Fund factsheets help - overview

Initial charge

Most unit trusts and OEICs levy an initial charge. This is a fee payable to the fund manager when you first invest. We have negotiated special terms with fund management companies which allow us to discount most, if not all, of the initial charge for over 1,700 funds.

Initial saving

This shows how much we can save you on the standard initial charge. For instance, if the initial charge was normally 5.25% and we offer a 5% saving you would actually pay an initial charge of only 0.25%. Please remember for dual priced funds there may also be a small difference between the buying and selling prices, known as the bid-offer spread and with single priced a dilution levy may be applied on the way in or out of the fund. For more details about the way in which savings are calculated see our Guide to Fund Prices, Savings & Yields.

Annual charge

The annual charge is levied by the fund management company to cover the cost of managing funds. They are normally deducted on a daily basis and reflected in the price of the units. This means that you will not see them shown on your statement and you do not need to pay for them separately.

Annual saving

When you buy funds, part of the annual management charge is usually shared with your broker through what is known as renewal commission. This makes absolutely no difference to the charges you pay; if you invest directly with the fund manager they simply keep the renewal commission themselves. We use part of the renewal commission to administer your account and return the rest to you by way of loyalty bonuses. Please note the loyalty bonus is not available for funds held through the Vantage SIPP.

Total Expense Ratio

The Total Expense Ratio (TER) represents the total annual costs involved in running a fund. The TER consists principally of the manager's annual charge, but also includes additional costs for other services paid for by the fund, such as the fees paid to auditors, registrars and the financial press.

Launch Date

The date the fund was launched.

Launch Price

The price of the fund on the first day of trading.

Sector

The funds sector is the category a fund falls into. These are usually determined by the Investment Management Association (IMA).

Fund Size

This is the total value of all the individual investments which have been made into the fund.

No. of holdings

The number of individual holdings a fund holds.

Fund Type

Here we separate funds into two broad categories, Unit Trusts and OEICs. Unit Trusts have two prices; the offer (or buying) and the bid (or selling) price. The difference between the two is known as the bid-offer spread and includes the initial charge plus all the costs to buy and sell a unit. OEICs on the other hand have one price for buying and selling. The initial charge is simply added to the price when shares are purchased. See our free Guide to Fund Prices, Savings & Yields for a more detailed explanation of fund types.

Type of Units

Funds offer either accumulation units or income units or a choice between the two. With accumulation units income is reinvested within the fund, increasing the price of each unit. If you buy income units any income is paid into your account where it can be withdrawn or reinvested depending on the type of account you hold and the instructions you have given us.