New Fees and Costs Disclosure Requirements
New Fees and Costs Disclosure Requirements for Product Disclosure Statements
The Australian Securities and Investments Commission (ASIC) issued new fees and costs disclosure requirements through ASIC Class Order 14/1252 and Regulatory Guide 97 – Disclosing fees and costs in PDSs and periodic statements (RG97). In accordance with these new requirements we have updated our fees and costs disclosure in our Product Disclosure Statements, which should be read together with the Additional Information to the Product Disclosure Statements (collectively the ‘PDS’).
The enhanced fee and cost disclosure requirements aim to provide investors with more consistent and comparable fees and costs across all superannuation and managed investment products.
Changes to BTIM’s PDSs
Under the new fees and costs requirements, the way we disclose management costs in our updated PDSs, issued 18 September 2017, has changed.
Previously, the management costs disclosed consisted of the following components; issuer fee and any expense recoveries and performance fees (if applicable). Management costs disclosed in our PDS now also include indirect costs.
Indirect costs are certain costs which we reasonably estimate have reduced, directly or indirectly, the return of a fund. Indirect costs may include underlying investment manager fees and costs, performance related fees (if applicable) and certain derivative costs. They are reflected in the unit price of the fund and are not charged to investors as a fee or retained by BTIM.
Our updated PDSs also include changes to the disclosure of performance fees and disclosure of transactional and operational costs and borrowing costs (if applicable).
How do these changes impact investors?
It is important to note that although there is added disclosure of fees and costs, there are no new fees or costs, no increases to any fees and costs being charged to investors nor any changes in the way fees and costs are charged. This means that the returns of the Fund (and therefore an investment in the Fund) are not impacted by these changes.
If you have any questions about these changes, please contact BT Customer Relations on 1800 813 886 between 8.00am and 5.30pm (Sydney time), Monday to Friday.
This article has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332, AFSL No 431426 and the information contained within is current as at September 18, 2017. It is not to be published, or otherwise made available to any person other than the party to whom it is provided.
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