Investment charges

 

Cost is one factor you might want to consider when deciding where to invest your pension savings. Don’t look at cost in isolation; for example, a fund’s potential return may outweigh a higher annual fee. It’s important to take a balanced view of the fund you are investing in.

 

The fees charged for each fund are as follows:

 

Manager Fund Fees (%
each year)
Standard Life Deposit and Treasury Fund 0.30%
HSBC Amanah Fund 0.54%
Veritas Global Focus Fund 1.27%
BlackRock Diversified Growth Fund 0.68%
  UK Focus Fund 1.38%
  (50:50) Global Equity Fund 0.25%
  UK Equity Fund 0.24%
  Over 5 Year Index-Linked Gilt Index Fund 0.24%
  Over 15 Year corporate Bond Fund 0.25%
Blackrock/Standard Life SL Mobile Diversified Growth Fund 0.68%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The fees quoted are as at 30 September 2014.

 

How we've reduced the fees

The majority of the fees above have been discounted as the Trustee of the Telefónica UK Pension Plan has used its buying power to negotiate a lower fee for you.

 

Fees explained

For example, for every £100 you invest in the Standard Life Deposit and Treasury Fund you pay 30p in fees, each year.

 

Similarly, for every £100 you invest in the HSBC Amanah Fund you pay 54p in fees, each year and so on.

 

Whilst these seem like relatively small amounts, these become more significant as the value of your pension savings increase. For example, if the value of your savings is £10,000 and this was solely invested in the BlackRock Diversified Growth Fund you would pay £68 in fees, each year.

 

The fees shown in the table above pay for the administration of your pension savings, the management of the investments and other costs associated with running a collective investment fund (such as safe custody of the investments and accounting services).  The fee does not include any costs incurred when moving your savings from one fund to another or any transaction costs when the Fund Manager changes the stocks in the fund.  The more frequently you make switches the higher these costs will be.