5. Operating expenses
The amounts required to cover the investment management and operating costs of the Fund are as follows:
5.1 Discretionary Portfolio – fees and expenses
| 2017 €m |
2016 €m |
|
|---|---|---|
| Investment managers’ fees | 14 | 10 |
| NTMA recharge | 12 | 10 |
| Legal fees | 3 | 2 |
| Global Custodian fees | 1 | 1 |
| Systems and services | 1 | 1 |
| Tax fees | 1 | 1 |
| Other fees | 0 | 1 |
| 32 | 26 |
Under section 48 of the NTMA Act 2014, the expenses of the Agency in the performance of its functions relating to the Fund are required to be defrayed from the Fund. These amount to €12.5m in 2017 (2016: €10.4m).
5.2 Directed Portfolio – fees and expenses
| 2017 €m |
2016 €m |
|
|---|---|---|
| Interest expense | 0 | 0 |
The interest expense above represents negative interest being charged on the Central Bank account.
5.3 Advisory fees
In line with the requirements of the Code of Practice for the Governance of State Bodies 2016 (“the Code”), advisory fees incurred by the Fund during the year are disclosed below. As this is the first time adoption of the Code, current year figures are presented as follows:
| 2017 €m |
|
|---|---|
| Legal | 3 |
| Financial and tax advisory | 1 |
| Pensions and human resources | 0 |
| Other | 0 |
| 4 |
These costs are included in Note 5.1 Fees and expenses and are inclusive of any advisory fees recharged through the NTMA.