Charges Guide:

Employers Monthly Fee:

Compound charges employers a monthly fee of £15. This fee provides employers with access to the Compound Employer Admin portal where they can manage their workplace pension. This also gives employers access to direct customer support and a dedicated account manager to guide them through their Onboarding and general workplace pension management.

Annual Fee:

Compound charges a fee, which is calculated as a small, fixed percentage of the amount you have saved up in your Compound Pension. The fund managers also charge a fund management fee for each fund offered in the Compound pension.

The Total Annual Fee is made up of two parts:

Administration Fee, for Compounds operation and administration services, of 0.51% which pays for Compounds services (and our partners). The monthly proportion of the annual fees is deducted each month from your Compound portfolio.
Fund Management Charge (AMC) from the fund manager for the fund management services that they provide to you. The fund manager will deduct their fee directly from your fund’s value.

The Total Annual Fees for each plan are shown in the table below because each fund manager charges a different AMC for each plan.

Table showing illustrative costs across the different funds available in the Compound Pension Scheme.

Compound Plan	Total Annual Fee (%)	Illustrative Fee on a £10k pot
Compound Plan	Total Annual Fee (%)	Each month	Each year
Vanguard Target Retirement	0.75%	£6.25	£75.00
Vanguard LifeStrategy	0.73%	£6.08	£73.00
Vanguard US Equity	0.61%	£5.08	£61.00
Vanguard Global Equity	1.01%	£8.42	£101.00
HSBC Islamic Global Equity	1.13%	£9.42	£113.00
BlackRock MyMap ESG	0.63%	£5.25	£63.00

The cost illustrations below show the cumulative effect of ongoing charges on your investment over time, based on a 5% annual growth assumption of a £10,000 pot. Actual charges will depend on your investment value, which may grow or fall. These are estimates and do not represent actual or maximum costs.

Compound Plan	Ongoing Fee %	Year 1 Fee (£)	Year 2 Fee (£)	Year 3 Fee (£)	Year 5 Fee (£)
Vanguard Target Retirement	0.75%	£78.75	£82.69	£86.82	£95.72
Vanguard LifeStrategy	0.73%	£76.65	£80.48	£84.51	£93.17
Vanguard US Equity	0.61%	£64.05	£67.25	£70.62	£77.85
Vanguard Global Equity	1.01%	£106.05	£111.35	£116.92	£128.90
HSBC Islamic Global Equity	1.13%	£118.65	£124.58	£130.81	£144.22
BlackRock MyMap ESG	0.63%	£66.15	£69.46	£72.93	£80.41

The Administration Fee is calculated daily and deducted monthly.

What’s Included:

The Annual Fee includes everything from setting up your Compound Pension with us, making any type of contribution, transferring in or moving money between Funds, drawing money after you turn 55 or even if you decide to leave before then. If you wish to transfer all of your pension pots into one place, we will transfer those into your Compound Pension all for free too. However, in very rare circumstances we may not be able to offer this service to you, which we will discuss at the time of the request.

Fee Reviews:

The fees described in this Charges Guide may be varied from time to time in response to inflation, regulatory changes, or other good reasons. Should the decision be made to vary fees, we will provide a 30 day notice email to all pension holders.

Interest on Cash in your Compound Pension:

No interest is paid on the cash temporarily held, on your behalf, through your Compound Pension.

Non-payment of Administration Fee:

The Compound Pension is designed to have your money invested promptly. This means that there is usually no cash from which to take the Administration Fee, unless you have recently paid a contribution. If no cash is available to take the fee, then we will sell down your investments to pay for it. If we are unable to be paid our fees directly by selling down investments because there is insufficient value in the investments within your Compound Plan, we may sell whatever investments are in the Plan to partially settle your fees and then close your account.

Transfer Out In-Specie Fee

If you choose to transfer your Compound pension to another pension provider, in-specie, providing the pension provider offers the fund(s) you are invested in then you will need to pay the fee of £20 per investment holding. If you choose to transfer your pension out of Compound in cash you will not be charged any fee.

Income Drawdown Fee

If you choose to take your pension benefits, at this point you will be charged the income drawdown fee of £100, and for each additional year you take income £100 per annum. You will be charged the £100 + VAT at the point of crystallisation and annually thereafter.

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