For all required reading, please read the Service Guide.
This document, referred to as the Wealth Accelerator Multi Asset Portfolio Service Guide (‘Wealth Accelerator Guide’), has been prepared and issued by Netwealth Investments Limited (ABN 85 090 569 109, AFSL 230975) (referred to in this Wealth Accelerator Guide as ‘Netwealth’, ‘we’, ‘us’ or ‘our’). It is designed to give you the information you need to decide whether to invest in the Wealth Accelerator Multi Asset Portfolio Service (‘Wealth Accelerator’).
Wealth Accelerator comprises the Netwealth Wrap Service (‘Wrap Service’) which is an investor directed portfolio service (‘IDPS’), and an administration service for eligible non-custodial assets held outside of the Wrap Service (which is in addition to the IDPS). Netwealth is the operator and administrator of Wealth Accelerator and custodian of the Wrap Service. This Wealth Accelerator Guide is the IDPS guide for the Wrap Service.
For help about investing generally, you should speak to a registered financial adviser. The Australian Securities and Investments Commission (‘ASIC’) can help you check if a financial adviser is registered by calling them on 1300 300 630 or by checking on their website: moneysmart.gov.au.
The documents (‘Disclosure Documents’) you need to consider when deciding whether to invest using Wealth Accelerator are listed on page 6. These documents are available from our website at netwealth.com.au (‘our website’) and we will provide a paper copy free upon request. If obtaining an electronic copy, you should ensure you have a complete copy of the Disclosure Documents relevant to you including ‘Portfolio Service Guide 1a: Operating your Wealth Accelerator account’ (‘Portfolio Service Guide 1a’), ‘Portfolio Service Guide 2: Premium Service for Wholesale Clients’ (‘Portfolio Service Guide 2’) and the relevant Application Forms Booklet.
This offer is only available to persons receiving the Disclosure Documents within Australia and does not constitute an offer in any other jurisdiction or country.
General information only
The information provided in the Disclosure Documents is general information only and is not intended to imply any recommendation or opinion about a financial product. This information does not take into account your personal objectives, financial situation or needs. You should consider whether the information is appropriate for you, and whether Wealth Accelerator is suitable for you, in light of your personal objectives, financial situation and needs and you should consider consulting a financial adviser before making a decision about the suitability of, and whether to invest using, Wealth Accelerator. Before making a decision to invest or continuing to invest in an investment that is accessible or administered through Wealth Accelerator, you should consider the product disclosure statement (‘PDS’), any target market determinations (‘TMDs’) or other disclosure document relating to that investment.
Information in the Disclosure Documents is based on taxation and other relevant laws and their current interpretation at the date of issue. If at any time a feature of Wealth Accelerator as described in the Disclosure Documents is not consistent with our legal obligations, our legal obligations will prevail.
Contact details
Postal address
Netwealth Investments Limited
PO Box 336
South Melbourne VIC 3205
Freecall 1800 888 223 (within Australia)
Phone 03 9655 1300
Fax 03 9655 1333
Email contact@netwealth.com.au
Website netwealth.com.au
Important warnings about investment risk and the differences between direct and indirect investment
Any managed fund, listed security or other investment acquired or administered using Wealth Accelerator is subject to investment risk (see Portfolio Service Guide 1a). Neither Netwealth nor any associated company guarantees that you will earn any return on your investments, or that your investments will gain or retain their value. Also, there are important differences between acquiring a financial product directly and acquiring a financial product using an IDPS, including in relation to cooling-off rights, voting rights, participation in legal proceedings and withdrawal rights in circumstances where the disclosure document for the underlying asset is defective, the minimum subscription amount for the offer is not raised or where the disclosure document for the underlying asset states that the underlying assets are to be quoted on a financial market but no application for admission to quotation is made or the underlying assets are not admitted to quotation. These areas of difference are summarised on page 55 under ‘How do direct and indirect investments differ?’. See also ‘How are the voting rights attached to your investments exercised?’ on page 57 and ‘Communications about your investments’ on page 59.
About the Wealth Accelerator Multi Asset Portfolio Service
Wealth Accelerator provides a comprehensive reporting, transactional and administrative service which enables you, through us as operator of Wealth Accelerator, to buy, hold and sell investments from an extensive menu of investment options[1], via a single account. Importantly, you maintain control of your investments and your investment decisions. You, and your financial adviser, if you have one, assess your objectives, determine strategies, and then select the appropriate investments.
Wealth Accelerator provides a choice between Wealth Accelerator Core and Wealth Accelerator Plus, which offer different investment options, and services, and have different administration fees.
Wealth Accelerator comprises:
- the Wrap Service which is an IDPS; and
- an administration service for eligible ‘non-custodial assets’ held outside of the Wrap Service, which is only available using Wealth Accelerator Plus.
When you use Wealth Accelerator, your cash transaction account and most investment options, such as term deposits, fixed term annuities, managed funds, managed models and listed securities, are held by us as your custodian using the Wrap Service.
The administration service for non-custodial assets is in addition to the Wrap Service. Non-custodial assets are held by you in your own name or by an alternative external custodian on your behalf, but are administered by us on your behalf (i.e. they are not held in custody by us). Non-custodial assets include investment options that are not available to you in the Wrap Service such as private equity partnerships and internationally domiciled managed funds.
You should consider seeking professional advice in relation to Wealth Accelerator’s suitability for your personal objectives, financial situation or needs. You may nominate a financial adviser (‘Nominated Financial Adviser’) in connection with your Wealth Accelerator account. Your Nominated Financial Adviser can assist you with operating your account and provide you with advice about your investments and other benefits. Your Nominated Financial Adviser must generally hold, or provide services on behalf of someone who holds, an Australian Financial Services Licence (‘AFSL’).[2] The holder of an AFSL is referred to in the Disclosure Documents as an ‘AFS Licensee’.
You are not required to have a financial adviser in order to use Wealth Accelerator. However, if you do not, some features may not be available to you. See ‘Using a financial adviser’ on page 54.
About the Wealth Accelerator documents
Disclosure Documents
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Accessing these documents: All of the Wealth Accelerator documents described in this section are available:
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We have published a number of documents to help you understand Wealth Accelerator and how it works. The Disclosure Documents comprise:
- this Wealth Accelerator Guide; and
- the following documents, which contain information that is taken to be included in this Wealth Accelerator Guide:
- Portfolio Service Guide 1a: Operating your Wealth Accelerator account
- Portfolio Service Guide 2: Premium Service for Wholesale Clients
This Wealth Accelerator Guide contains a summary of the benefits, key features, operation, risks, fees and costs and terms and conditions of Wealth Accelerator. The portfolio service guides contain additional information about Wealth Accelerator as follows:
- Portfolio Service Guide 1a:
- provides more information on how your account works, your investment choices within Wealth Accelerator and the risks associated with Wealth Accelerator, and the investments you can make using Wealth Accelerator;
- provides information about how returns on investments are taxed; and
- provides information about the benefits and features of using Wealth Accelerator to help you manage your Self Managed Superannuation Fund (‘SMSF’) investments.
- Portfolio Service Guide 2 provides more information on available investments and features if you are an investor who qualifies as a Wholesale Client. It includes a description of the Premium Service that is available to Wholesale Clients and the fees that apply to the Premium Service.
We have also published TMDs for Wealth Accelerator Core and Wealth Accelerator Plus which provide information about the type of person that Wealth Accelerator is designed for.
Application Forms Booklet
To apply to open your account in Wealth Accelerator, you can either complete an application online on our website or the ‘Application’ form that is contained in the relevant Application Forms Booklet, available on our website, from a financial adviser or by contacting us on Freecall 1800 888 223.
Non-custodial assets – limited Power of Attorney
If you would like us to administer any non-custodial assets, you must appoint Netwealth as your attorney by executing a limited power of attorney (‘LPOA’). A copy of the ‘Non-custodial Power of Attorney’ form is available in the Application Forms Booklet, or from us free of charge upon request. An original copy of this form must be mailed to Netwealth.
Investment Menu
Information about each of the investment options available using the Wrap Service through Wealth Accelerator is contained in the ‘Investment Menu’ in the ‘Forms and documents’ section of our website or from us, free of charge, on request.
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Warning: If in the future you invest further amounts, choose to use additional features or select different investments, you should review the relevant disclosure documents and for listed securities, have regard to publicly available information about those listed securities before doing so as conditions and features may have changed. |
The Investment Menu provides details of the term deposits, fixed term annuities, managed funds and managed models available using the Wrap Service through Wealth Accelerator. Each of these investment options has its own PDS and a TMD which are available on our website through the Investment Menu. You should read the PDS of any investment option that you are considering investing in using Wealth Accelerator. You should also consider the TMD for the investment option which provides information about who the product is designed for.
For Australian listed securities, most securities listed on the Australian Stock Exchange (‘ASX’) are available for investment using Wealth Accelerator Plus. We may also approve securities listed on other Australian securities exchanges for investment using Wealth Accelerator Plus. For international securities, a list of available overseas exchanges and approved international securities available using Wealth Accelerator Plus is available on our website through the Investment Menu.
If you choose Wealth Accelerator Plus, many other types of investment options not listed above can be administered by us as non-custodial assets. Information about the investment options that can be administered by us as non-custodial assets is available in Portfolio Service Guide 1a.
