Standard Life Investments

Fund charges and transaction costs

Further Information about Fund charges and costs in Standard Life Investments UK Authorised Fund Range

When investors use Funds to invest in financial markets they are charged for the running of those Funds. All such Fund charges must be disclosed in a standard format in the Key Investor Information Document (KIID).

In addition, in common with other types of investors in financial markets, Funds incur costs as a necessary part of buying and selling underlying investments in order to achieve the investment objective. These transaction costs affect a Fund’s investors in different ways depending on whether they are joining, leaving or continuing with their investment in the Fund. As these costs are not disclosed as part of the KIID, we have detailed the information below in order to give investors full information and also to comply with industry best practice.

One off charges

Entry and exit charges

Entry charges are the maximum that might be taken out of your money before it is invested. This covers the cost of setting up an investment. No exit charges are applied across our Fund range. Details of the entry charges for each share/unit class of each Fund are detailed in the relevant prospectus and Key Investment Information Document (KIID). The entry charges shown in the KIID are maximum figures, in some cases you may pay less and these charges may not always be applied.

Example: If you invest £100, an entry charge of 4% means £96 of your money will be used to buy shares/units in the Fund.

Performance fees

We do not charge performance fees on any Funds within our range.

Charges taken from a Fund over a year

Charges relating to the operation of the Fund

The Ongoing Charge Figure (OCF) shows the annualised operating expenses of the share/unit class as a percentage of the average net asset value of the class over the same period. It is made up of the Annual Management Charge (AMC) and other expenses taken from the class over the last annual reporting period, such as depositary fees, audit fees, investment management fees, and administration fees. It excludes portfolio transaction costs, except in the case of an entry/exit charge paid by the Fund when buying or selling in another collective investment undertaking. The OCF can help you compare the costs and expenses of different Funds/classes.

The OCF is available for each share/unit class in the relevant KIID and factsheet. This figure may vary from year to year. In addition, the OCF will be published in each interim and annual report.

Costs relating to buying and selling investments

When buying or selling investments certain transaction costs are incurred. Standard Life Investments operates a pricing methodology which is designed to protect your investment from the impact of transaction costs incurred when other investors join or leave the Fund. These differ depending on the investment assets held in each Fund.

We operate a single swinging price methodology for our Fund range, in order to protect existing investors. This methodology considers both long-term and daily cash flows in determining the basis (bid/mid/offer) of the Fund on any particular day. This means that we reserve the right to adjust the Fund’s price to protect your investment from the impact of other investors joining or leaving the Fund.

The amount of any such adjustment is calculated by reference to the current estimated costs of dealing of all the underlying investments held by the Fund, including any relevant dealing spreads, broker commissions, or transfer taxes. The estimated percentage impact of these adjustments is detailed in the prospectus for each Fund. The actual adjustment may be different to these estimates.

We will normally adjust the price to the maximum extent possible when we consider the impact of the value of the net contributions or withdrawals is significant, which helps to protect remaining investors from the impact of any resultant transactions.

For further information please refer to Swinging Single Pricing.

Additional disclosure of costs associated with buying or selling investments

We have provided detailed information showing the Fund’s transaction costs incurred through the buying and selling of underlying investments. As described, a significant amount of these costs are borne by investors joining or leaving the Funds.

In the case of shares, broker commissions and transfer taxes may be 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 have no separately identifiable transaction costs and 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 in investing in them for the following reasons:

- we operate pricing methodologies which help protect your investment from the costs associated with other investors joining or leaving the Fund;

- 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 on performance as they depend on the manager’s investment decisions;

- transaction costs vary across countries and the types of investments; and

- transaction costs are incurred regardless of whether investment occurs via a Fund or direct to the market.

The tables below show the costs incurred in the three years up to the date of the most recent audited financial statements, expressed as a percentage of average net asset value over those three years.

Standard Life Investment Company
Fund name Figures based on data from the audited financial statements for the year ended: Commissions* Transfer Taxes*
AAA Income Fund 28 Feb 2017 0.00% 0.00%
American Equity Income+ 28 Feb 2017 0.07% 0.00%
American Equity Unconstrained Fund 28 Feb 2017 0.07% 0.00%
Asian Pacific Growth Fund 28 Feb 2017 0.26% 0.14%
Corporate Bond Fund+ 28 Feb 2017 0.00% 0.00%
Emerging Market Debt Fund 28 Feb 2017 0.00% 0.00%
Europe ex UK Smaller Companies Fund+ 28 Feb 2017 0.08% 0.04%
European Equity Growth Fund 28 Feb 2017 0.14% 0.04%
European Equity Income Fund 28 Feb 2017 0.13% 0.04%
Global Advantage Fund 28 Feb 2017 0.06% 0.07%
Global Emerging Markets Equity Fund 28 Feb 2017 0.26% 0.09%
Global Emerging Markets Equity Income Fund 28 Feb 2017 0.25% 0.11%
Global Equity Income Fund 28 Feb 2017 0.11% 0.06%
Global Equity Unconstrained Fund 28 Feb 2017 0.14% 0.07%
Global Smaller Companies Fund 28 Feb 2017 0.11% 0.05%
Higher Income Fund 28 Feb 2017 0.00% 0.00%
Investment Grade Corporate Bond Fund 28 Feb 2017 0.00% 0.00%
Japanese Equity Growth Fund 28 Feb 2017 0.12% 0.00%
Short Duration Credit Fund 28 Feb 2017 0.00% 0.00%
UK Equity Growth Fund 28 Feb 2017 0.04% 0.09%
UK Equity High Alpha Fund 28 Feb 2017 0.22% 0.49%
UK Equity High Income Fund 28 Feb 2017 0.05% 0.10%
UK Equity Recovery Fund 28 Feb 2017 0.23% 0.40%
UK Ethical Fund 28 Feb 2017 0.06% 0.12%
UK Gilt Fund 28 Feb 2017 0.00% 0.00%
UK Opportunities Fund 28 Feb 2017 0.17% 0.19%
UK Smaller Companies Fund 28 Feb 2017 0.04% 0.06%

