Fees and costs are reported in iRate in line with RG97 and reflect how investment product providers calculate and show the fees and costs of their products in a PDS.
What are the fees and costs fields?
The ICR and MER fee fields have been replaced with the following fees and costs data:
Annual Fees and Costs (PDS) is a new data field which shows the cost of the product calculated as the sum of the below costs and fees. It applies to managed funds, superannuation funds, mFunds, ETF’s, Direct Assets and LIT’s
Management Fees and Costs: this is the fees and costs for managing the investment, as represented in the "Fees and Costs Summary" table in the PDS.
Performance Fee Costs: this field is the Performance Fee shown in the "Fees and Costs Summary" table in the PDS and is the amount deducted from an investment in relation to the performance of the fund. It is intended as a representation of potential on-going performance fee expenses and should be calculated as an average using the performance fee costs from the last five financial years (or as many as the performance fee was applicable).
Investment Fees and Costs: this field is the Investment Fees and Costs shown in the "Fees and Costs Summary" in the PDS but excludes the Performance Fee component (reported separately). This applies to superannuation products only, alongside the Administration Fees & Costs.
Net Transaction Costs: this is the sum of transactional and operational cost components after deducting the costs recovered via the spread, as represented in the "Fees and Costs Summary" table in the PDS.
Please note, Buy Spread/ Sell Spread is shown for information only and does not form part of the sum for the Annual Fees and Costs (PDS).
For LIC’s, Information Memorandum and Investment Bonds we will be reporting the Annual Fees & Costs (Estimate), alongside the Performance Fee (where applicable).
The Management Fee will continue to be reported for those products outside of the RG97 regulations, namely SMA’s and Structured Products.
Full details are available here
Comments