Important changes to your Annual Management Charge
Starting from February 2025, your Annual Management Charge will be based on the combined value of your ISAs or Junior ISAs with us. This change means that your overall charges may increase depending on your fund value.
Find out more...
Unit Linked Funds
Starting in February 2025, if your ISA or Junior ISA invests in one or more of our Unit Linked Funds, your Annual Management Charge will be based on the combined value of your ISAs or Junior ISAs with us.
This tiered approach means you’ll pay 1.5% on the first £5,000, 1% on amounts between £5,001 and £20,000, and 0.5% on any amount over £20,001. As your fund value grows, your overall percentage charge will decrease, giving you lower fees the more you invest.
The charge will be deducted directly from your account, and we’ve included more examples on how this works below to help you understand how this new tiered approach works. It is important you read the FAQs to help you understand these changes. You’ll see the specific new charges that you are paying in your next statement, which will appear as an Annual Management Charge (AMC).
Here's a breakdown:
| Tier | Total Unit Linked Fund Value | Annual Management Charge (AMC) | Example: Total Fund Value of £40,000, would be chargeable as follows: | AMC | Annual Charge Deducted |
| 1 | £0 - £5,000 | 1.5% | £5,000 | 1.50% | £75 |
| 2 | £5,001 - £20,000 | 1.0% | £15,000 | 1.00% | £150 |
| 3 | £20,001 and over | 0.5% | £20,000 | 0.50% | £100 |
| £40,000 | Overall AMC = 0.80% | £325 |
Unitised With-Profits Funds
Investments in the Unitised With-Profits Funds will be excluded when determining the total fund value that we use to calculate your charges for your ISAs and Junior ISAs. For investments in the Unitised With-Profits Funds in our ISA and Junior ISAs, we’re offering a special 12-month reduction in charges. This will lower your overall charge applied to Unitised With-Profits Funds in the ISA or Junior ISA by a fixed amount (0.25%). This special 12-month reduction will take effect from January 2025.
By way of an example, if you have a total amount of £25,000 invested in our Unitised With-Profit Fund, you would normally incur a charge of £375 (1.5%) each year to cover the costs of your policy. The special offer now means that you will be charged £312.50 (1.25%).
| Total Unitised With-Profits Funds Value | Charging Structure | Calculation Breakdown | Annual Management Charge |
| £25,000 | Original Charge: 1.5% Reduction: 0.25% | Original: £25,000 * 1.5% = £375 Reduction: £25,000 * 025% = £62.50 | £312.50 |
Why are we making these changes?
We're introducing a new charging structure for our Individual Savings Accounts (ISAs) and Junior Individual Savings Accounts (Junior ISAs) to ensure you get the most out of your investment with us.
We’ll automatically transition you to the new charging structure for both Unit Linked and Unitised With-Profits Funds
If you’re invested in our My Prime (ISA), you may currently receive a charge rebate, which reduces the overall charge that you pay. This rebate will no longer apply when we introduce these changes, and your overall charge could increase, depending on your fund value.
When will these changes take place?
For Unitised With-Profits Funds, this special 12 month reduction will take effect from January 2025. For Unit Linked Funds, these changes will take effect from February 2025.
To ensure we have a single customer record for you across all of your accounts, please contact us if you receive more than one letter about these changes. This might mean you have more than one customer record with us. By merging your records, we can combine the value of all of your Unit Linked Funds to calculate your overall charge, which could reduce your percentage charges.
If you think the product is no longer suitable, you have the option to switch to another fund, withdraw your holdings before these changes take effect or transfer your policy to another ISA or Junior ISA provider.
Unit Linked Funds Example
Mary has a total amount of £40,000 invested in Scottish Friendly (ISA) pots, and John has a total amount of £2,500. The table below shows how the charges are applied and that the overall % charge for Mary is lower than for John, because she has more money invested which is charged at a lower rate.
| Fund Value | AMC | Annual charge deducted |
| Mary's Fund Value | ||
| £5,000 | 1.5% | £75 |
| £15,000 | 1.00% | £150 |
| £20,000 | 0.50% | £100 |
| £40,000 | £325 | |
| Overall charge for Mary = £325 / £40,000 = 0.8% | ||
| John's Fund Value | ||
| £2,500 | 1.5% | £38 |
| £0 | 1.0% | £0 |
| £0 | 0.5% | £0 |
| £2,500 | £38 | |
| Overall charge for John = £38 / £2,500 = 1.5% |
Unitised With-Profits Funds Example
John has a total amount of £25,000 invested in the Unitised With-Profits Funds, he would normally incur a charge of £375 (1.5%) each year to cover the costs of his policy. The special offer now means that John will be charged £312.50 (1.25%).
| Total Unitised With-Profits Funds Value | Charging Structure | Calculation Breakdown | Annual Management Charge |
| £25,000 | Original Charge: 1.5% Reduction: 0.25% | Original: £25,000 * 1.5% = £375 Reduction: £25,000 * 0.25% = £62.50 | £312.50 |
Unit Linked Funds and Unitised With-Profit Funds Example
Mary has a total amount of £85,000 invested in Scottish Friendly ISA’s. This is split between £35,000 invested in Unit Linked Funds and £50,000 invested in Unitised With-Profits Funds. The table below shows how the total charge (AMC) for each investment is calculated based on our new pricing structure across both funds (Unit Linked Funds & Unitised With-Profits Funds) as well as the total charge for both combined.
| Fund Value | Charging Structure | Calculation Breakdown | Total Annual Management Charge |
| Unit Linked Funds: £35,000 | £0 - £5,000: 1.5% | £5,000 * 1.5% = £75 | |
| £5,001 - £20,000: 1.0% | £15,000 * 1.0% =£150 | ||
| £20,001 and over: 0.5% | £15,000 * 0.5% = £75 | ||
| £300 | |||
| Unitised With-Profits Funds: £50,000 | Original Charge: 1.5% | Original: £50,000 * 1.5% =£750 | |
| Reduction: 0.25% | Reduction: £50,000 * 0.25% = £125 | ||
| £625 | |||
| Combined Value: £85,000 | Unit Linked Funds: £300 | ||
| Unitised With-Profits Funds: £625 | |||
| £925 |
My Prime (ISA) Example
John currently invests in a My Prime (ISA). John’s total fund value is £15,000 and he invests £100 per month, all in Unit Linked Funds. This makes him eligible for the current charge rebate. The table below shows John’s existing charges with the rebate, and charges without the rebate based on the new charging structure
| Details | Current Structure (With Rebate) | New Tiered Structure (No Rebate) |
| Fund value | £15,000 | £15,000 |
| Initial charge | 1.5% of £15,000 = £225 | Tier 1: 1.5% on £5,000 = £75 Tier 2: 1.0% on £10,000 = £100 |
| Rebate (applied if policy value is more than £2000 or you make contributions of at least £100 per month) | Charged reduced to 0.5% of £15,000 = £75 | No rebate |
| Total Charge | £75 | £175 |
Frequently Asked Questions (FAQs)
Read our Frequently Asked Questions to help answer any queries you might have.
Got questions? Get in touch
Our Glasgow-based Customer Service team is available to help you. Find out how to email us, write to us or speak directly to a member of the team below. Whatever your query, we'll provide a friendly greeting and our best customer care.
You may also be able to find the answer to your question in our FAQs section below.
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Write to us
Scottish Friendly Assurance Society Ltd
Galbraith House
16 Blythswood Square
Glasgow
G2 4HJ