The investment fees shown above are deducted from the assets of the relevant investment options before the unit price is determined. The investment fee is expressed as an annual percentage of each investment option.
For each investment option, the investment fees (including performance-related fees) listed above shows estimates of these fees and costs based on information for the 12 months ending 30 June 2021. For Sustainable Growth, this includes several components which are estimates such as new managers’ estimates and assumptions. The actual amount charged in subsequent financial years will depend on the actual costs incurred in those years. Future fees and costs may differ from previous years’ fees and costs.
Where a tax deduction is available to the fund for investment fees and expenses, the benefit is passed onto members through lower taxation and reduced investment fees. Your annual statement will disclose the investment fees (including performance-related fees) that have been applied to your investment for the year.
Performance and performance-related fees
We do not charge a performance fee. Some investment options however may incur performance-related fees which are included as part of the investment fee. Because performance-related fees are only incurred if investment managers outperform an agreed target return, this may result in the investment fee changing from time to time. Performance-related fees and target returns may also vary from year to year.
Performance-related fees for each investment manager may be calculated differently. However, they all have the following common elements:
- only payable to a manager if they exceed a target level of return;
- calculated and accrued regularly (where possible), and incorporated into the calculation of unit prices; and
- typically payable annually.
Indirect cost ratio
The indirect cost ratio varies and depends on the investment option you have selected to invest in. Each investment option has an indirect cost ratio made up mainly of any indirect costs incurred by the underlying investment vehicles or investment managers. Indirect costs can include expenses such as transactional or operational costs and administrative costs. These are estimated costs based on the information provided to Rest and will vary from year to year depending on the composition of the underlying fees and costs associated with the investment.