Financial Services Guide
Our Financial Services Guide (‘FSG’) contains important information about the services we provide to help you decide whether you want to use our services, including:
- information about Netwealth and who we are;
- the financial services and products we offer to you;
- how we, and our associates, are paid; and
- how we deal with complaints about the services and products we provide to you.
Changes to these Wealth Accelerator documents
Changes that may affect your account will be updated in the Disclosure Documents or on our website. You should check from time to time to see if any of the changes are important to you. You will also be notified of material changes as required by law.
Information about investments made using Wealth Accelerator
Before investing in any unlisted financial product that is offered or can be administered using Wealth Accelerator, you must be given and you should read any current PDS or other disclosure document for that product issued by the product issuer, which will generally include information about that investment such as risk/return profile, the associated costs and other detailed information. You should also consider the TMD (if applicable) for the unlisted financial product which provides information about who the product is designed for. If you use a financial adviser, they should give you any current PDSs or other disclosure documents for that financial product. For investment options accessible through the Wrap Service, these documents are also available on our website or by contacting us. Before investing in listed securities using Wealth Accelerator, you should have regard to publicly available information about those listed securities.
Benefits of Wealth Accelerator
Who can invest using Wealth Accelerator?
| Individuals, joint investors, trusts and families | Wealth Accelerator provides investment administration and reporting services for individuals, joint investors and trusts. Families can benefit from reduced costs by grouping accounts whilst maintaining their individual investment holdings. |
| Wholesale Clients | Wealth Accelerator also provides additional investment options specifically for individuals who qualify as a Wholesale Client and who use the Premium Service available in Wealth Accelerator Plus. |
| SMSFs | Wealth Accelerator enables the implementation of a diversified investment strategy for SMSFs and provides specific reporting to help SMSFs meet regulatory and tax obligations. |
| Companies | Wealth Accelerator facilitates investment by corporate entities, providing specific reporting to help companies meet their tax obligations. |
What are the benefits of using Wealth Accelerator?
Online convenience
Wealth Accelerator provides the convenience of online access to your account. You can access information about your investments and transactions, and you can change your account details, by logging into your account online on our website. Your instructions to perform many of the transactions described in the Disclosure Documents can be submitted online through your account. This removes the need for you to complete paper-based forms and reduces the time between issuing instructions and having transactions implemented. You can choose the level of online access you require when you complete your application.
Offline options
You do not have to operate your account online. You may instruct us to do a transaction or change your account features by completing a form and sending it to us. Forms for most transactions described in the Disclosure Documents are available on our website, from a financial adviser or by contacting us directly. If you choose to instruct us to do a transaction by completing a form, rather than transacting online, then the offline transaction fee may apply (see page 45 for details of the offline transaction fee).
Convenience and control
Because Wealth Accelerator centralises your investments and transactions, you benefit from:
- the simplicity of only dealing with one contact for your investment transactions;
- consolidated reports covering all the investments in your account, rather than different statements from each investment;
- easier tax and record-keeping; and
- control over what you invest in – we act on your instructions.
Wealth Accelerator allows you to invest either online or by filling out the appropriate form. We implement your instructions and you have control over your investments. We can keep track of your investments, collect all income and provide consolidated tax and performance reporting. We can handle all transactions relating to your investment choices, acting on your buy and sell instructions, and arranging administration of your investments.
Investment choice and diversification
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Investment options: Portfolio Service Guide 1a provides more information about the investment options available in Wealth Accelerator. Information about each of the investment options available through the Wrap Service is contained in the Investment Menu on our website. |
When applying to use Wealth Accelerator, you can choose either Wealth Accelerator Core or Wealth Accelerator Plus.
If you choose Wealth Accelerator Core, you can establish an easy-to-manage diversified investment portfolio from a more focussed range of investments and investment strategies provided through managed funds and managed models. You also have access to certain term deposits provided by Australian banks. Investments in Wealth Accelerator Core are held by us in custody through the Wrap Service.
If you choose Wealth Accelerator Plus, you can choose from a more extensive range of investment options, enabling you to construct a diversified investment portfolio from a wide range of investment types. With Wealth Accelerator Plus you have access to the full menu of investment options available in the Wrap Service and can also access investments we agree to administer as non-custodial assets. In addition, if you are a Wholesale Client, you can use the Premium Service.
| Wealth Accelerator Core | Wealth Accelerator Plus |
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A cost effective and easy-to-manage portfolio administration service, providing the ability to invest in:
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A portfolio administration service that provides you with access to an extensive range of investment options, managed or administered and reported through a single platform. Investment options include:
and for Wholesale Clients:[10]
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Wealth Accelerator Core is designed for those consumers who:
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Wealth Accelerator Plus is designed for those consumers who:
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Features at a glance
The following tables provide a summary of some important features of Wealth Accelerator. You should ensure that you read the Disclosure Documents in full, as well as any PDS or other disclosure documents relating to each of the investments in which you choose to invest using Wealth Accelerator.
How Wealth Accelerator works
Opening an account
To open a Wealth Accelerator account, once you have read the Disclosure Documents, you can complete an application online on our website, authorise it[18] and send it to us. Alternatively, you can open an account offline by completing the ‘Application’ form that is contained in the relevant Application Forms Booklet for Wealth Accelerator available from our website, from a financial adviser or by contacting us on Freecall 1800 888 223, signing the forms and sending them to us.
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Deposits: Instructions on how to make deposits can be found in the relevant Application Forms Booklet. |
You then need to submit your application together with your investment amount. We may at our discretion refuse to accept initial deposits of less than $10,000. Once we have received and accepted a correctly completed application, all deposits are paid into your cash account.
Wealth Accelerator Core or Wealth Accelerator Plus
When you apply to open your account, you must choose either Wealth Accelerator Core or Wealth Accelerator Plus, which offer different investment options and have different administration fees. You cannot choose both Wealth Accelerator Core and Wealth Accelerator Plus within the same account.
If you would like us to administer non-custodial assets in your Wealth Accelerator Plus account, you must also appoint Netwealth as your attorney by executing the non-custodial LPOA and returning it to us along with your application form, or in any event before we commence administering any non-custodial assets.
How your cash account works
Once you have established your Wealth Accelerator account, further amounts received in connection with your investments (such as interest on term deposits and distributions from managed funds) are also paid into your cash account.
The cash account is the central transaction account for your Wealth Accelerator account. All cash in the cash account is held by us in one or more interest-bearing trust accounts on deposit with an Australian bank. The funds in your cash account earn monthly interest at a variable rate which is no less than 0.80% p.a. below the average target cash rate set by the Reserve Bank of Australia for the month (which is often referred to as the official cash rate ('Official Cash Rate')).[19] If you hold more than $250,000 in your cash account then the rate may be lower on part or all of the amount over $250,000. Information about the rate of interest you earn on funds held in your cash account is published on our website.[20]
If you close your account, interest in relation to the funds held in your cash account during the month in which your account is closed, is paid at the most recent interest rate published on our website as at the date your account is closed.
You must maintain a minimum cash balance of 1% of your account balance (excluding any non-custodial assets we administer on your behalf) or $500, whichever is greater, up to a maximum of $5,000, plus sufficient funds for regular payments and LifeWRAP premiums.
Selecting investments
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Investment options: More information about the investment options available in Wealth Accelerator is available in the ‘Managing your custodial assets’ and ‘Managing your non-custodial assets’ sections of Portfolio Service Guide 1a. Information about each of the investment options available in the Wrap Service is contained in the Investment Menu on our website. |
Wealth Accelerator makes available a wide range of investment options. This enables you to select investments to construct a diversified investment portfolio. Your funds remain in your cash account until you select the investments you wish to include in your Wealth Accelerator account. We then arrange the acquisition of investments in accordance with your instructions.
Most investments including approved term deposits, fixed term annuities, managed funds and listed securities are acquired and held in your account through the Wrap Service. These investments are held on your behalf and in our name.
We can also administer a range of other investments on your behalf through your Wealth Accelerator Plus account as non-custodial assets. Non-custodial assets are held in your own name or by an alternative external custodian on your behalf. You can instruct us to apply for non-custodial assets on your behalf or you can apply for the investment yourself and nominate us as your administrator and mailing address.
We only arrange the acquisition of selected investments if there are sufficient cleared funds in your cash account. Full details of how the cash account operates are set out in the ‘How your cash account works’ section in Portfolio Service Guide 1a.
The financial products, securities and other investments that are available using Wealth Accelerator are determined by us based on demand and our ability to administer them. We review the available investment options frequently. When deciding whether or not to include an investment option, we may consider suggestions by financial advisers or clients, and our assessment of the likely demand for the investments. We also consider operational requirements for the product, our capacity to provide custody or administration of the product and the costs of providing custody or administration of the product. We may include products in which we have an interest as issuer, operator or responsible entity, including the GSS funds and the Netwealth Managed Account Service. See page 65 for information on how we deal with conflicts of interests that arise. We will also receive fees from providers of certain investment options that are available using Wealth Accelerator. These fees are for the inclusion of products on the menus and for administrative activities we undertake for the product issuers or managers.
