Transaction costs
See how fund transaction costs can affect members’ pension savings.
What are transaction costs?
Costs are incurred by investment funds when assets are bought, sold, or lent by the fund. These are called ‘transaction costs’. These costs reduce the funds’ net investment returns, which can affect the value of our members' pension savings.
There are various types of transaction costs, eg, brokerage fees, stamp duty and custodian fees, foreign exchange levies and bid/offer spreads.
Breakdown of our transaction costs
Here’s how each of our investment funds are affected by transaction costs.
| Investment fund | Management charge | Transaction costs |
|---|---|---|
| Global Investments (up to 85% shares) Fund | 0.50% | 0.09% |
| Pre-Retirement Fund | 0.50% | 0.05% |
| Global Investments (up to 60% shares) Fund | 0.50% | 0.06% |
| Global Investments (up to 100% shares) Fund | 0.50% | 0.07% |
| Ethical Fund | 0.50% | 0.01% |
| Annuity Fund | 0.50% | 0.01% |
| Shariah Fund | 0.50% | 0.02% |
| Cash Fund | 0.50% | 0.00% |
Keeping things clear for our members
We’re committed to being transparent about how our costs and charges can affect the value of members’ pension savings over both the short and long term.
The projections shown below for the scheme year ending 31 March 2027 estimate the impact of:
- The 0.5% management charge
- The £6.50 annual charge
- Any savings reward (rebates) due on the management charge
- Transaction costs and their impact on the value of an example pension – across our core investment strategy – the ‘balanced’ investment profile and for each of our investment funds.
The effect of these costs and charges on a member’s pension savings depends on how much is contributed, how long it’s invested for, and which fund it’s invested in.
These projections are based on our standard member charges. Members can find out more about their exact charges in their online account. Once logged in, they’ll need to go to ‘Manage my pension’, followed by ‘Charges’.
These projections are for the current scheme year. Charges may change over time, and these values are not guaranteed.
Projections for the scheme year
Ending on 31 March 2027…
Our assumptions
Because each member’s savings are different and future investment returns, costs and charges can’t be known in advance, the Trustee has made a number of assumptions about potential outcomes:
- Projected pension values are shown in today’s terms, and do not need to be reduced further for the effect of future inflation.
- The illustration does not indicate the likely variance and volatility in the possible outcomes from each fund.
- Starting pension size is assumed to be £0 unless otherwise stated.
- Contributions are assumed to be £186 per month from age 22 to 68 and increase each year in line with inflation (2.5%).
- Values are estimates and not guaranteed.
- Charges include the annual management charge and transaction costs.
- Charges include the 0.5% management charge, the £6.50 annual charge, and any savings reward due on the management charge. Find out more about our member annual management charge. These charges may change over time, and these values are not guaranteed.
- Inflation is assumed to be 2.5% per year.
- No allowance for active management has been made.
