Aviva attaches dilution fee to Isa wrapper

Aviva Investors has added a discretionary dilution levy fee to its Isa wrapper following a switch in the fund's administrators in September.

All Oeics have the capacity to levy a dilution charge, though Aviva terms the fee as an investor protection fee. It is issued when there is a large movement in or out of a fund, which would have a negative impact on existing investors. The fee is only used in Oeics, which use a mid price unlike the dual price unit trusts, which can move between a bid and offer price if there are a large number of buyers or sellers in a fund. The levy is applied by reducing the money paid to the investors making a withdrawal or by deducting the fee from the money being invested. Across the industry the...