Apologies for jumping into this thread. I've been wondering if the AMC is the full charge and I'm guessing not.The AMC is made up of three parts:
1. Costs of running a life insurance company - staff wages, light & heat etc
2. Broker commission/ allocation rates - we see this with options where there is an allocation rate of 105%, the base amc is 1%. Where the allocation rate is 100%, the base amc may be 0.4% or 0.5%.
I'm looking at a KIDD document at the moment on a recommended fund where they mention a number of charges including a once off entry fee of 0.93%, ongoing annual portfolio costs(or impact on return as its described) are 1.83% plus transaction costs of .09%
The annual charge I was quoted was 1%.
So is my annual charge the 1% AMC or this 1% plus the 1.83% +.09%.
To me impact on return and charge/fee are the same