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.
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
Your investment return after fees and costs.
Inital amount invested
The amount you initially invested, beforee fees and costs
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.
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.
While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMP Capital) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital.