Explaining the charges and costs of investing
The charges and costs you pay in relation to investing in funds can have a real impact on the returns that you get, so it is important you know what you will pay. This page explains the different types of charges and costs.
These are the charges and costs you may pay when investing in an Artemis fund.
One-off charges when you invest
| Charges | Description | Artemis charges |
|---|---|---|
| Initial charge | Sometimes called the ‘entry charge’, this is an upfront charge paid when you invest money in a fund and is deducted from your investment before you invest. This covers the costs of setting up your investment, such as administration and marketing costs. | Artemis does not apply an initial charge on any of its funds. |
Charges and costs taken from a fund over a year
| Charges | Description | Artemis charges |
|---|---|---|
| Ongoing charge | These are the annual operating expenses of running the fund and are deducted from the net assets of the fund. Different charging bases apply to different types of funds; these are explained in the ‘Fund charges and costs’ document. | Ongoing charges for Artemis’ funds are set out in the table headed ‘Charges and costs for individual funds’ below.
For further details of how ongoing charges are calculated, read the ‘Fund charges and costs’ document. |
| Performance fee | A performance fee is a payment made to Artemis when a fund beats its stated performance target. | Artemis charges a performance fee on two funds: the Artemis US Extended Alpha Fund and Artemis Funds (Lux) – US Extended Alpha. The actual performance fees charged in the fund's last financial year are set out in the table headed ‘Charges and costs for individual funds’ below, and further information is contained in the ‘Fund charges and costs’ document. |
| Transaction costs | These costs are incurred when buying and selling the fund’s underlying investments, such as broker commissions and taxes. In addition, there is a dealing spread between the prices at which the fund buys or sells the underlying investments. Some investments (such as bonds, money market instruments, derivatives etc) have no separately identifiable transaction costs; these costs form part of the dealing spread. Dealing spreads vary considerably depending on the investment being bought or sold, the transaction value and market sentiment. | Transaction costs for Artemis’ funds are set out in the ‘Fund charges and costs’ document, along with further explanation about them. |
| Transfer taxes | Transfer taxes are taxes levied by governments on the sale of stocks and shares. | Transfer taxes incurred by Artemis’ funds are set out in the ‘Fund charges and costs’ document. |
Costs when you buy or sell
| Charges | Description | Artemis charges |
|---|---|---|
| Dilution adjustment | Artemis operates a single pricing methodology for its funds and reserves the right to adjust the price to protect investors’ investments from the cost of buying or selling investments that result from other investors joining or leaving the fund. The amount of any such adjustment, known as a dilution adjustment, is calculated by reference to the estimated costs of dealing in the underlying investments, including any dealing spreads, broker commissions and taxes. Artemis usually adjusts the price whenever significant net contributions (adjustment to offer price) or withdrawals (adjustment to bid price) take place, which helps protect investors’ investments from the costs of the resultant transactions. |
Please refer to a fund’s prospectus for the typical range of dilution adjustments for each fund and class. |
| UK stamp duty reserve tax (SDRT) | SDRT is a tax that was previously chargeable in the UK on the value of surrenders and issues of fund units/shares in the UK. Although the UK government abolished this tax with effect from 30 March 2014, there are some instances in which SDRT continues to be levied. If an investor redeems fund units or shares in specie* and receives a non-pro rata share of the fund’s underlying assets, SDRT will arise to the extent that those underlying assets include chargeable securities. SDRT might also continue to arise on sales of units or shares by one investor to another, where the holding remains registered in the same name. * In specie describes the transfer of an asset (in this case, fund units or shares) in its current form (ie a fund unit or share) rather than in the equivalent amount of cash.
|
Stamp duty reserve tax incurred is 0% for all funds and classes. |
| Exit charge | This fee may be charged before the proceeds of your investment are paid out. | Artemis does not charge an exit charge on any of its funds. |
Further information about charges and costs
You can find information about fund charges and costs, including those for each fund and unit/share class, in these places:
- ‘Fund charges and costs’ page, which repeats some of the information above and provides a list of charges and costs for all Artemis funds and unit/share classes
- ‘Fund charges and costs’ document (PDF, opens in a new window), which contains further explanations about each type of charge and cost and the specific performance fees, portfolio transaction costs, transfer taxes and dilution adjustments for each fund
- on the individual fund pages in the ‘fund data’ sections; visit the prices and performance page then choose the fund you’re interested in
- on the individual Key Investor Information Documents (KIIDs) and/or Key Information Documents (KIDs) for each fund’s unit/share classes; visit the prices and performance page then choose the fund you’re interested in, or visit the literature library
This information is intended to provide you with help and guidance about investing generally and about investing with Artemis. It is not a marketing communication and should not be used to make investment decisions. You should always refer to the relevant fund prospectus and KIID/KID before making any final investment decisions.
Artemis does not provide investment advice on the advantages or suitability of its products and no information provided should be viewed in this way. Should you be unsure about the suitability of an investment, you should consult a suitably qualified professional adviser.