Fund charges and costs
The AXA IM UK Commitment to its Customers
We aim to meet and exceed wherever possible the standards of behaviour all customers are reasonably entitled to expect of an investment organisation – one that is committed to dealing with them in an honest, open, competent manner and with integrity.
We will endeavour to always be informed and understand client needs and be fully committed to helping each client to get the most out of their relationship with AXA IM UK.
Our fund charges and costs explained
AXA Investment Managers ("AXA IM")
This information on charges and expenses relates to AXA IM's Open Ended Investment Company (OEICs) and Authorised Unit Trusts (AUTs) as authorised by the FCA (referred to on this page as OEIC & AUT or our fund range).
The charges you pay are used to pay the costs of running AXA IM's OEICs & AUT. These charges can reduce the potential growth of your investment.
The notes below explain what these charges may be and the Cost and Charges Matrix lists the charges applicable to our fund range. These costs may vary from year to year.
For more detailed information regarding fund charges, please refer to the "Fees and Expenses" section of the current prospectus of any AXA IM, fund which can be accessed via our Fund Centre.
What is the entry charge/initial charge?
This is a charge that is deducted from the initial investment amount before it is invested in the fund.
There is no entry charge for our fund range in the retail shares/units.
What is the exit charge?
This is a charge that is deducted from the final investment amount before your investment is returned to you.
There is no exit charge for our fund range.
What is the performance charge?
This is a charge that is deducted from your investment amount if the correct criteria for charging a fee are reached by your investment manager.
There is no performance charge for our fund range.
What are the ongoing charges?
There are different charges and costs borne by our fund range each year. These are called "ongoing charges" and are used to pay for the running of the fund and cover all aspects of operating a fund during the year, including;
- Fees paid for investment management to the investment manager (AXA IM)
- Independent oversight functions
The proportionate ongoing costs of underlying funds, where applicable
These fees are known collectively as the Ongoing Charges Figure (OCF). The OCF is an industry standard way of measuring the aggregate effect of a number of these charges.
The OCF is expressed as a percentage of the daily NAV (Net Asset Value) of each fund share/unit class.
The OCF excludes the costs of buying or selling assets of the fund.
The OCF for each fund is calculated annually (as at 31st December) based on each fund's historic expenses for the previous year. This figure is monitored through out the year to ensure it remains appropriate, if not it will be updated. This figure may vary from year to year.
Each fund's OCF can be found in the KIID document; available from our Fund Centre.
When previously incurred expenses would not be a fair representation of the future costs of investing in the fund, or where 12 months of information is unavailable, an estimated charge is calculated.
Example of ongoing charges collected by AXA IM funds (typical Z Class)
|Annual Management Charge (0.75%)||+||Operation and Admin Expenses (0.08%)||=||Ongoing Charge Figure (0.83%)|
More information about the AXA IM Fund ongoing charges
Annual Management Charge (AMC)
Investment in managed funds incurs an Annual Management Charge (AMC). This is the amount paid to AXA IM UK for professionally managing the assets of the fund. The AMC is reflected as a percentage that is deducted from your investment returns every year; however it is reflected in the fund's daily price.
Operation and Admin expenses
- Registration Fee - This is a fee paid in return for AXA IM UK paying or satisfying certain ongoing share/unit class registration and general expenses.
- Trustee/Depository Fee - This fee is charged by the fund's Trustee or Depository, whose main responsibility is to ‘safeguard’ the assets of a fund. The Trustee or Depositary also has a duty to oversee the manager’s activities and must act at all times in the best interests of the investors.
- Custody (safe keeping) Fee - This fee is charged by the fund's custodian who is appointed by the Trustee/Depositary to hold the assets on behalf of the fund.
- Custody Transaction Fee - Represents transaction expenses incurred by the custodian of the fund for fund assets.
- Audit Fee - Fees and expenses charged by the fund's auditors in respect of their independent audit of the fund's financial statements as well as any other related services.
What other charges should you be aware of:
What are transaction costs?
In addition to the cost and charges mentioned above there are also costs incurred by all funds for buying and selling the securities held by the fund. These costs are charged by the companies (such as Brokers) that AXA IM UK are selling or buying assets to and from.
These costs are to pay various fees, including brokers fees, exchange costs, stamp duty and other taxes (“explicit costs”) as well as, an assessment of the cost for entering or exiting the market (“implicit costs”).
For ease we have included all costs with our Cost and charges Matrix.
Please note: that all costs and charges shown within the cost and charges matrix are as of a point in time that has passed and may not be the most up-to-date figures.
Pricing policy note
AXA IM operates a single pricing methodology, with a potential for a swing price. A swing price is used to protect your investment from the costs of buying or selling investments that result from a large investment joining or leaving the fund. Please see the Prospectus for details.
AXA IM are following the Markets in Financial Instruments Directive (“MiFID II”) which states that firms are obliged to provide clients with appropriate information about costs and charges.
Please follow this link to find out more.