We do not utilise an investment or due diligence committee to select investments for Wealth Accelerator. We neither undertake our own research into the merits of the financial products available using Wealth Accelerator nor have regard to research recommendations. We do not consider the risks, the likely performance or the extent to which market conditions, liquidity, asset allocation or diversification may impact on an investor in those products. Therefore, the fact that we make a product available through Wealth Accelerator is not, and must not be taken to be, an endorsement of the product by us or a recommendation by us to invest in that product. We are not responsible for any investment made using Wealth Accelerator except, in the cases of the GSS funds, the Netwealth Managed Account Service and any other products we issue from time to time, to the extent we are acting in our capacity as the responsible entity of those products. Investors in Wealth Accelerator Core are restricted to the investment options listed on page 9 and include investments of which we are the responsible entity.
Before making any investment using Wealth Accelerator, you and/or your Nominated Financial Adviser should undertake your own research, consider any relevant PDS and TMD or other disclosure document or publicly available material relating to the investment and carefully consider whether the investment is appropriate for you in light of your personal objectives, financial situation and needs.
How to withdraw your money
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Minimum balances: A minimum of $100 must be maintained in any particular investment you hold in the Wrap Service. The PDS or other disclosure document for a managed fund or other investment option may specify an alternative minimum amount and it may be necessary for us to comply with this minimum for your investment. |
You can request a withdrawal from your Wealth Accelerator account at any time.
You can withdraw any amount in your cash account classified as ‘available for investment’. If there are insufficient funds in your cash account to provide the amount of cash you wish to withdraw, you can request your investments held using Wealth Accelerator be redeemed or sold. The proceeds are paid into your cash account once we receive and allocate them (refer to Portfolio Service Guide 1a for details on timing). If any of the investments to be redeemed or sold are not liquid[22] this may delay the payment of your withdrawal request.
If you have sufficient funds in your cash account, the withdrawal amount requested is transferred to one of your nominated bank accounts within three business days, or within three business days of sufficient funds becoming available to cover the withdrawal.[23]
Payment of withdrawal proceeds is only made to one of your nominated bank accounts or to payees entered through the Pay Anyone or BPAY facilities (or other bill payment facilities that we may make available). If you change one of your nominated bank accounts, payments to your new account may be delayed until the change of account has been completed.
You are generally also able to transfer assets held in the Wrap Service out of Wealth Accelerator, either into your own name or to an account you hold in another wrap or custodial service.[24]
If you wish to close your Wealth Accelerator account and any of the investments that we hold for you are not liquid, we continue to operate your account until those investments become liquid, are sold down and your payment is made. In some cases, it may be possible for you to arrange for us to transfer illiquid investments out of the Wrap Service, rather than waiting for them to become liquid.
Alternatively, if you wish to close your Wealth Accelerator account, or the service is terminated, you can generally instruct us to transfer any assets we hold for you, to you, or to another person lawfully nominated by you. Assets are transferred within a reasonable time, subject to any lien or charge over the assets.
In some cases, we receive income or other payments in connection with an investment some weeks or even months after the investment is sold or redeemed or transferred. Therefore, to ensure you receive these payments, where you withdraw all your investments from your Wealth Accelerator account, we keep the account open for up to two months after completion of a full withdrawal. Any payments we receive after the investment is withdrawn continue to go into your account and, at the end of this period, we close your account and pay any balance to the same bank account as the withdrawal that closed your account or one of your nominated bank accounts.
Risks
All investing involves some degree of risk. The values and returns of most investments fluctuate. Generally, the higher the potential return from an investment, the greater the associated risk. A general aim of investment is to maximise return while keeping the associated risks at a level the investor is comfortable with. A recognised strategy to assist in achieving this goal is diversification, which means spreading the total amount invested between a number of different investments.
It is important that you understand the applicable risks before you deposit funds in Wealth Accelerator, make investments using Wealth Accelerator and use certain features of Wealth Accelerator. You should carefully read the Disclosure Documents together with any PDSs or other disclosure documents and any publicly available information for any investment you make using Wealth Accelerator for an explanation of the applicable risks.
You should also consider getting professional investment advice that is tailored to your investment objectives, financial situation and particular needs as this will assist you in deciding whether you are comfortable with the risks involved. If you do not understand all of the risks associated with Wealth Accelerator described in the Disclosure Documents, or you do not understand all of the risks of an underlying product invested in using Wealth Accelerator, you should ask a financial adviser, or an investment professional, to explain them to you.
Risks associated with Wealth Accelerator itself
There are risks associated with the operation of Wealth Accelerator including:
- operator risks – risks that affect Netwealth itself that could result in Wealth Accelerator being terminated or Netwealth being replaced as administrator or operator;
- operational risks – whilst we have systems and processes in place to support effective and efficient operations, we cannot eliminate the risk that a transaction or instruction might not be processed or implemented correctly;
- systems risk – an interruption or fault or failure in any part of our computer or telecommunications systems or a breach of our online security could impact on our ability to provide the services described in this Wealth Accelerator Guide; and
- administration risk - delays in the purchase or sale of non-custodial assets could occur because of the time required for us to complete paperwork and to source or confirm information required to facilitate the instruction.
These and other important risks are further explained in Portfolio Service Guide 1a.
Risks associated with investments made using Wealth Accelerator
The major potential risks associated with investing using Wealth Accelerator depend on the investment options you choose. Investments made using Wealth Accelerator carry investment risks which may impact on the value of your account and/or limit your ability to withdraw your funds. Key investment risks include:
- company or share risk – the chance of a specific share or security falling in value due to unexpected changes in the company’s internal operations or environment;
- market risk – economic, technological, political or legal conditions, and even market sentiment, can (and do) change and impact investment markets which can affect the value of your investments;
- fund manager risk – changes to a fund manager, such as loss of significant staff, or that a fund manager may not apply their stated investment philosophy, can impact on the value of your investment; and
- liquidity risk – the risk that you will not be able to withdraw from an investment when you want to. This could occur if withdrawals from a managed fund are suspended because the assets of the managed fund have become illiquid or, in the case of a listed investment, trading in that investment on the stock market is suspended for a substantial period of time.
Where you invest in international securities or internationally domiciled managed funds there may be additional investment risks that could impact on the value and liquidity of your investments, including risks associated with currency movements and with different conditions on overseas markets such as quality of information about investments, market regulation, trading conditions and types of investment.
More information about these risks and other investment risks that could impact on Wealth Accelerator are explained in Portfolio Service Guide 1a.
Fees and other costs
| Did you know?Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns.For example, total annual fees and costs of 2% of your account balance rather than 1% could reduce your final return by up to 20% over a 30-year period (for example, reduce it from $100,000 to $80,000).You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs.You may be able to negotiate to pay lower fees. Ask the fund or your financial adviser.To find out moreIf you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) Moneysmart website (www.moneysmart.gov.au) has a managed funds fee calculator to help you check out different fee options. |
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This section shows fees and other costs that you may be charged. These fees and costs may be deducted from your money or from the returns on your investment.
Tax information is set out on page 53 of this Wealth Accelerator Guide and in Portfolio Service Guide 1a.
You should read all of the information about fees and costs because it is important to understand their impact on your investment.
Fees and other costs for each managed fund, managed model, term deposit and other investment options available using Wealth Accelerator are set out in the relevant PDS or other disclosure document for that investment. For further information on fees and costs of investment options, refer to the ‘Additional explanation of fees and costs’ on page 39.
Fees and costs summary
Wealth Accelerator Core
Wealth Accelerator Plus
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| Ongoing annual fees and costs | ||||||||||||||
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Management fees and costs The fees and costs for managing your investment[32] The fees and costs relate only to administration and accessing investments using Wealth Accelerator Plus and do not include the fees and costs of the investment options.
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Administration fee – account fee[33] An account fee applies based on a percentage of your account balance,[34] plus a fixed amount. The total account fee is subject to a minimum daily amount. The percentage-based account fee is calculated as follows:
The ‘% applicable’ shown applies to the amount of the account balance shown. The fixed amount is calculated daily, at the rate of $240 per calendar year which applies to each Wealth Accelerator Plus account. The minimum total account fee is calculated daily, at the rate of $550 per calendar year and applies to each Wealth Accelerator Plus account. |
The account fee is calculated daily and is deducted monthly in arrears from your cash account, or on full withdrawal from your account. The tiered component of the account fee is calculated on your total account balance, including your cash account, term deposits, fixed term annuities, managed fund investments, Australian listed securities, international securities, managed models and other investments, including non-custodial assets we are administering on your behalf. The amount of this fee may be negotiated (see page 39 for details).
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PLUS Interest retained on the cash account We retain part or all of the interest that is earned on the pooled cash account.[35] The amount of interest we retain is set so that the rate of interest to be credited to investors' cash accounts is equal to the applicable declared interest rate available on our website. That is, the amount of interest we retain is equal to the amount of interest earned on the pooled cash account less the applicable declared interest rate available on our website. The rate of interest retained on the pooled cash account for the 12 months to 30 June 2025 was approximately 1.48% p.a.35 |
We retain our share of the interest from the total amount paid by the bank at the end of each month in respect of the pooled cash account. The rate of interest retained on the cash account may be negotiated (see page 39 for details). |
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PLUS Administration fee – international securities fee An international securities fee applies based on a percentage of the value of any international securities held for you in the Wrap Service. This fee is calculated as follows:
The ‘% applicable’ shown applies to the value of international securities held for you in the Wrap Service, based on the Australian dollar (‘AUD’) value of the securities. |
The international securities fee component of the administration fee is calculated daily and is deducted monthly in arrears from your cash account, or on full withdrawal from your account. The amount of this fee may be negotiated (see page 39 for details).
