Fee types — shared vocabulary

Shared vocabulary reduces board confusion. The list above is educational taxonomy for South African EB discussions — not a fee schedule for any named fund.

Investment management fee

Ongoing charge for portfolio management, often a percentage of assets. Confirm whether it is included in TER.

Administration / platform fee

Charge for record-keeping, member administration, or platform access. May sit outside TER depending on structure.

Advice fee

Payment for financial advice or consulting. Often separately disclosed; boards should know who pays and on what basis.

Performance fee

Additional charge linked to outperformance versus a hurdle or benchmark. Read the crystallisation rules carefully.

Transaction costs

Costs of buying and selling underlying assets. Sometimes disclosed beside TER rather than inside it.

Switching / exit charges

Costs triggered by moves between portfolios or exits. Check member communication and fund rules — not just the fact sheet headline.