From 30 September 2017 onwards, we will change the way we display fees and costs in your product disclosure statements (PDSs) and periodic statements, as part of new regulations. The new disclosures provide an extra ‘look through’ of fees and costs, by including indirect and transactional and operational costs.

It is important to note these fees and costs have always existed and factored into your net-of-fee returns. We are simply changing the way they are displayed.

What this means for you

  • You will see new disclosures in your documents from 30 September onwards.
  • There is no impact on your net-of-fee returns.
  • You are not being charged additional fees and costs because of these changes.
  • These fees and costs have always existed, but there was no previous requirement to display them.

Enhanced disclosure

From 30 September 2017 onwards, we will disclose all fees and costs associated with managing your investments, including:
 
  • Indirect costs: these include recoverable expenses, for example, custody and registry fees; performance-based fees of underlying funds; and other indirect costs, for example, over-the-counter derivatives.
  • Transactional and operational costs: these include, buy/sell spreads and other costs such as brokerage, stamp duty and property operating costs.

The changes to fee and cost disclosure do not impact your Net-of-fee returns

Net-of-fee

Your investment return after fees and costs.

Inital amount invested

The amount you initially invested, beforee fees and costs

Old Discloures

Under old regulations, disclosures did not include indirect costs and transactional and operational costs. However, they have always existed and factored into your net-of-fee returns.

New Discloures

Enhanced 'look through' includes indirect costs and transactional and operational costs. These fees and costs have always existed and factored into your net-of-fee returns.