Aviva adding levy on 21 funds

Aviva Investors is to add a 0.1% charge across a total of 21 funds within its range.

The fee has been approved by the Financial Services Authority (FSA) and will be introduced on October 1.

Among the funds where the levy will apply are the Corporate Bond, UK Equity Income fund and Property Trust. It will also be added to six of its sustainable future funds.

Aviva previously levied the charge on a number of other funds and says the latest move is a bid to harmonise charges across its range.

The annual fee will form part of the total expense ratio. On top of the annual management charge, this also includes the fund’s admin costs, depository, custody and registration fees.

Aviva Investors says its charges are in line with the industry and the rises will allow it to enhance the standard of service. (article continues below)

Eight of the Oeic/Unit Trust range affected are also having their annual registration fee decreased from 0.2% to 0.1%. These include two classes of the High Yield Bond
fund, two classes of the Strategic Bond and two of the Global Property fund.

Darius McDermott, the managing director of Chelsea Financial Services, says: “We never like to see fund charges on the rise regardless of the size of that increase. Aviva Investors must show how this rise in fees actually improves the service.”