Sharechat Logo

Advisers brace for fees hike on funds

By Michael Coote

Friday 9th June 2000

Text too small?
Australian managed funds fees will rise as a result of the 10% GST to be introduced across the Tasman on July 1, financial advisers have been told.

A letter circulated to the industry from Gerard Doherty, general manager retail business at Sydney-based Perpetual Investments, warns of a fees hike.

Perpetual will have to alter its trust deed for its cash management fund to permit an increase of its responsible entity fee from 1% to 1.094%, Mr Doherty writes.

Other Perpetual funds affected will be the industrial share fund, the fidelity global funds, the investor choice fund and the investor choice retirement fund. Short supplementary prospectuses will be issued to cover GST changes.

Fees and commissions of managed funds are subject to GST. Investors will get some relief as cost savings must be passed on to investors under the Trade Practices Act 1974 and according to guidelines published by the Australian Competition and Consumer Commission. Additional relief will come from reduced input tax credits, which the Australian Tax Office will allow on managed funds that have management expense ratios and entry fees.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Sky continues sports drive with extension to netball rights
Apple's asset-shuffling puts $270m value on PowerbyProxi
Fonterra lifts payout forecast on improving global dairy prices
22nd October 2019 Morning Report
NZ dollar hovers near 64 US cents in favourable risk environment
Broader review powers eyed for Climate Change Commission
MARKET CLOSE: NZ shares edge lower as global ructions weigh; Tourism Holdings sinks
NZ dollar rises as markets bet on US interest rate cut
Fonterra seeks further changes to dairy act
Tilt, Oji say transmission changes may discourage new generation

IRG See IRG research reports