| Type of fee or cost / Fees when your money moves in or out of the Fund | Amount | How and when paid |
|
| Establishment Fee / The fee to open your investment. | Nil | Not applicable | |
| Contribution Fee / The fees on each amount contributed to your investment. | Nil | Not applicable | |
| Withdrawal Fee / The feeon each amount you take out of your investment. | Nil | Not applicable | |
| Termination Fee* / The fee to close your investment. | Nil | Not applicable | |
| Management Costs / The fees and costs for managing your investment. | |||
| Administration Fee** / The fee for operating the TCGI Separately Managed Accounts. | First $500,000 | 0.60% p.a. | The Admin Fee is calculated monthly in arrears based on the daily value of your Account and is deducted directly from your Account. |
| $500,001-$1,000,000 | 0.44% p.a | ||
| $1,000,001-$5,000,000 | 0.33% p.a. | ||
| $5,000,001-$10,000,000 | 0.23% p.a. | ||
| More than $10,000,000 | 0.05% p.a. | ||
| Investment Fee*** / The fee for investing in a Model Portfolio. | Each Model Portfolio has its own fee structure. Please refer tp page 10 of the PDS for a summary. | The Investment Fee is calculated monthly in arrears based on the daily value of your Account and the particular Model Portfolio selected. It is deducted directly from your Account. | |
| Performance Fee† / The fee payable for the investment performance of a Model Portfolio. | The Performance Fee for each Model Portfolio, where applicable is shown in the table on page 10 of the PDS. | The Performance Fee, if applicable, is calculated monthly in arrears based on the daily value of your Account and the particular Model Portfolios selected. It is deducted directly from your Account. | |
| Service Fees†† | |||
| Investment Switching Fee / The fee for changing Models | Nil | Not Applicable | |
| Adviser Service Fee††† / A fee payable to your adviser based on your daily balance | Up to 0.50% p.a. | The Adviser Service Fee is calculated monthly in arrears based on the daily value of your Account and is deducted directly from your Account. The fee is paid to your adviser at your direction for services that your adviser provides to you. You can negotiate the amount of the fee with your adviser. | |
| Dealer Group Service Fee° / A fee paid to dealer groups to facilitate the provision of the TCGI Separately Managed Accounts to their advisers and clients. | Up to 0.20% p.a. | The Dealer Group Fee is calculated monthly in arrears based on the daily value of your Account and is deducted directly from your Account. | |
| Research Fee°° / A fee to compensate brokers for the provision of research. | Up to 0.20% p.a. | The Research Fee is calculated monthly in arrears based on the daily value of your Account and is deducted directly from your Account. | |
* No Termination Fee is payable, however any Management Costs
and Service Fees accrued but not yet paid would be deducted from your Account
prior to the cash and securities in your Account being transferred out.
**
The Administration Fee is tiered – for example a balance of $1,000,000
would be charged at 0.60% for the first $500,000 and 0.44% for the next
$500,000.
*** Refer to “Investment Fee” in the “Additional
explanation of fees and costs” below.
†Refer
to “Performance Fee” in the “Additional explanation
of fees and costs” below.
†† This
fee includes an amount payable to an adviser. See “Adviser Remuneration” in
the “Additional explanation of fees and costs” section on page
30 of the PDS for further details.
†††Refer
to ‘Adviser Service Fee” in the “Additional
explanation of fees and costs” section on page 30 of the PDS for
further details.
°Refer
to “Dealer Group Service Fee” in the “Additional
explanation of fees and costs” section on page 30 of the PDS for
further details.
°°Refer
to “Research Fee” in the “Additional explanation
of fees and costs” section on page 30 of the PDS for further details.
ADDITIONAL EXPLANATION OF FEES AND COSTS:
Administration Fee
The Administration Fee is paid to the
responsible entity, BlackRock, to cover the costs of administering the
TCGI Separately Managed Accounts. The fee is based on your total account
balance, including any cash and other assets held outside (not allocated
to) Model Portfolios. The fee is calculated daily and paid monthly in
arrears from the cash balance in your Account.
Model Providers Fee
Each Model Portfolio
has its own separate fee structure, as agreed with the Model Portfolio’s
adviser. These fees typically have two components, as set out in the “management
costs” section of the fee table
above: a base fee, referred to as the “Investment Fee” and
a performance-based fee, referred to in the table as the “Performance
Fee”. Individual Model Portfolios may charge either one or both of
these two fees.
Full details of the fees applicable to each Model Portfolio can be found with the description of the individual Model Portfolios, set out on pages 12 to 18 of the PDS. They are also summarised in the table on page 10.
The Investment Fee
The
Investment Fee represents the base fee component of the Model Adviser’s
fee. This fee is charged on the value of your Account applied to the particular
Model Portfolio, and is not linked to performance of the Model Portfolio.
The Performance Fee
The
Performance Fee represents a premium paid to the Model Portfolio Adviser
for exceeding the Model Portfolio’s performance benchmark, as set
out in the “Model Portfolio features at a glance” table on
pages 10 to 12 of the PDS.
Performance Fees payable in respect of a particular Model Portfolio are based purely on the Model Portfolio’s performance and do not take account of any individual customisations that you may have introduced (such as stock substitution). For this reason it is possible that your own Personal Portfolio’s performance may differ from the Model Portfolio’s performance used for calculating the Performance Fee.
A standard calculation methodology is used across all Model Portfolios (where applicable – not all Model Portfolios incorporate a Performance Fee). Performance is calculated after the deduction of any applicable Investment Fees.
The Performance Fee calculation incorporates a high water mark concept. The use of a high water mark (set at the individual client level) protects you from paying Performance Fees twice in the event that a Model Portfolio experiences a period of under-performance followed by a period of stronger performance.
Where you withdraw all funds from a Model the Model Provider’s Fee calculated and accrued at that point in time will become payable. This includes the Investment Fee and the Performance Fee, if any.
Payment only where Absolute Return is positive
Payment of
Performance Fee will only occur where the return of the Model is positive
and payment of the Performance Fee does not make the return less than
the greater of the Model’s index
return or zero. In such circumstances where there is out performance
but the Model return is negative, the Performance Fee otherwise payable
will be carried forward and accrued for payment in the following periods
if possible.
