed to ensuring that the investment portfolios offer good value for money to UCTRF members.
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