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PLUS Significant account fee The significant account fee of 0.055% p.a. only applies to very large accounts (or groups of accounts) with an aggregate balance of $30 million or more. |
The significant account fee is calculated daily and is deducted monthly in arrears from your cash account, or on full withdrawal from your account. The fee is calculated on your total account balance, including your cash account, term deposits, managed fund investments, Australian listed securities, international securities, managed models and other investments, including non-custodial assets we are administering on your behalf. The amount of this fee may be negotiated (see page 39 for details). |
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| Performance fees Amounts deducted from your investment in relation to the performance of Wealth Accelerator Plus |
Nil | Not applicable | ||||||||||||
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Transaction costs The costs incurred by Wealth Accelerator Plus when buying or selling assets |
See ‘Additional explanation of fees and costs’[36] | See ‘Additional explanation of fees and costs’ | ||||||||||||
| Member activity related fees and costs (fees for services or when your money moves in or out of Wealth Accelerator Plus)[37] | ||||||||||||||
| Establishment fee The fee to open your investment |
Nil | Not applicable | ||||||||||||
| Contribution fee[38] The fee on each amount contributed to your investment |
Nil[39] | Not applicable | ||||||||||||
|
Buy-sell spread An amount deducted from your investment representing costs incurred in transactions by Wealth Accelerator Plus |
Nil39 | Not applicable | ||||||||||||
| Withdrawal fee38 The fee on each amount you take out of your investment |
Nil39, [40] | Not applicable | ||||||||||||
| Exit fee38 The fee to close your investment |
Nil39, 40 | Not applicable | ||||||||||||
|
Switching fee The fee for changing investment options |
Nil39 | Not applicable | ||||||||||||
Example of annual fees and costs - Wealth Accelerator Core (excluding fees and costs of the investment options)
This table gives an example of how the ongoing annual fees and costs for Wealth Accelerator Core can affect your investment over a 1-year period. You should use this table to compare Wealth Accelerator Core with other investor directed portfolio services.
| EXAMPLE – Wealth Accelerator Core | Balance of $50,000 with a contribution of $5,000 during year[41] | |
| Contribution fees | Nil | For every additional $5,000 you put in, you will be charged $0 |
| PLUS Management fees and costs |
$225 Administration fee - account fee + 1.48% p.a. interest retained on the cash account[42] |
And, for the $50,000 you have in Wealth Accelerator Core you will be charged or have deducted from your investment $232.40 each year |
|
PLUS Performance fees |
Nil | And, you will be charged or have deducted from your investment $0 in performance fees each year |
|
PLUS Transaction costs[43] |
Nil | And, you will be charged or have deducted from your investment $0 in transaction costs |
| EQUALS Cost of Wealth Accelerator Core |
$232.40*[44] | |
*Note: Additional fees apply. This example is illustrative only and assumes that you have chosen Wealth Accelerator Core. Fees and costs may vary for your actual investment. The above example only shows the fees and costs that relate to accessing investments using Wealth Accelerator Core and does not include the fees and costs of the investment options, such as management fees and costs and buy-sell spreads set out in the relevant managed fund or applicable Managed Account PDS. Additional costs are charged by the issuers of those products that you decide to invest in. Refer to the following example that illustrates the combined effect of the fees and costs.
Example of total costs – Wealth Accelerator Core
This table illustrates the combined effect of the fees and costs for a range of investment options using Wealth Accelerator Core over a 1-year period, based on the same assumptions as the ‘Example of annual fees and costs – Wealth Accelerator Core’ set out above.
| EXAMPLE – A range of investment options using Wealth Accelerator Core | Balance of $50,000 with a contribution of $5,000 during year | |
| Cost of Wealth Accelerator Core | $232.40 [45] | |
| PLUS Management fees and costs for a range of investment options |
Managed fund fees 0.75% p.a.[46] | And, for the $50,000 you have invested in this range of investment options using Wealth Accelerator Core you will be charged $371.25 each year[47] |
|
PLUS Performance fees for a range of investment options |
Managed fund performance fee: 0.02% p.a.46 | And, you will be charged or have deducted from your investment $9.90 in performance fees each year |
|
PLUS Transaction costs for a range of investment options |
Managed fund transaction costs: 0.05% p.a.46 | And, you will be charged or have deducted from your investment $24.75 in transaction costs |
| EQUALS Total cost of investing in a range of investment options |
$638.30*[48] | |
*Note: Additional fees and costs may apply. This example is illustrative only and assumes you have chosen Wealth Accelerator Core and is based on an investment of $50,000 in the following investment options: minimum cash requirement ($500) and Russell Investments GSS Active 70/30 Fund ($49,500). It also assumes that there is a constant account balance throughout the year, no reallocation between investment options during the year, and the $5,000 contribution is made at the end of the year. Fees and costs may vary for your actual investment.
Example of annual fees and costs - Wealth Accelerator Plus (excluding fees and costs of the investment options)
This table gives an example of how the ongoing annual fees and costs for Wealth Accelerator Plus can affect your investment over a 1-year period. You should use this table to compare Wealth Accelerator Plus with other investor directed portfolio services.
| EXAMPLE – Wealth Accelerator Plus | Balance of $50,000 with a contribution of $5,000 during year [49] | |
| Contribution fees | Nil | For every additional $5,000 you put in, you will be charged $0 |
| PLUS Management fees and costs |
$550 Administration fee - account fee + 1.48% p.a. interest retained on the cash account[50] + Administration fee - international securities fee 0.15% p.a.[51] |
And, for the $50,000 you have in Wealth Accelerator Plus you will be charged or have deducted from your investment $575.96 each year |
|
PLUS Performance fees |
Nil | And, you will be charged or have deducted from your investment $0 in performance fees each year |
|
PLUS Transaction costs[52] |
Nil | And, you will be charged or have deducted from your investment $0 in transaction costs |
| EQUALS Cost of Wealth Accelerator Plus |
$575.96*[53] | |
*Note: Additional fees apply. This example is illustrative only and assumes that you have chosen Wealth Accelerator Plus. Fees and costs may vary for your actual investment. The above example only shows the fees and costs that relate to accessing investments using Wealth Accelerator Plus and does not include the fees and costs of the investment options, such as management fees and costs and buy-sell spreads set out in the relevant managed fund or applicable Managed Account PDS or trading costs or international securities costs. Additional costs are charged by the issuers of those products that you decide to invest in. Refer to the following example that illustrates the combined effect of the fees and costs.
Example of total costs - Wealth Accelerator Plus
This table illustrates the combined effect of the fees and costs for an investment in a range of investment options using Wealth Accelerator Plus over a 1-year period, based on the same assumptions as the ‘Example of annual fees and costs – Wealth Accelerator Plus’ set out above.
| EXAMPLE – A range of investment options using Wealth Accelerator Plus | Balance of $50,000 with a contribution of $5,000 during year | |
| Cost of Wealth Accelerator Plus | $575.96 [54] | |
| PLUS Management fees and costs for a range of investment options |
Managed fund fees 0.75% p.a.[55]
|
And, for the $50,000 you have invested in this range of investment options using Wealth Accelerator Plus you will be charged $92.81 each year [56] |
|
PLUS Performance fees for a range of investment options |
Managed fund performance fee: 0.02% p.a.55 | And, you will be charged or have deducted from your investment $2.48 in performance fees each year |
|
PLUS Transaction costs for a range of investment options |
Managed fund transaction costs: 0.05% p.a.55 | And, you will be charged or have deducted from your investment $6.19 in transaction costs |
| EQUALS Total cost of investing in a range of investment options |
$677.44* [57] | |
*Note: Additional fees and costs may apply. This example is illustrative only and assumes you have chosen Wealth Accelerator Plus and is based on an investment of $50,000 in the following investment options: minimum cash requirement ($500), Term deposits ($12,375), Russell Investments GSS Active 70/30 Fund ($12,375), Australian listed securities ($12,375) and international securities ($12,375). It also assumes that there is a constant account balance throughout the year, no reallocation between investment options during the year, no trading of securities during the year, and the $5,000 contribution is made at the end of the year. Fees and costs may vary for your actual investment.
Cost of product for 1 year
The cost of product gives a summary calculation about how ongoing annual fees and costs can affect your investment over a 1-year period for all product options. It is calculated in the manner shown in the Example of annual fees and costs.
The cost of product assumes a balance of $50,000 at the beginning of the year with a contribution of $5,000 during the year. (Additional fees such as an establishment fee or an exit fee may apply: refer to the Fees and costs summary for the relevant option.)
You should use this figure to help compare this product with other investor directed portfolio services.
| Wealth Accelerator Core | Cost of product $232.40 |
| Wealth Accelerator Plus | Cost of product $575.96 |
The above cost of product information only shows the fees and costs that relate to accessing investments using the Wrap Service and not the fees and costs of the investment options, such as management fees and costs set out in the relevant managed fund or applicable Managed Account PDS. Additional costs are charged by the issuers of those products that you decide to invest in and for any non-custodial assets administered by us.
