Ongoing Charges Figure (OCF)

The ongoing charges figure (OCF) shows the drag on performance caused by operational expenses associated with a fund.

Expenses represented by this figure include payments to the manager, trustee, custodian, and their representatives. The figure also includes registration, regulatory, audit, and legal fees, and the costs of distribution.

Performance fees, transaction costs, interest on borrowing, costs associated with derivatives, entry and exit fees, and soft commissions are not included in the OCF calculation and should be factored in separately by the investor.

The OCF is calculated by taking the sum of these expenses incurred in the past 12 months and dividing this by the average net assets of that class for the past 12 months.