Fair and Simple Fees
You should be able to see clearly both what investments are being made on your behalf and how much you can expect to pay for our management. This can equally apply to the cost of any advice that you may receive about how to invest. The cost of advice should be clear and separate from the cost of investment management. There are no advice costs built into our Funds – you should seek separate financial advice if you feel that you need to do so.
We chose to combine the investment management, Trustee, custodial, fund accounting, unit pricing, registry, audit, legal and other expenses in one low management fee. To incentivise Milford to do well we also charge a performance fee in some of our unit trust funds if we achieve certain investment targets (or benchmarks).
To the extent that assets of the Milford Balanced Fund are invested in any other Milford funds the Balanced Fund will be fully rebated for the management fees charged within those funds. However, any performance fee charged by Milford in respect of those funds will remain payable.
There are no entry or exit fees for the Milford Unit Trust PIE Funds.
The fees for the Milford Unit Trust PIE Funds are summarised below.
|
Milford Income Fund |
Milford Balanced Fund |
|
|---|---|---|
|
Capped Management Fee* |
0.65% |
1.05% |
|
Performance Fee |
10% of the performance on the Income Fund (after deducting the management fee) above the investment objective is potentially payable to Milford |
None paid directly from the Balanced Fund, although Milford will receive performance fees on any Balanced Fund investments into the Milford Income, Active Growth and Trans-Tasman Unit Trust Funds in its capacity as manager of those other funds |
|
Milford Active Growth Fund |
Milford Trans-Tasman Fund |
|
|---|---|---|
|
Capped Management Fee* |
1.05% p.a. |
1.05% p.a. |
|
Performance Fee |
15% of the performance of the Active Growth Fund (after deducting the management fee) above the investment objective of 10% p.a. is potentially payable to Milford |
15% of the performance of the Trans-Tasman Fund (after deducting the management fee) above the investment objective is potentially payable to Milford |
* Includes management fee paid to Milford as well as fees for Trustee, custody, registry, fund accounting, unit price, audit services and any other normal operating costs of running the Funds (including applicable GST). It excludes abnormal costs, brokerage and any performance fees. The Balanced Fund usually has an allocation to international investments. Any international management fees charged by International Fund Managers are in addition to any Milford fees and are deducted within each fund.