Additional explanation of fees and costs
It is important that you understand the fees and costs of any investment option you choose, and that the total fees and costs you incur include the fees and costs of Wealth Accelerator, the fees and costs of any investment options you choose to make using Wealth Accelerator, and any Service fees and incidental fees and costs incurred on your behalf.
The fees and costs of any managed fund, managed model, term deposit and other unlisted investments you choose are generally set out in the PDS or other disclosure document for that investment. This is also the case for some Australian listed securities such as instalment warrants. We provide copies of the PDS or other disclosure document for an investment option in the Wrap Service, free of charge, on request.
Information about tax
All the fees and costs described in this Wealth Accelerator Guide are inclusive of any Goods and Services Tax (‘GST’) at the current rate charged under the A New Tax System (Goods and Services Tax) Act 1999 and are net of any input tax credits that we may be entitled to receive (unless otherwise stated). If, at any time, in the future the Government changes the rate at which GST or input tax credits are applied or the method of determining GST or input tax credits, the fees and costs deducted from your account may change.
Further information about taxation is included in this Wealth Accelerator Guide under the heading ‘Tax information’ and in Portfolio Service Guide 1a.
Negotiation of fees
We may, at our discretion, negotiate the amount of the fees where indicated in the above ‘Fees and costs summary’ tables on pages 24 - 31. You should contact us for further information regarding this.
Your Nominated Financial Adviser (if you have one) may negotiate the fees. By using a financial adviser, you provide us with certain efficiencies which may be reflected in the negotiated fees. If you change or remove your Nominated Financial Adviser, you may lose access to those negotiated fees and the fees set out in this Wealth Accelerator Guide may subsequently apply to your account. Your financial adviser can provide you with more information about any negotiated fee arrangements that they have agreed with us.
Changes to fees and costs
Until investors are notified otherwise, our fees and costs will remain as set out in this Wealth Accelerator Guide. We may change the fees we charge without your consent, but we will give at least 30 days’ notice to you of any proposed increase in fees for Wealth Accelerator. We may, at our discretion, either waive or defer payment of any fees or costs payable to us in whole or in part.
Management fees and costs
Administration fee – account fee
An account fee applies based on a percentage of your account balance plus a fixed amount. The account fee is subject to a minimum daily amount and is calculated as set out in the above ‘Fees and costs summary’ tables on pages 24 - 31.
For example:
- If you have a balance of $250,000 in Wealth Accelerator Core, the account fee is 0.15% p.a. of $250,000, plus the fixed amount.
- If you have a balance of $500,000 in Wealth Accelerator Plus, the account fee is 0.35% p.a. of the first $250,000 and 0.25% p.a. of the second $250,000, plus the fixed amount. The account balance includes custodial and non-custodial assets.
Interest retained on the cash account
The funds held in your cash account earn monthly interest at a variable interest rate which is currently no less than 0.80% p.a. below the Official Cash Rate (averaged over the month).[58] If you hold more than $250,000 in your cash account then the rate may be lower on part or all of the amount over $250,000.
All investors' cash account balances are currently pooled in one or more interest-bearing accounts with an Australian bank (‘pooled cash account’). Each month we retain part or all of the interest earned on the pooled cash account. We set the amount of interest we retain so that the rate of interest credited to each investor’s holding in the pooled cash account is equal to the current declared interest rates available on our website.
The amount we retain is deducted from the interest earned on the pooled cash account before interest is allocated to investors. This amount is not deducted from your account.
Family fee rebate
The family fee rebate applies to Wealth Accelerator Plus accounts. Wealth Accelerator Core accounts are not eligible for family fee rebates. Family members can link their accounts via a family group and receive a rebate which represents a reduction of administration fees across the linked accounts. Family groups can have a maximum of six linked accounts across Wealth Accelerator Plus and Super Accelerator Plus[59] and can include the following:
- members of the ‘same immediate family’ (i.e. spouse, de facto/domestic partner, children, parents, siblings, grandchildren, grandparents); and
- companies, family trusts and self managed superannuation funds, provided the directors/directors of the trustee or the trustees and/or beneficiaries are members of the same immediate family.
We have discretion as to which accounts are included in any family group.
Accounts within Wealth Accelerator Plus and/or Super Accelerator Plus can only be linked where the account fee is the same scale or a compatible scale, as determined by us.
To arrange for accounts to be linked, complete a ‘Family group request’ form, which is available on our website, or by contacting us or from your Nominated Financial Adviser.
Administration fee – international securities fee
The international securities fee applies to Wealth Accelerator Plus accounts. An international securities fee applies based on a percentage of the value of any international securities held for you in the Wrap Service. This fee is calculated as set out in the above ‘Fees and costs summary’ table on pages 27 - 31.
For example, if $2 million worth of international securities are held for you in the Wrap Service, the international securities fee is 0.150% of the first $1 million and 0.125% of the second $1 million.
Significant account fee
The significant account fee is an additional administration fee applied to very large holdings in Wealth Accelerator to cover additional risks and costs we incur in relation to these types of accounts. The significant account fee of 0.055% p.a. is applied to Wealth Accelerator accounts (or groups of accounts) with an aggregate balance of $30 million or more. This fee is calculated on the total account balance. The account balance includes custodial and non-custodial assets. The significant account fee is calculated daily and is deducted monthly in arrears from your cash account, or on full withdrawal from your account.
Where you have multiple accounts with a combined account balance of over $30 million, the significant account fee applies to each of those accounts. This means the significant account fee may apply to individual accounts with less than $30 million where we determine that the aggregate holding of the beneficial owners or entity exceeds this amount. We have discretion to determine which accounts (or group of accounts) are included in establishing the significant account fee. We generally look through to the controlling entity and aggregate balances held by the same (or related) individuals, companies, family trusts, self-managed superannuation funds, or the directors of these entities. Accounts that are linked in a family group for the purposes of family fee rebates are also grouped for establishing whether the significant account fee applies and (where applicable) the fee will apply to each account within that family group. Once applied to an account or group of accounts, the significant account fee will continue to apply regardless of fluctuations in account balance, until we agree in writing to remove it.
We will notify you if the significant account fee applies to your accounts before deducting the fee.
Underlying investment fees and costs
You may also incur costs in the investment options you choose using Wealth Accelerator. These investment costs are in addition to the management fees and costs charged by us in relation to Wealth Accelerator.
Term deposits & fixed term annuities
There are generally no investment fees for investing in term deposits or fixed term annuities. The interest rate or income you receive is net of all applicable financial institution costs, and fees are not deducted from your investment. We may agree to facilitate an early withdrawal from a term deposit or fixed term annuity provider. Early withdrawals may not be allowed and are subject to withdrawal restrictions, notice periods and interest, income or principal reductions as described in the terms and conditions outlined in the product disclosure statement or other disclosure document for that term deposit or fixed term annuity.
Fees and costs for managed funds
Fees and costs for each of the managed funds accessible through the Wrap Service are included in the PDS or other disclosure document for the relevant managed fund which is available in the Investment Menu on our website or by contacting us.
These fees and costs may include fees charged or retained by the issuer of the managed fund and indirect costs incurred in the managed funds. They are reflected in the unit price of the relevant managed fund and are an additional cost to you.
Some managed funds may charge a performance fee if a particular return is achieved. The relevant PDS should set out information on the performance fee (if any) charged for a managed fund. These are an additional cost to you.
When purchasing and redeeming interests in managed funds, the responsible entity of the relevant fund is usually entitled to charge an amount to the investor for the cost of purchasing or selling the managed fund’s assets. These amounts typically include things like brokerage and stamp duty and are usually reflected in the difference between the application price and withdrawal price of an interest in the managed fund. This is called the ‘buy-sell spread’. Buy-sell spreads are generally used to fairly distribute the costs of buying and selling assets between those joining (in the case of buy costs), those leaving (in the case of sell costs) and the other investors in the managed fund. These buy-sell spreads are an additional cost incurred by you at the time of the transaction. For example, if the application price for a managed fund is $1.00 and the withdrawal price is $0.996, the buy-sell spread you would incur if you invested $50,000 in units in that managed fund and immediately redeemed those units would be $200, or 0.40% of the total of your investment. The buy-sell spread for any managed fund should be described in the PDS or other disclosure document for that managed fund.
Fees and costs for managed models
Fees and costs for the managed models accessible through the Wrap Service are included in the applicable Managed Account PDS which is available in the Investment Menu on our website or by contacting us.
These fees and costs, which are an additional cost to you, include:
- fees charged or retained by the responsible entity of the Managed Account which are deducted from your holdings in the Managed Account; and
- indirect costs incurred in managed funds held within the Managed Account which are reflected in the unit price of the relevant managed fund.
Some managed models may charge a performance fee if a particular return is achieved. The applicable Managed Account PDS should set out information on the performance fee (if any) charged for a managed model. These are an additional cost to you.
International securities fees and costs
These fees apply only if you invest in international securities accessible through the Wrap Service, using Wealth Accelerator Plus.
