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 are estimates only and are based on the financial year ended 30 June 2020. The actual investment fee applied may differ (ie higher or lower) from the estimated fees and may change without prior notice.
Where a tax deduction is available 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. This means that performance fees do not affect the investment fee or the administration fee. However, some investment options may indirectly incur performance-related fees. These are only incurred where investment managers outperform an agreed target return for their assigned investment portfolio within the investment option.
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.
Performance-related fees affect all of Rest’s investment options, except for Basic Cash. The performance-related fee the investment managers receive and the target returns vary year to year. These performance-related fees are included in the investment fee and so will result in the investment fee increasing or decreasing from time to time, are not an additional fee and do not affect the administration fee.
Indirect cost ratio
The indirect cost ratio varies and depends on the investment option you are invested 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.