Trailing Fees and Commissions

Most Managed Funds, Superannuation, Pensions, Master Trust & Wrap accounts have;

Entry Fee's - up to 5% of each amount invested (Your Entry Fees will be reduced to 0% once YourShare is your nominated broker)

Management Expenses (MER) - paid out of your investments to the fund manager annually, for managing your investments and fund expenses

Yearly Trailing Fees & Commissions - up to 1.2% of the total value of your investments each year (these amounts are collected towards your Yearly Cash Back service)

Trailing commissions are not well known or understood and can have a significant impact on your wealth creation. "Trailing commissions" are yearly commissions that are paid to your broker or financial adviser, by fund managers. Where no broker or financial adviser is recorded on your investments these payments are retained by the fund manager.

Who the fund managers pay trailing commissions to does not affect the performance of your investments or your control over your investment decisions. Trailing fees and commissions typically range from 0.25% to 1.2% of the total value of your investments, and are paid EVERY YEAR for the life of your investment.

Per Choice magazine - Trail commissions – October 2005

“Millions of dollars per year are paid by fund managers to financial planners and discount brokers in the form of ongoing commissions, known as trails or adviser service fees. These commissions are paid out of the money you invest. They’re supposedly for ongoing service but in many cases the planner doesn’t provide any ongoing investment review or advice”