In addition to the fees described in the ‘Fees and costs summary’ table on pages 27 - 31, brokerage costs incurred for international securities trades are deducted on settlement of the trade. The amount of brokerage varies depending on which broker you choose to use. If you instruct us to trade international securities through our nominated broker, the brokerage fee is described below in the ‘Transaction fees and costs’ table. If you instruct us to trade through a broker other than our nominated broker, brokerage rates are provided to you when you complete your instruction to trade. Trades on certain overseas exchanges may be subject to additional trading costs, such as stamp duties, taxes and commissions. Any such costs are deducted on settlement of international securities trades in those markets. Details of trading costs are available on our website.
If a trade does not settle or there is a delay in settling a trade, any costs that we incur, associated with the failed or delayed trade, are deducted from your cash account.
Fees and costs for other investment options
For any fees and costs for other investment options, see the disclosure document for the relevant investment. These are an additional cost to you.
Fees and costs for non-custodial assets
Where you acquire non-custodial assets, you should consider the fees and costs associated with those assets. If you acquire the asset through a broker, intermediary or other trading platform you may incur trading costs. Information about the fees and costs should be provided to you by the issuer of the investment and/or any intermediary you use.
Those fees and costs are in addition to the Non-custodial asset fee and Non-custodial asset application fee charged by us (as described in the ‘Service fees’ table on pages 45 - 47), the management fees and costs charged by us in relation to the account balance which includes any non-custodial assets we administer on your behalf (as described in the ‘Fees and costs summary’ table on pages 27 - 31) and any applicable transaction costs charged by us as described below in the ‘Transaction fees and costs’ table.
Transaction fees and costs[60]
| Type of transaction cost | ||
|---|---|---|
|
Australian listed securities – brokerage fee This fee applies only to Wealth Accelerator Plus. |
A fee for brokerage services equal to 0.125% of trade value (with a minimum of $18.50 per trade) is charged to your account when you instruct us to purchase or sell Australian listed securities through our nominated broker. This fee is deducted from your cash account at the time of settlement of the trade and is paid to us. |
|
|
Australian listed securities – share settlement fee This fee applies only to Wealth Accelerator Plus. |
Subject to our approval which will not be unreasonably withheld, trades for Australian listed securities may be conducted with brokers other than our nominated broker. Trades are settled using funds in your cash account. In this case, we may charge a share settlement fee of up to $20 per trade to settle each trade.[61] This fee is deducted from your cash account at the time of settlement of the trade and is paid to us. If a trade does not settle, the dishonour fee incurred together with any costs associated with the failed trade incurred by us are deducted from your cash account. | |
|
International securities – brokerage fee This fee applies only to Wealth Accelerator Plus. |
A fee for brokerage services equal to 0.20% of trade value (with a minimum of $38.50 per trade) is charged to your account when you instruct us to purchase or sell international securities through our nominated broker. This fee is deducted from your cash account at the time of settlement of the trade and is paid to us. This is in addition to trading costs described above under ‘International securities fees and costs‘ on page 43. |
|
|
International securities – share settlement fee This fee applies only to Wealth Accelerator Plus. |
Subject to our approval which will not be unreasonably withheld, trades for international securities may be conducted with brokers other than our nominated broker. Trades are settled using funds in your cash account. In this case, we may charge a share settlement fee of up to $25 per trade to settle each trade.[62] This fee is deducted from your cash account at the time of settlement of the trade and is paid to us. If a trade does not settle, the dishonour fee incurred is deducted from your cash account together with any costs associated with the failed trade incurred by us. | |
|
Foreign currency conversion fee This fee applies only to Wealth Accelerator Plus. |
Where it is necessary to convert currency in relation to trading or holding international securities or other investments denominated in a foreign currency, a margin of up to 0.45% may be applied to the spot rate set by one of our approved foreign exchange providers. We retain this margin, less any margin we pay to third parties to complete this conversion. | |
| Other investments fee | A $20 fee is charged to your account when you instruct us to purchase or sell other investments (that do not fall within the above investment categories). This fee is deducted from your cash account at the time of the transaction and is paid to us.[63] | |
Service fees
Additional service fees and special request fees
| Type of additional service fee or special request fee | ||
|---|---|---|
| Negative cash account fee | If your cash account goes into a negative balance for any reason, a fee is charged for the period that your cash account has a negative balance. The fee is an amount equal to the interest rate applicable to the positive cash balances in your cash account. For example, if during a month the interest rate on the cash account is 0.25% p.a., we set the negative cash account fee so that an amount is debited from your cash account at the rate of 0.25% p.a. of the negative balance. The fee is calculated on the daily negative balance for the period your cash account has a negative balance and charged to your account monthly. The fee is paid into the pooled cash account; it is not retained by us. | |
|
Transfer out fee
|
This is the fee for transferring managed funds, Australian listed securities or other investment options that are held in the Wrap Service to you or to another entity, where the transfer is made at your request. The transfer out fee is $50.00 per managed fund, Australian listed security or other investment. This transfer out fee does not apply to non-custodial assets. This fee is deducted from your cash account at the time of the transfer and is paid to us.[64] | |
| Offline transaction fee | Many transactions can be performed online. If you choose not to use the online capability when you transact, a $20 offline transaction fee applies, except to those transactions for which we do not have online capability. This fee is deducted from your cash account at the time of the transaction. We may waive this fee at our discretion. | |
|
Initial public offering (‘IPO’) fee This fee applies only to Wealth Accelerator Plus. |
If you wish to participate in an IPO for an entity that is to be listed on an Australian exchange and invest using Wealth Accelerator, then we may also charge you $20 for each IPO in which you decide to invest. If you wish to participate in an IPO for an entity that is to be listed on an overseas exchange and which we have approved, we may charge you $50 for each IPO in which you decide to invest. The IPO fee is deducted from your cash account at the time the application for the IPO is made and paid to us. | |
|
Warrant tax calculation fee This fee applies only to Wealth Accelerator Plus. |
Instalment warrants, and other like assets, require specific taxation calculations to be prepared and processed to your account each year. A fee of $40 for each holding of each warrant held during the financial year is charged to your account when we process the accounting entries in the following financial year. You may have instructed us to purchase holdings in the same warrant at different times which means there will have been more than one holding and you will therefore incur more than one $40 fee for that warrant. If a warrant was held during the year but was sold before the end of the year, you are still charged fees as calculations will still be required. | |
| LifeWRAP administration fee | If you select the LifeWRAP facility, we charge an administration fee of $5 per month for each LifeWRAP policy held, which is deducted monthly in arrears from your cash account. This fee is in addition to the insurance premium that is deducted from your account. See the PDS for the relevant LifeWRAP insurance product for details about the relevant policy and premiums. | |
| Real Time Gross Settlement (‘RTGS’) fee | You may ask us to pay withdrawal proceeds to one of your nominated bank accounts on the same day using RTGS. A $50 fee is charged to your account when you instruct us to pay withdrawal proceeds using RTGS. The fee is deducted from your cash account at the time of payment and is paid to us. | |
| International payments fee | A $50 fee is charged to your account when you instruct us to pay withdrawal proceeds (including proceeds in relation to non-custodial assets) to an international bank account. The fee is deducted from your cash account at the time of payment and is paid to us. | |
| Class action participation fee | If and when you elect to participate in a class action in relation to an investment held in your account (including an investment held indirectly through a Managed Account), a $50 fee is charged to your account. The fee is deducted from your cash account at the time the election to participate is made and is paid to us.[65] | |
| Class action payment fee | Where you elect to participate in a class action and the class action is successful, resulting in a payment to your account, a fee of up to $30 per class action is charged to your account. The fee is deducted from your cash account at the time the payment is made to your account and the fee is paid to us. If you no longer have a Wealth Accelerator account, we will attempt to make the payment to you subject to a fee of up to $100 per class action which will be deducted from the amount payable to you.65 | |
| Cost base reconstruction fee | If we are required to reconstruct a CGT parcel history for an in-specie transfer into the Wrap Service a $20 fee per parcel will be deducted from your cash account at the time of reconstruction and paid to us. | |
|
Non-custodial asset fee This fee applies only to Wealth Accelerator Plus. |
Any non-custodial assets administered for you by us will incur a fee per asset. This fee is calculated daily, at the rate of $220 p.a. per asset (with a minimum of $440 per account p.a.). This fee is deducted monthly in arrears from your cash account. | |
|
Non-custodial asset application fee This fee applies only to Wealth Accelerator Plus. |
If you instruct us to complete an application form for an Australian domiciled non-custodial asset, a fee of $220 per application will apply. If you instruct us to complete an application form for an internationally domiciled non-custodial asset, a fee of $300 per application will apply. These fees are deducted from your cash account at the time we apply for the asset, even if the product issuer rejects the application. |
|
| Ad-hoc service fee | We may agree to perform ad-hoc services for you upon request. If we do, a fee may be deducted from your cash account as agreed between you and us in advance. | |
Advice fees
Advice fees are agreed between you and your Nominated Financial Adviser, for services provided by your Nominated Financial Adviser or their AFS Licensee in relation to your interest in Wealth Accelerator. When you sign the ‘Application’ form and nominate advice fees, you are instructing us to pay the advice fees as set out in the section of the ‘Application’ form headed ‘Nominate your Financial Adviser and advice fees’ to your Nominated Financial Adviser’s AFS Licensee and you are authorising and instructing us to deduct those fees from your cash account. Where applicable, you are authorising for some or all of these amounts to be paid by your Nominated Financial Adviser’s AFS Licensee to your Nominated Financial Adviser.
