Unit Trust Fees


What are the fees?


You will be charged fees for investing in the Unit Trust Scheme.  Fees are deducted from your investment and will reduce your returns.  If Generate invests in other funds, those funds may also charge fees. Small differences in these fees can have a big impact on your investment over the long-term.  The fees you pay will be charged in two ways:

- regular charges (for example, annual fund charges). 

- one-off fees (currently none).

 

Total estimated annual fund charges

Fee

Focused Growth Trust

Management Fee

1.20%

Administration Fee and other expenses

0.20%

Underlying Fund Base Fee

0.28%

Underlying Fund Performance Fees

0.09%

Estimated Total Annual Fund Charges

1.77%

 

Management Fee

Generate performs management services for the Scheme. The fee for these services is based on the net asset value of the Trust. The fee is calculated daily and paid to us each month. Currently the fee is 1.20% of the net asset value of the Trust each year.

Other administration fees and expenses

Administration services are provided to the Trust by the Manager, Administrator and Supervisor. The fees of the Administrator and Supervisor are based on the net asset value of the Trust. These fees are calculated daily and paid each month. The Supervisor and Administrator may also be paid additional fees for non-routine matters, as the Manager may agree from time to time.

Other operating and administration expenses (such as auditing and legal expenses, postage, and other expenses) will be incurred to operate the Trust. Such fees and expenses reduce the Trust’s unit price.

Currently these fees and expenses are estimated at 0.2% of the net asset value of the Trust each year (excluding transaction costs e.g. brokerage and buy-sell spreads). To the extent that actual fees and expenses exceed this amount, we may choose not to recover them.

Underlying fund fees

The Trust invests into underlying funds. Most of the managers of these funds will charge fees for investing the Scheme’s money and may change the fees they charge from time to time. These fees will affect the value of these funds’ investments, and will be reflected in the Growth Fund’s and the Focused Growth Fund’s unit price. The underlying funds’ fees will differ depending on the products into which we decide to invest.

There are two types of fees charged by underlying managers:

(i) Base fees
The underlying funds’ base fees provided in the estimated annual fund charges reflect the total estimated charges for management fees from the underlying funds.

(ii) Performance fees
The underlying funds’ performance fees provided in the estimated annual fund charges reflect the total estimated charges for performance fees from the underlying funds.

Example of how fees apply to an investor

Hannah invests $10,000 in the Trust.  She is not charged an establishment fee or a contribution fee. This means the starting value of her investment is $10,000. She is charged management fees, which work out to about $177 (1.77% of $10,000). These fees might be more or less if her account balance has increased or decreased over the year.

Estimated total fees for the first year

Fund charges: $177