The Pensions Authority would like to place cookies on your computer to help us make this website better. To find out more about the cookies, see our Cookie Policy.

I accept cookies from this site You must tick the 'I accept cookies from this site' box to accept.

In order to personalise your content you must select all three options


Fees & charges

Annual management charges (AMC)

Annual management charges (AMC) are generally applied as a percentage of the assets of the fund, for example 0.5% of fund assets per annum. Charges could also include a fixed monetary portfolio management fee. Annual management charges are automatically taken from the assets of the pension fund on a regular basis.

AMCs have a proportionately higher impact on larger funds than on smaller ones.

Annual management charges are higher for actively managed funds than for passively managed funds, and tend also to be higher for equity-based funds than for cash or bond funds.

Because annual management charges are taken from pension funds each year, the impact will be higher for members and pension savers who are saving for longer terms than those saving for a short term.

There are other costs associated with the day-to-day management of investments. The main ones are: custody and trustee fees, fund accounting fees, dealing costs - the cost of buying and selling assets, including stockbroker commissions, and stamp duty - taxes levied on the buying of certain assets in some markets.

Sometimes the AMC and other charges (excluding dealing costs and stamp duty) are all described together as a fund's Total Expense Ratio (TER).

Some older pension contracts have ‘Initial Units’ or ‘Capital Units’. These tend to have a very high AMC, which significantly reduces the value of these units over the longer term.