The introduction of MiFID II regulations in January 2018 has changed the way costs and charges are represented for funds. These changes apply to all asset management transactions where there is a cost to invest money in the market.

At LGIM, we believe our fees have always been competitive and we are mindful that this new regulation has caused widespread confusion amongst investors at all levels. It is clear that one of the issues investors now face is how they compare investment products. Different firms will have used different methodologies, making comparisons based on costs impractical.

Over time there will be some convergence of methodologies across the industry but in the meantime, we will continue to provide details of our costs and charges directly to platforms and our clients, whilst fulfilling our regulatory obligations.

We have produced a Q&A (below) to help address some of the questions you may have but if you require any assistance about costs and charges or assessing the products at LGIM, please contact sales support on 0345 070 8684 or email

MiFID II documents

MiFID II: costs and charges – what to consider when assessing the value of your investment

While the inclusion of transaction costs will make some funds seem more expensive, they should not be read in isolation. These transaction costs have always been reflected in the fund performance which also needs to be considered. Certain investment strategies will incur higher transaction costs through higher fund turnover which may be generating better performance.

MiFID II: costs and charges – how to calculate the full cost of your investment

To calculate the overall cost applicable to each fund you will need to add the ongoing cost to the transaction cost.

Please note:

For funds less than a year old, we will assess the most suitable methodology for each fund dependent on what is most consistent with the spread. In some cases we have chosen to use the worst case scenario so as to not over estimate performance.

We will continually be updating the information on this page as we speak to clients and receive your feedback