Understanding investment charges

Depending on whether you invest in a Sterling Bond or in an ISA or Investment Account, there will be specific charges for the different funds you invest in. Here's a description of the various charges and expenses that make up the total charge.

Fund manager charges

Fund expenses

These are deducted from the funds to pay for the day-to-day activities of managing each fund and are reflected in the unit price of the fund.

These include expenses, taxes, duties and other charges incurred in the buying, selling, valuation, management and maintenance of the fund’s investments including auditors’ and custodians’ fees. 

Fund expenses are not fixed as they change each day based on what the fund has bought or sold on a particular day.

Annual management charges

Some of the funds have an annual management charge, which is a percentage of the value of the units in the fund.

It is deducted from the fund every day before unit prices are calculated. 

They could change in the future.

Initial charges

There may be an initial charge on some funds before we buy units. This may be a one off charge or a difference between the daily buying and selling price which is often known as a bid/offer spread.

Fund transaction charges

On a day when you cash in your plan, more money may be moving out of the fund (or any of the funds it invests in) than into it. In this case, some of the assets of the fund (or funds) will have to be sold and the value of your plan may be reduced to reflect the impact on the fund unit price of the costs and charges associated with the sale.

Our charges

Sterling Investment bond charges

We take a fund based charge. This is a percentage based on the value of your plan and the options you chose when you took out your plan. For details please refer to your plan's key features, key features illustration and your terms and conditions.

Sterling ISA and Investment Account charges

We take a Sterling Yearly Charge and a Sterling Custodian Charge based on the value of your account. For more information about these, please refer to your yearly statements and the latest terms and conditions.

Investment fund charges - December 2016

We have reviewed the charges that apply to funds managed by Threadneedle Investment Services Ltd to ensure they are in line with the investment expenses we incur in managing these funds. Following the latest review, the charges on the following funds available for Investment Bonds have changed from 28 November 2016.

Previous charge (%) New charge (%)
Sterling Deposit & Treasury
1.23
1.25
Sterling Deposit & Treasury 2
0.23
0.25
Sterling Distribution
1.19
1.17
Sterling Distribution 2
0.19
0.17
Sterling Far East & Japan
1.14
1.24
Sterling Far East & Japan 2
0.18
0.24
Sterling Managed
1.18
1.17
Sterling Managed 2
0.18
0.17
Sterling Property
1.36
1.35
Sterling Property 2
0.41
0.35

In making these changes, we believe that our funds continue to offer good value to our customers. For full details of the funds available to you, and the charges that apply, please click here.