Skip main navigation

Barclays uses cookies on this website. They help us to know a little bit about how you use our website, which improves the browsing experience– both for you and for others. They are stored locally on your computer or mobile device. To accept cookies, continue to use the website. Alternatively, go to the cookies policy for more information on how to disable cookies.

Question

What is the Annual Management Charge (AMC) in relation to a Fund?

Answer

Fund Managers apply an Annual Management Charge (AMC) which is deducted directly from the fund to cover ongoing management. This is taken to pay for their investment management services, such as research analysts and portfolio managers.

However, the AMC is not the only annual cost - there are others such as fund administration services, accounting and legal fees, and custodian and settlement charges for the investments the fund holds. When you combine these with the AMC, you have the total expense ratio (TER), which is the combined annual operating expense of the fund.

You can find initial charges, AMCs and TERs listed on each fund's factsheet.

 

How helpful was this answer?

Not at all Very helpful