Effective Annual Cost (EAC)

Background

The Effective Annual Cost measure (EAC) is a standardised disclosure methodology that can be used by consumers and advisors to compare charges on most retail investment products, and their impact on investment returns, so that consumers are placed in a position to make better informed decisions around retail savings and investment product choices.
The EAC Standard was been introduced by the Association for Savings & Investment South Africa (ASISA) and more information can be found on the ASISA website www.asisa.org.za

The EAC comprises four separate components:

Investment management charges;
Advice charges;
Administration charges;
Other charges

The EAC is calculated separately for each of the four components and then summed to derive the EAC for the Financial Product as a whole.

It is mandatory to calculate the EAC over four time periods, being 1,3,5 years and end of term where there is a specified term, or ten years if no term.

The Investment Management Charge

The investment management component includes all costs and charges for all underlying investments, as set out in the “ASISA Standard: Calculation and Disclosure of Total Expense Ratios and Transaction Costs”. The costs must be calculated over rolling three year periods coinciding with a calendar quarter end and annualised.

The Advice Charge

All charges that an investor incurs for the provision of financial planning by an adviser or representative (as defined in FAIS) should be included in the EAC (Advice) component.

The Administration Charge

The administration charge component includes all charges that an investor incurs relating to the administration of a Financial Product.

Other charges

The Other calculation is only shown if not a zero value and should include all termination charges, penalties or loyalty bonus payments that are reasonably foreseen if the investor terminates his or her contract and withdraws all of the funds at the end of the disclosure period. In essence it is the “catch all” to contain any remaining charges that will be levied against a Financial Product.

Disclosure

Effective Annual Cost:
The Effective Annual Cost (EAC) is a measure which has been introduced to allow you to compare the charges you incur and their impact on investment returns when you invest in different Financial Products. It is expressed as an annualised percentage. The EAC is made up of four components, which are added together, as shown in the table below. The effect of some of the charges may vary, depending on your investment period. The EAC calculation assumes that an investor terminates his or her investment in the Financial Product at the end of the relevant periods shown in the table.

Ranmore Global Equity Fund plc USD Investor Class, GBP Investor Class and EUR Investor Class

Impact of charges	1 year	3 years	5 years	10 years
Investment management¹	1.2%	1.2%	1.2%	1.2%
Advice	0.0%	0.0%	0.0%	0.0%
Administration²	0.1%	0.1%	0.1%	0.1%
Other	0.0%	0.0%	0.0%	0.0%
Effective Annual Cost³	1.3%	1.3%	1.3%	1.3%

Notes

Includes: transaction costs of 0.2% which are explicit costs related to the buying and selling of the fund’s underlying assets; the fees of the investment manager, which are a fixed percentage of the value of the fund; costs incurred in the operation of the Fund, such as legal fees, regulatory oversight fees, independent directors’ fees, audit fees, risk management fees, depositary safekeeping fees, secretarial fees, many of which are variable and are assumed to increase or decrease in the same proportion as the changes in assets under administration over time.
Represents the fees of the Fund’s Administrator and are a fixed percentage of the assets under administration, subject to a monthly minimum fee.
The figure is an estimate and could increase or decrease over the time periods projected depending on several factors, including, but not limited to: the value of the fund; a change in the fees of various service providers; the level of trading activity of the fund.

Ranmore Global Equity Fund plc USD Advisor Class

Impact of charges	1 year	3 years	5 years	10 years
Investment management¹	1.2%	1.2%	1.2%	1.2%
Advice²	0.5%	0.5%	0.5%	0.5%
Administration³	0.1%	0.1%	0.1%	0.1%
Other	0.0%	0.0%	0.0%	0.0%
Effective Annual Cost⁴	1.8%	1.8%	1.8%	1.8%

Notes

Includes: transaction costs of 0.2% which are explicit costs related to the buying and selling of the fund’s underlying assets; the fees of the investment manager, which are a fixed percentage of the value of the fund; costs incurred in the operation of the Fund, such as legal fees, regulatory oversight fees, independent directors’ fees, audit fees, risk management fees, depositary safekeeping fees, secretarial fees, many of which are variable and are assumed to increase or decrease in the same proportion as the changes in assets under administration over time.
0.5% fee payable to the nominated financial intermediary on applications for shares in the USD Advisor Class.
Represents the fees of the Fund’s Administrator and are a fixed percentage of the assets under administration, subject to a monthly minimum fee.
The figure is an estimate and could increase or decrease over the time periods projected depending on several factors, including, but not limited to: the value of the fund; a change in the fees of various service providers; the level of trading activity of the fund.