The MER is a measure of the ongoing fees and expenses of investing in the Fund. It is expressed as a percentage of the size of the Fund and includes the investment management fees, general expenses (including custodian and administraton fees) and GST in relation to the operation of a fund over a given period. The MER does not include any transaction costs or government charges, with the excepton of GST.
The MER is capped at 1.50% per annum, plus GST and input tax credits received by the Fund. The MER is calculated on the Gross Asset Value of the fund and is accrued weekly. Expenses or costs properly incurred by First Guardian in respect of the Fund above this amount will be recoverable out of the Fund.
The Fund’s Trust Deed entitles First Guardian Capital to be reimbursed out of the Fund’s assets for expenses properly incurred in operating the Fund (together with any GST on such expenses). Such expenses include audit expenses, costs associated with the preparation of this Member’s Guide, legal expenses, stationery, postage and compliance costs.
Transaction Costs (such as brokerage,government taxes, duties and levies, custody fees, bank charges and account transaction charges) will also be paid out of the Fund.
Occasionally, abnormal costs may be paid out of the Fund. Such costs may include the costs of holding unit holders’ meetings or electing changes to the Trust Deed of the Fund. First Guardian Capital will not be reimbursed from the Fund for any expenses that it incurs which are directly attributable to First Guardian Capital’s business, such as overheads or internal salary expenses.
This Guide shows fees and other costs that you may be charged in relation to an account in the Fund. These fees and costs may be deducted from your account balance, from the returns on your investment or from the assets as a whole. The fees deducted from an accumulaton account may be less because of the impact of any tax deductions that are passed on to relevant members.
You should read all the information about fees and costs because it is important to understand their impact on your investment.
Fees and costs for investments are explained below in this Guide. All fees quoted are inclusive of GST.
|Type of Fee||Amount||How and when paid|
|Investment Fees*||0.88% p.a of the total assets of each investment option.||Taken into account in the investment option unit price (when unit prices are calculated)|
|Administration Fees||A member fee of $1.98 per week per member||Calculated and deducted from the Member’s assets monthly in arrears.|
|Plan Management Fee
0.336% of the total assets in each investment option.
|Taken into account in the investment option unit price (when unit prices are calculated)|
|Expense recovery estimated at 0.05%.||Taken into account in the investment option unit price (when unit prices are calculated)|
|Exit fee||$55.00||Deducted from member assets at time of exiting the Fund.|
|Advice fees relating to all members investing in a particular option||Nil
There are no advice fees applicable to all members in an investment option.
|Other fees and costs**|
|Indirect cost ratio||Defensive 0.21%
|Taken into account in the underlying managed fund’s unit price (when unit prices are calculated).|
** Important: other fees and costs may apply depending on how you invest the costs of any underlying investments (indirect costs) that form your investment portfolio, buy-sell spreads for underlying managed funds, activity fees, and insurance fees. For information about other fees and costs please contact First Guardian Capital.