Standard Life Investment Company II
Fund name Figures based on data from the audited financial statements for the year ended: Commissions* Transfer Taxes*
Ethical Corporate Bond Fund 31 Oct 2016 0.00% 0.00%
European Ethical Equity Fund 31 Oct 2016 0.12% 0.04%
Global Index Linked Bond Fund 31 Oct 2016 0.00% 0.00%
Global REIT Fund 31 Oct 2016 0.24% 0.07%
Short Dated Corporate Bond Fund+ 31 Oct 2016 0.00% 0.00%
Short Duration Global Index Linked Bond Fund 31 Oct 2016 0.00% 0.00%
Short Term Money Market Fund 31 Oct 2016 0.00% 0.00%
UK Equity Income Unconstrained Fund 31 Oct 2016 0.10% 0.27%
UK Equity Unconstrained Fund 31 Oct 2016 0.10% 0.19%

Standard Life Investment Company III
Fund name Figures based on data from the audited financial statements for the year ended: Commissions* Transfer Taxes*
Enhanced Diversified Growth Fund 30 Jun 2017 0.00% 0.00%
MyFolio Managed I Fund 30 Jun 2017 0.00% 0.00%
MyFolio Managed II Fund 30 Jun 2017 0.00% 0.00%
MyFolio Managed III Fund 30 Jun 2017 0.00% 0.00%
MyFolio Managed IV Fund 30 Jun 2017 0.00% 0.00%
MyFolio Managed V Fund 30 Jun 2017 0.00% 0.00%
MyFolio Managed Income I Fund 30 Jun 2017 0.00% 0.00%
MyFolio Managed Income II Fund 30 Jun 2017 0.00% 0.00%
MyFolio Managed Income III Fund 30 Jun 2017 0.00% 0.00%
MyFolio Managed Income IV Fund 30 Jun 2017 0.00% 0.00%
MyFolio Managed Income V Fund 30 Jun 2017 0.00% 0.00%
MyFolio Market I Fund 30 Jun 2017 0.00% 0.00%
MyFolio Market II Fund 30 Jun 2017 0.00% 0.00%
MyFolio Market III Fund 30 Jun 2017 0.00% 0.00%
MyFolio Market IV Fund 30 Jun 2017 0.00% 0.00%
MyFolio Market V Fund 30 Jun 2017 0.00% 0.00%
MyFolio Multi-Manager I Fund 30 Jun 2017 0.00% 0.00%
MyFolio Multi-Manager II Fund 30 Jun 2017 0.00% 0.00%
MyFolio Multi-Manager III Fund 30 Jun 2017 0.00% 0.00%
MyFolio Multi-Manager IV Fund 30 Jun 2017 0.00% 0.00%
MyFolio Multi-Manager V Fund 30 Jun 2017 0.00% 0.00%
MyFolio Multi-Manager Income I Fund 30 Jun 2017 0.00% 0.00%
MyFolio Multi-Manager Income II Fund 30 Jun 2017 0.00% 0.00%
MyFolio Multi-Manager Income III Fund 30 Jun 2017 0.00% 0.00%
MyFolio Multi-Manager Income IV Fund 30 Jun 2017 0.00% 0.00%
MyFolio Multi-Manager Income V Fund 30 Jun 2017 0.00% 0.00%

Standard Life Investments Unit Trusts
Fund name Figures based on data from the audited financial statements for the year ended: Commissions* Transfer Taxes*
Dynamic Distribution Fund 31 Mar 2017 0.00% 0.00%
Global Absolute Return Strategies Fund 31 Mar 2017 0.03% 0.02%
Strategic Bond Fund 31 Jan 2017 0.06% 0.03%

Standard Life Investments Real Estate Funds
Fund name Figures based on data from the financial statements for the year ended: Commissions Transfer Taxes Costs associated with direct property transactions
UK Real Estate Fund+ 31 Dec 2016 0.15% 0.03% 0.06%
UK Real Estate Accumulation Feeder Fund+ 31 Dec 2016 0.00% 0.00% 0.00%
UK Real Estate Income Feeder Fund+ 31 Dec 2016 0.00% 0.00% 0.00%

* Costs incurred in the three years up to the date of the most recent audited financial statements as a percentage of average NAV
+ This fund has not yet had three audited year ends and as such the figure disclosed are based on the costs incurred from launch to the most recent audited financial statements.
++ This fund has not yet had three audited year ends and as such the figure disclosed is based on the costs incurred from launch to the most recent audited financial statements date

For further guidance of charges and costs please visit the Investment Association website.