We are the first, and only, Australian funds management business to offer an investment structure to retail clients that features capped fees. Our capped fee excludes brokerage and does not include fees charged by third-party ETF issuers. We will cover this below.
Most people fear hidden costs, so let's dig through the full list of fees and costs that are associated with our investments.
InvestSMART Management Fee
We manage a range of investment portfolios, each with a designated manager, who has the responsibility of researching and selecting then appropriately weighting various investments to deliver a defined objective.
We monitor your investment account to ensure it remains aligned with the portfolio set down by the relevant manager making adjustments when required and providing you with a consolidated taxation statement for your investment each financial year.
Fees matter and have a big impact on your net investment returns. That is why effective 1 May 2022, we are simplifying our fee structure to be 0.55% capped at $550 per year no matter how much you invest.
You (or each entity) can have several InvestSMART diversified portfolios combined and you will only pay the one capped fee.
Read more about Capped Fees.
Indirect Management Fee
Many of our investments utilise Exchange Traded Funds (ETFs) as we believe they offer our clients diversified, liquid and low-cost exposure to a number of asset classes in Australia and overseas.
Exchange Traded Funds as the name would suggest are listed on an exchange, in this instance the Australian Stock Exchange (ASX), by Fund Managers who in turn charge a modest management fee on a percentage basis.
We are conscious that this fee will impact your overall returns and it is closely monitored for each portfolio; at the time of print, it varies from 0.09% p.a. to 0.30% p.a.
Our investors are the legal owner of the holdings in their account. We open a brokerage account on your behalf and your investments are registered in your name with CHESS.
Because of this there are brokerage charges. InvestSMART has an agreement with a third party to provide brokerage services at a wholesale rate. Those costs are $4.40 per transaction or 0.088% of the traded value, whichever is greater.
For example, $1,000 acquisition of ABC = $4.40 but $10,000 acquisition of ABC = $8.80.
It is important to note that our investments are not actively trading and we do not receive a cent of the costs associated with trading.
We would highly recommend checking the current Product Disclosure Statement for updated details regarding all fees before making any investment decision, and please feel free to contact us at firstname.lastname@example.org if you require further clarification.