What is the Effective Annual Cost (EAC)?

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 charges (Investment management, Advice, Administration and Other charges), which are added together. Some of the charges may vary, depending on your investment period.