Where you agree to pay your Nominated Financial Adviser a percentage-based fee we will not apply this fee to any part of your investment that has been acquired using money that you have borrowed, if we have been told that this is the case. If you have borrowed funds to invest using Wealth Accelerator, you should tell us on your application or ‘Additional deposit’ form and you warrant to us that you have notified us of any borrowed amount. If you are a Wholesale Client and part of your investment has been acquired using money that you have borrowed, a percentage-based advice fee can be charged on your total account balance at the request of you or your Nominated Financial Adviser.
You may instruct us to terminate any or all of the advice fees at any time. If you do not appoint a financial adviser as your Nominated Financial Adviser, no advice fees are charged.
We can pay advice fees in a range of ways including those in the table below.
| Type of advice fee | If you have nominated a financial adviser, you may agree with your Nominated Financial Adviser to pay advice fees as follows |
|---|---|
| Upfront advice fee |
An upfront advice fee of:
|
| Ongoing advice fee |
An ongoing advice fee for services that your Nominated Financial Adviser provides in relation to the monitoring and ongoing reporting on your account and advice about your account. You may agree to pay an ongoing advice fee as follows:
and/or
Percentage based fees are calculated daily and are deducted monthly in arrears from your cash account. For a fixed dollar amount fee, you must specify the month in which the fee is to commence. The full amount of the fee is deducted from your cash account in that month and, thereafter, at the end of each month, quarter, half year or year, as agreed by you and your Nominated Financial Adviser.[67] |
| Fixed term advice fee |
A fixed term advice fee for services that your Nominated Financial Adviser provides in relation to advice about your account. The term cannot be more than 12 months. You may agree to pay an ongoing advice fee as follows:
and/or
Percentage based fees are calculated daily and are deducted monthly in arrears from your cash account. For a fixed dollar amount fee, the total amount is divided by the number of days in the fixed term to determine a daily fee rate. The amount deducted per period is based on a pro-rata calculation of the daily fee rate multiplied by the number of days in the period. This fee is deducted from your cash account at the end of each month, quarter, half year or year thereafter, as agreed by you and your Nominated Financial Adviser.[68] |
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Advice fee – Australian listed securities This fee applies only to Wealth Accelerator Plus. |
An advice fee in respect of advice in relation to transactions in Australian listed securities placed through our nominated broker. The available fee options are:
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| Once only advice fee | From time to time you may agree with your Nominated Financial Adviser to pay a single, once-only fee for specific advice services provided by your Nominated Financial Adviser in relation to your interest in Wealth Accelerator. If so, we deduct the fee from your cash account and pay the specified amount to your Nominated Financial Adviser’s AFS Licensee. |
We may agree to provide for the payment of advice fees in other circumstances or calculated in other ways. The type and amount of such advice fees must be previously authorised by you and agreed with your Nominated Financial Adviser. You may instruct us to pay the advice fees to more than one adviser or AFS Licensee.
Portfolio management fees
We have arrangements with certain AFS Licensees to facilitate the payment of portfolio management fees. Portfolio management fees are agreed between you and an AFS Licensee who provides you with investment management services. Investment management services are provided under an arrangement between you and the AFS Licensee in relation to your Wealth Accelerator account. Investment management services involve the AFS Licensee providing us with instructions to buy and sell investments within your Wealth Accelerator account on your behalf, based on an investment strategy that you have agreed with the AFS Licensee. This arrangement may be in the form of a Managed Discretionary Account service provided by the AFS Licensee (see the section headed ‘Managed Discretionary Account services’ in Portfolio Service Guide 1a).
You can provide us with an instruction authorising and instructing us to deduct portfolio management fees from your cash account and pay them to the AFS Licensee. We only accept this instruction if we have an arrangement in place with the AFS Licensee to facilitate the payment of portfolio management fees.
You may agree to pay portfolio management fees on an ongoing basis as follows:
- a fixed percentage of the gross daily value of your account (excluding any non-custodial assets); and/or
- a fixed dollar amount.
You may instruct us to terminate any or all of the portfolio management fees at any time.
The portfolio management fees are not paid in relation to any personal advice provided to you by the AFS Licensee.
Incidental fees and costs
All government and other fees and costs (including bank fees, in-specie transfer costs, stamp duty, cheque dishonours, fail fees and penalty interest) incurred in respect of your account may be charged to your cash account at our discretion.
In some circumstances we may hold foreign currency on your behalf, including as a result of trading or holding international securities. Where we hold money in a foreign currency account on your behalf and we receive interest on that account, any interest received is retained by us.
If we effect a transaction without buying or selling the relevant asset (for example, by netting transactions of different investors) we are entitled to retain the amount of any fee that would otherwise have been payable. You are charged the relevant fee(s) for the transaction as if the transaction had taken place without netting. See the ‘Underlying investment fees and costs’ section on page 42 and ‘Transaction fees and costs’ section on page 44 for details of these fees.
Other payments and benefits
If you invest using Wealth Accelerator, we receive the fees that you pay in relation to the services we provide to you in connection with Wealth Accelerator. These fees are described starting on page 24.
Managed funds issued by us
We, acting in a separate capacity, are the responsible entity of certain managed funds, including the GSS funds, which are available to invest in using the Wrap Service. We receive fees for acting as the responsible entity of these funds. These fees are set out in the PDSs of the managed funds.
Managed Accounts
We, acting in a separate capacity, are the responsible entity of the Netwealth Managed Account Service which is available to invest in using the Wrap Service. We receive fees for acting as the responsible entity of the Netwealth Managed Account Service. These fees are set out in the Netwealth Managed Account Service PDS.
We may act as administrator and custodian for other managed accounts available to invest in using the Wrap Service. We receive fees from the providers of these managed accounts for acting as administrator and custodian.
Payments from investment providers
We receive fees from providers of certain investment options that are available using Wealth Accelerator and/or in the Netwealth Superannuation Master Fund. These amounts are for the inclusion of products on the menus and for administrative activities we undertake for the product issuers or managers. The amounts we currently receive are: fees of up to $1,100 p.a. per rebate agreement from certain fund managers for rebate administration services, ongoing fees of up $3,300 p.a. per investment option for funds under management flow reporting, ongoing fees of up to $11,000 p.a. per investment option from certain fund managers, ongoing fees of up to $66,000 p.a. from providers of term deposits and fixed term annuities and ongoing fees of up to $15,400 p.a. per model from the managers of managed models available in the Netwealth Managed Account Service. These amounts are paid to us from the provider’s own resources and are not an additional cost to you. These fees are retained by us.
In addition, fund managers who participate in the Investor Rewards Program pay us at least 0.10% p.a. of amounts invested with them. These amounts are passed on to investors and are not retained by us.
Your adviser may agree with certain fund managers that the fund manager will pay a rebate of part of their management fees and costs to us on your behalf, based on the amount invested with that fund manager. Any such amounts we receive in relation to your investments will be passed on to you and are not retained by us.
LifeWRAP Policy fee
We may receive an administration fee from an insurer who provides life insurance under the LifeWRAP facility to investors in Wealth Accelerator. Currently, this fee may be up to $60 for each in-force individual policy per annum. This fee is paid by the insurer for us providing services to the insurer under an administration agreement in relation to the individual policies offered as part of Wealth Accelerator. This is paid by the insurer and is not an additional charge to you. This fee is retained by us.
Initial Public Offerings
We do not charge clients any brokerage in connection with subscriptions for shares in IPOs (other than the initial public offering fee described in the ‘Additional service fees and special request fees’ table on pages 45 – 47). We may, however, receive a fee from the issuer of the IPO for handling the application as disclosed in the relevant prospectus and/or offer communication for the IPO. This fee is paid by the issuer of the IPO and is not an additional charge to you. This fee is retained by us.
Tax information
Information about tax is available in Portfolio Service Guide 1a. You should obtain up to date professional advice about how tax applies to your circumstances before making an investment.
Annual tax statement
To help you complete your tax return each year, we give you an annual tax statement. Unless you specifically request otherwise, your tax statement is prepared on the basis that you are investing:
- as an Australian resident individual;
- as an Australian trust;
- as an Australian resident company; or
- as an Australian superannuation fund.
Do I need to give you my Tax File Number (‘TFN’) or Australian Business Number (‘ABN’)?
Under Part VA of the Income Tax Assessment Act 1936, we are authorised to collect your TFN which will only be used for lawful purposes and which may include making investments on your behalf and reporting to the Australian Taxation Office.
If you are making the investment in the course of a business or enterprise carried on by you, you may quote your ABN instead of a TFN. It is not an offence not to quote your TFN or ABN. However, failure by you to quote an ABN, TFN or claim an exemption, may cause us to withhold tax at the top marginal tax rate plus Medicare levy (and any other applicable levies), before passing on interest, distributions or other income to you.
The lawful purposes for which your TFN can be used and the consequences of not quoting your TFN may change in the future as a result of legislative changes.
