The fees and costs applicable to your investment in the Australian Ethical Managed Funds (‘Funds’) will change from 30 June 2014. The amount you pay will depend on the managed fund you are invested in.
This section provides information on the fees and other costs that you may be charged for investing in the Funds. These fees and costs may be deducted from your investment, from the investment returns, or from the Fund’s assets as a whole.
If you consult a financial adviser, additional fees may be payable to the adviser. You should refer to the Adviser’s Statement of Advice for details.
|Type of fee or cost||Amount||How and when paid|
|Fees when your money moves in or out of the Fund|
|Establishment fee||Nil||Not applicable|
|Contribution fee||Nil||Not applicable|
|Withdrawal fee||Nil||Not applicable|
|Termination fee||Nil||Not applicable|
|The fees and costs for managing your investment||Retail management fee (Management costs are included in the unit price for each investment option and are inclusive of GST.)|
|Cash Trust||1.0% p.a.|
|Fixed Income Trust||1.5% p.a.|
|Balanced Trust||2.5% p.a.|
|Larger Companies Trust||2.2% p.a|
|Advocacy Fund||2.2% p.a.|
|International Equities Trust||1.76% p.a.|
|Smaller Companies Trust||2.5% p.a.|
Transaction costs such as brokerage, settlement costs and duties may be incurred when buying and selling assets of the Funds. When you invest, switch or withdraw all or part of your investment, we will use a buy-sell spread to recover these transaction costs for the Fund and to ensure other investors are not paying the costs of your transaction. The buy-sell spread is an adjustment to the application and redemption unit prices.
|Managed Fund||Buy / sell spread %|
|Fixed Income Trust||Nil|
|Balanced Trust||0.01 / 0.01|
|Larger Companies Trust||0.02 / 0.02|
|Advocacy Fund||0.02 / 0.02|
|International Equities Trust||0.15 / 0.15|
|Smaller Companies Trust||0.01 / 0.01|
Adviser fees and commissions
If your investment is made through a licensed financial adviser then the following arrangements may apply.
Adviser service fee – upon your instruction, up to 1% per annum of your account balance may be paid to your adviser. For example, on a $50,000 investment, a 1% fee would be $500 for the year. The service fee is set by negotiation between you and your adviser. It is paid in addition to our management fees. The fee is deducted from your account balance and paid to your adviser quarterly in arrears by redeeming units from your investment. The adviser service fee is ongoing and we will continue to pay your adviser quarterly until you instruct us otherwise.
Adviser commission – under some arrangements made between investors and their advisers prior to 30 June 2012, adviser commissions may be paid when additional investments are made to a Fund. The percentage amount will be deducted from each contribution. For new investors after 30 June 2012, there is no contribution fee and therefore, no adviser commission.
Under the Constitutions of the Funds, the Responsible Entity is able to issue different classes of units. The Responsible Entity will (at its discretion) provide wholesale and larger investors with a different class of units provided the specified conditions are met. The PDS for each Fund applies to the different class of units in all respects, except that the management fees for the different class will be the rate set out in the following table:
Managed Fund – Class B Units
|Condition for access(Conditions may vary at the discretion of the Responsible Entity)|
|Smaller Companies Trust||
|$50,000 minimum Investment in theSmaller Companies Trust, plus investor must maintain $500,000 Investment across Australian Ethical’s Managed funds|
|Larger Companies Trust||
|$50,000 minimum Investment in theLarger Companies Trust, plus investor must maintain $500,000 Investment across Australian Ethical’s Managed funds|
|Fixed Interest Trust||
Further information on the fees and costs that apply to your investment is available in the Product Disclosure Statement
This information is general information only and does not take account of your individual investment objectives, financial situation or needs. Before acting on it, consider seeking independent financial advice.