Investment management, accounting, company secretarial and administrative services are provided to the Group by wholly owned subsidiary companies of Henderson. Under the terms of the management contract since 1 January 2013 the basic annual management fee is 0.40% per annum of the average net chargeable assets on the last day of October of the preceding two years. On 1 November 2013 this is expected to move to 0.45%of net chargeable assets, subject to review, more details can be found in the Annual Report and Financial Statements.
Since 1 January 2013 the performance fee arrangements have been dropped.
Morningstar calculates all expenses for the financial year, consisting of management fees, performance fees, directors' fees, administration fees, custody fees, audit fees, marketing fees, loan interest, tax, restructuring costs and all other expenses given in the Statement of Total Return and notes in the Report and Financial Statements. They subtract performance fee, restructuring costs, transaction costs, compensation scheme expenses and trail commission then calculate the average daily net assets on a cum fair basis, then divide the total expenses by the average daily net assets and multiply the resulting figure by 100 to arrive at this ratio.
Please note, not all companies have yet adopted ‘ongoing charges’ as the methodology in their Annual Report and Financial Statements. This may mean there are differences between the charges shown on our factsheets and website and the TER shown in the Annual Report.