EAC is disclosed in a table as follows:
The Effective Annual Cost (EAC) is a measure which has been introduced to allow you to compare the cost you incur when you invest in different financial products. It is expressed as a percentage of your investment amount. The EAC is made up of four charges, which are added together, as shown in the table below. Some of the charges may vary, depending on your investment period. The EAC calculation assumes that an investor terminates his or her investment in the financial product at the end of the relevant periods shown in the table.
In addition, there may be free text notes explaining some of the costs included.
1. Administration Charges are the costs relating to the administration of financial products. For direct investments, the administration charge is included in the TIC listed above and the Administration Charge will thus be 0%.
2. Investment Management Charges is the Total Investment Cost (TIC) associated with the fund including the costs of any underlying funds, less any rebates which you may receive.
3. Advice Charges are the financial planning costs that are paid to your financial adviser on your behalf, including initial and ongoing fees as applicable on both lump-sum and recurring investments. Where the adviser fee is not facilitated by us or where there is no advisor on record, the advice charge will be 0%.
4. Other Charges is a catch-all for all remaining charges, such as termination charges, penalties, loyalty bonuses, guarantees, smoothing or risk benefits, and charges for risk benefits such as a premium-waiver benefit. This component is only shown in the EAC table where it has a non-zero value.
The EAC will depend on your fund selection and how the markets perform during the term of your investment. All charges include VAT where applicable.