Financial Markets Conduct Regulations 2014

38 Example of how fees apply to investors

(1)

Under the subheading Example of how fees apply to an investor, the PDS must contain an example in the following form:

[Name] invests $10,000 in the [specify fund name]. He/She* is charged an establishment fee of $[specify]. He/She* is also charged contribution fees of $[calculate] ([specify]% of $10,000).

This brings the starting value of his/her* investment to $[specify].

He/She* is also charged management and administration fees, which work out to about $[calculate] ([specify]% of $[specify]). These fees might be more or less if his/her* account balance has increased or decreased over the year.

[Name] may also be charged a performance-based fee if his/her* fund earned more than its target.

Over the next year, [name] pays other charges of $[specify].

Estimated total fees for the first year

Individual action fees: $[calculate]

Fund charges: $[calculate]

Other charges: $[specify]

See the latest fund update for an example of the actual returns and fees investors were charged over the past year.

This example applies only to the [specify fund name]. If you are considering investing in other funds or investment options in the scheme, this example may not be representative of the actual fees you may be charged.”

*Select one.

(2)

If there is more than 1 fund covered by the PDS, the example must be based on a fund that involves amounts of fees that are at least average (in relation to the funds covered by the PDS).

(3)

The amount of the initial investment may be amended if the manager reasonably considers that another amount would provide more useful information to investors.