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Charges

Charges and costs can have a real impact on the returns that you get from a fund so it's important to know what you will pay when you invest. Here we try to make it as clear as possible.

We are simplifying our charges

On 1 December 2020 and 1 March 2021 we are making changes to our fee structure so that investors have a clearer view of the costs of their investments. Neither of these changes will result in higher fees for our investors. On 1 December 2020 we introduced discounts for our largest funds and from 1 March 2021 we will consolidate our various charges into a single annual fee so that you have a clearer view of the costs of your investments. Find out more and see our FAQs here and to view a list Before & After fees click here.

What charges and costs will you pay for investing in a Schroders' fund?

Charges and costs Paid by investors

Ongoing charge (including the Annual Management Charge)

This covers the Schroders Annual Charge, costs for holding underlying funds and extraordinary costs. It does not include payments to your financial adviser and/or any other firm through which you invest. You pay for these services directly.

Yes

Portfolio transaction costs

These are the expenses incurred by the fund when buying and selling assets on behalf of its investors. Portfolio transaction costs are made up of the broker commissions and stamp duty incurred as a necessary part of buying and selling the funds’ underlying investments in order to achieve their investment objectives. In the case of shares, portfolio transaction costs are paid by the fund on each transaction.

Yes

Entry charge

Otherwise known as ‘initial charge, this may be taken from your money before it is invested. From 1 Jan 2013, it does not include commission to advisers, but platforms or execution-only brokers may take a percentage.

No

Exit charge

May be taken before the proceeds of your investment are paid out. Very few funds will have an exit charge.

No

Performance fee

Performance fees are charged separately as a way of rewarding the investment manager for superior returns or for outperforming specified targets. Schroder UK Dynamic Absolute Return fund is the only fund that currently charges a performance fee.

One fund only

Our funds are all single priced - with a single priced fund there is a single price for buying and selling units or shares in the fund on any one dealing day. Single-priced funds can swing the single price of a fund unit upwards when there are more buyers than sellers of fund units or shares or downwards where there are more sellers than buyers of fund units or shares.

Dilution - investors in a fund can be adversely affected by other investors subscribing or redeeming from a fund. This effect is known as dilution. Dilution occurs when large deals in and out of a fund cause the fund manager to buy or sell the underlying investments of the fund thereby attracting trading costs which are borne by the investors in that fund.

Swing pricing - is a mechanism to reduce dilution and protect ongoing investors. It aims to ensure that investors subscribing or redeeming from a fund bear a portion of the trading costs, i.e. the underlying spreads and transactions costs. Each fund has a swing factor, also known as a anti-dilution adjustment, which is an estimate of the underlying dealing spreads, transaction charges, and taxes.

See a detailed breakdown of the charges and costs of our funds including the Schroders Annual Charge from the 1 March 2021 

Other Resources

Each year we publish an Assessment of Value for all the funds managed by Schroders Unit Trust Limited. It’s available to view here.

Visit the Investment Association website to access further information about charges and costs on funds.