Ongoing Charges (Total Cost)
The Ongoing Charge represents the total costs you can reasonably expect to pay as an investor from one year to the next, covering all the costs of operating the fund. The cost is embedded into the price and deducted daily, so regardless of when you invest, you are treated equally and you only incur costs equal to the holding period of the investment.
The main component of the ongoing charges is represented as the management fee.
Taken from the fund's prospectus, this represents the management and administrative fees listed under Management Fees. It most commonly represents the costs investors pay for management and administrative services over the fund's fiscal year.
A portion of the Management Fee is potentially paid to the distributor of the products as Retrocession. Retrocession is the revenue that the distributors generate from selling the product to end clients.
1. Ongoing Charges = 1.86 % (Total Cost)
2. Management Fee = 1.5% (part of ongoing charges)
3. Retrocession = 0.675% (part of management fee)