Enhanced disclosure of fund charges and costs

On this page you'll find a guide to the fund charges and costs of our UK Growth Fund and Managed Growth Fund.

This information should further explain the charges detailed in the Key Investor Information Documents (KIIDs) for each fund. You can also find more information on investment charges and costs on The Investment Association's website.

One-off charges taken before or after you invest

Entry charge

This is the maximum that might be taken out of your money before it is invested. For example, if you invest £50, an entry charge of 4% means £48 of your money will be used to buy units in the fund. It covers the costs of setting up your investment.

Exit charge

There is no exit charge for these funds.

Charges taken from the fund over the year

Ongoing charges

This is based on actual expenses for the year ending 30 November 2021. It covers all aspects of operating the fund during the year, including fees paid for investment management, administration and the independent oversight functions. Where the fund invests in other funds, the figure includes the impact of the charges made in those other funds.

Charges taken from the fund under certain specific conditions

Performance fee

No performance fee is charged.

Details specific to each fund

You'll find more details for our UK Growth Fund and Managed Growth fund below.

UK Growth Fund
Portfolio transaction costs

On average, over the last two years, the fund has incurred broker commissions of 0.52%, as a necessary part of buying and selling the fund's underlying investments in order to achieve the investment objective.

In the case of shares, broker commissions are paid by the fund on each transaction. In addition, there is a dealing spread between the buying and selling prices of the underlying investments. Unlike shares, other types of investments (such as bonds, money market instruments, derivatives) have no separately identifiable transaction costs; these costs form part of the dealing spread. Dealing spreads vary considerably depending on the transaction value and market sentiment.

Comparing portfolio transaction costs for a range of funds may give a false impression of the relative costs of investing in them for the following reasons:
- Transaction costs do not necessarily reduce returns. The net impact of dealing is the combination of the effectiveness of the manager's investment decisions in improving returns and the associated costs of investment.
- Historic transaction costs are not an effective indicator of the future impact performance.
- Transaction costs vary from country to country.
- Transaction costs vary depending on the types of investment in which the fund invests.
- As the manager's investment decisions are not predictable, transaction costs are also not predictable.
Managed Growth Fund
Portfolio transaction costs

On average, over the last two years, the fund has incurred broker commissions of 0.42%, as a necessary part of buying and selling the fund's underlying investments in order to achieve the investment objective.

In the case of shares, broker commissions are paid by the fund on each transaction. In addition, there is a dealing spread between the buying and selling prices of the underlying investments. Unlike shares, other types of investments (such as bonds, money market instruments, derivatives) have no separately identifiable transaction costs; these costs form part of the dealing spread. Dealing spreads vary considerably depending on the transaction value and market sentiment.

Comparing portfolio transaction costs for a range of funds may give a false impression of the relative costs of investing in them for the following reasons:
- Transaction costs do not necessarily reduce returns. The net impact of dealing is the combination of the effectiveness of the manager's investment decisions in improving returns and the associated costs of investment.
- Historic transaction costs are not an effective indicator of the future impact performance.
- Transaction costs vary from country to country.
- Transaction costs vary depending on the types of investment in which the fund invests.
- As the manager's investment decisions are not predictable, transaction costs are also not predictable.

Pricing policy note

We operate a single pricing methodology for these funds and reserve the right to charge a dilution levy to protect your investment from the costs of buying or selling investments that result from large investors joining or leaving the fund.

While Scottish Friendly reserves the right to apply a dilution levy, we have never done so in either fund, since their launch.

The amount of any such dilution levy is calculated by reference to the estimated costs of dealing in the underlying investments, including any dealing spreads and broker commissions.

If we impose a dilution levy on a particular investor or group of investors, this is paid into the fund and helps to protect your investment from the costs of the resultant transactions.