You will be charged fees for investing in Generate Managed Funds. 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).
The management fee is based on the net asset value of the Managed Fund. This fee is calculated daily and paid to us each month. Currently the fee is 1.10% of the net asset value of the managed fund each year.
Administration services are provided to the Managed Fund by the Manager, Administrator and Supervisor. The fees of the Administrator and Supervisor are based on the net asset value of the Managed Fund. 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 Managed Fund. Such fees and expenses reduce the Managed Funds unit prices.
Currently these fees and expenses are estimated at 0.2% of the net asset value of the Managed Fund each year (excluding transaction costs e.g. brokerage and buy-sell spreads).
The Managed Fund’s assets are held indirectly via certain wholesale funds managed by us. We do not charge any additional fees in relation to those wholesale funds. However, the Managed Fund (via the relevant wholesale funds) invests into third party underlying funds. Most of the managers of these funds will charge fees for investing the Managed Fund’s money and may change the fees they charge from time to time. These fees will affect the value of the Managed Fund’s investments and will be reflected in the Managed 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.
Hannah invests $10,000 in the Focused Growth Fund. 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 $143 (1.43% 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: $143