If you wish to quote your TFN or ABN, complete the relevant section of the ‘Application’ form, or alternatively you can quote your TFN or ABN on the ‘Tax File Number notification’ form available from your Nominated Financial Adviser, our website or directly from us.
By supplying your TFN or ABN you authorise us to apply it to all investments made using Wealth Accelerator on your behalf.
Further information
Using a financial adviser
For help about investing generally, you may wish to speak to a registered financial adviser.
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Important warning about appointment of Adviser Representatives: As your Adviser Representative can access your online account and they will have authority to act on your behalf on matters concerning your account and investments, it is essential that you have complete confidence in your Nominated Financial Adviser handling your investments. If you have any doubts about this, you should complete the opt-out section in the ‘Application’ form when you apply. You can also contact us at any time after you apply. |
You may appoint a financial adviser as your Nominated Financial Adviser and also as your Adviser Representative.
| Nominated Financial Adviser |
Your Nominated Financial Adviser is able to access information online about you and your account and receives copies of communications sent to you by us. You may agree to pay advice fees for services provided by your Nominated Financial Adviser. |
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Adviser Representative
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Your Nominated Financial Adviser is automatically appointed as your Adviser Representative (unless you instruct us otherwise). Your Adviser Representative is able to act on your behalf on matters relating to your Wealth Accelerator account, including providing us with instructions about your account and undertaking online transactions on your behalf. |
You do not need a financial adviser to open or maintain a Wealth Accelerator account. If you do nominate a financial adviser when you open an account, you may cancel or change that nomination at any time by contacting us. If you choose not to nominate a financial adviser, you will not be able to have an Adviser Representative appointed, and certain investment options may not be available to you.[69] However, you will continue to have access to all of the other features and benefits of Wealth Accelerator. Our policy addressing the consequences for investors who do not use a financial adviser is on the ‘Forms and documents’ section of our website or available from us free of charge on request.
A LifeWRAP insurance policy is only available through an adviser who is authorised by the insurance company who provides the policy.
Your Nominated Financial Adviser may negotiate with us the administration fees you pay (as described on page 47). If you change or remove your Nominated Financial Adviser, you may lose access to these negotiated fees.
If you have more than one Netwealth account, including in the Netwealth Superannuation Master Fund or the Wrap Service, under the same username, the Adviser Representative is the same on all the accounts under that username. Any instruction that you provide regarding the appointment of your Adviser Representative in relation to any of these accounts applies to all of the accounts under that username. If you have more than one Netwealth account held under different usernames, any instruction you provide regarding the appointment of an Adviser Representative applies only to the accounts held under the username specified in the instruction.
How do direct and indirect investments differ?
Wrap Service investments
All assets held through the Wrap Service are indirect investments as they are held in custody by us, on trust for you (i.e. on your behalf). You should be aware that the rights of investors, who invest indirectly using the Wrap Service, in any term deposits, fixed term annuities, managed funds, Australian listed securities, international securities or other approved investments, differ from the rights of investors who invest directly in those investments.
When investing using the Wrap Service, you are not acquiring investments directly. Investments in the Wrap Service are held by us on your behalf. As a result, you are not the legal owner but you are the beneficial owner of investments. Whilst you do not have the rights of the legal owner, we have those rights and we hold them as custodian for your benefit.
In addition, as you do not hold investments directly, the following differences from direct investments apply to indirect investments held in the Wrap Service:
- where you hold managed funds in the Wrap Service you will not receive communications directly from the fund manager or operator of the fund;[70]
- where you hold Australian listed securities or international securities in the Wrap Service, you will not receive communications from the share registry or underlying company in relation to the listed securities;70
- where you hold fixed term annuities in the Wrap Service, you will not receive annuity reports and other information directly from the provider of the annuity. You will not be the policyholder of the annuity and any guarantees given by the provider regarding income payments and return of capital are contractually given to us rather than to you;
- there can be delays in transacting that may not apply if you were investing directly;
- when you invest in managed funds, fixed term annuities or other investments in the Wrap Service, any rights which the disclosure document or PDS for the managed fund or other investment describes as being exercisable by the investor are exercisable by us. As we are not a retail investor, the 14-day cooling-off period that often applies to managed fund investments will generally not apply when investments are made using the Wrap Service;[71]
- investments made using the Wrap Service may be held directly in our name as a single holding or held by our appointed sub-custodian. As a result, you will not be eligible for certain benefits that can arise from a direct holding (e.g. shareholder discounts) and there may be limitations on your ability to participate in corporate actions;
- where you invest in managed models using a Managed Account in the Wrap Service, decisions about corporate actions applying to assets held in a Managed Account are made by the responsible entity of the Managed Account at their discretion;
- where you invest in listed securities and managed funds in the Wrap Service, you are not able to participate in dividend or income reinvestment plans offered by the issuer of these products;
- Wealth Accelerator may provide access to certain managed funds and managed models in the Wrap Service that are not available to you as direct investments. This includes the GSS Funds. In addition, certain investment options may only be available if you have a Nominated Financial Adviser who has arrangements with the product issuer to make the investment option available to their clients. These investment options may no longer be available to you if you withdraw from Wealth Accelerator. You may also be adversely affected if you change your Nominated Financial Adviser or cease to have a Nominated Financial Adviser because such investment options may no longer be available to you, you may be required to redeem or withdraw from those investments and/or assets held in a Managed Account may cease to be managed in line with the chosen managed models. The disclosure document for the relevant investment option explains any such restrictions and your Nominated Financial Adviser (if applicable) will provide further information in this regard;
- because you are not the legal holder when investments are made using the Wrap Service, you are not entitled to exercise rights to vote in relation to investments held in the Wrap Service, but in certain circumstances you can instruct us how to vote or appoint a person as a proxy or representative for the purposes of exercising voting rights;[72] and
- if the disclosure document for the underlying asset in the Wrap Service is defective before the issue of the underlying asset, the minimum subscription amount for the offer is not raised or if the disclosure document for the underlying asset states that the underlying assets are to be quoted on a financial market but no application for admission to quotation is made or the underlying assets are not admitted to quotation, you will not have the rights that may be available to direct investors in those circumstances to withdraw their application to acquire the asset, or return the assets to the issuer and be repaid.
Non-custodial assets
Where you choose Wealth Accelerator Plus and we administer non-custodial assets for you, generally you acquire the assets directly and you are the legal owner in your own right.
Where you hold non-custodial assets through Wealth Accelerator, we act for you under a LPOA and give instructions to the asset manager or issuer on your behalf. This means that:
- where you hold managed funds or other unlisted products as non-custodial assets, you generally will not receive communications directly from the fund manager or operator of the asset;[73]
- where you hold listed securities as non-custodial assets, you may not receive communications from the share registry or underlying company in relation to the listed securities;73 and
- the time taken to process any instructions may take longer than if you were administering the asset yourself. The timing of any instructions from you or your Nominated Financial Adviser will need to consider the need for that instruction to pass through Netwealth on its way to the asset manager or issuer.
If you hold a non-custodial asset using Wealth Accelerator and that asset is held in custody for you by an alternative external custodian, our administration of the asset is subject to the terms of your arrangement with that custodian. You should consider information provided to you by that custodian regarding the terms and conditions under which they hold the asset.
How are the voting rights attached to your investments exercised?
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Voting policy: A copy of our IDPS voting policy is available on our website or by contacting us to request a copy free of charge. |
Where investments in the Wrap Service are held on your behalf by us as custodian and we are the legal owner of the investments, all notices of meeting in relation to the investments are sent to us and the voting rights attached to the investments can only be exercised by us or by someone appointed by us. We have a voting policy that determines how the voting rights attached to your investments may be exercised. A copy of this policy is available free of charge on request by contacting us. Under the voting policy there are two ways in which voting rights can be exercised.
The first way is if we believe a matter being voted on will have a material financial impact on the value of an investment held for you. In these circumstances we notify you of the matter being voted on and how you may give us instructions on how to vote, usually by posting information on our website. Generally, we do not notify you of ‘business as usual’ matters such as re-election of directors at annual general meetings. We only notify you of matters where, in our opinion, it could be expected to have a material impact on the value of your investment. We vote on your behalf if you give us a valid instruction on how to vote.
The second way is if you direct us to appoint a person you nominate as proxy or representative for the purposes of exercising the voting rights in relation to particular resolutions or a particular meeting. While we have the discretion to not accept your direction, generally we intend to do so. Subject to us accepting the direction and subject to any restrictions we impose on the direction, you may nominate any person you wish to be the proxy or representative and you may direct them how to vote in relation to the particular resolutions. Where we accept your direction, we ensure you are given any information that is available to us in relation to the resolutions to be voted on. We may do this by providing the information to you or to your Nominated Financial Adviser. If we have posted the information on our website or reasonably believe that you or your Nominated Financial Adviser already have the information, it is not necessary for us to provide the information again. We will not accept a standing instruction from you to nominate a proxy or representative to exercise voting rights on future resolutions relating to the assets held in your account.
Where non-custodial assets are administered by us in Wealth Accelerator Plus, any notices of meeting in relation to the investments sent to us are made available to you through your online account. In these circumstances we notify you of the matter being voted on and how you may give us instructions on how to vote on your behalf. Alternatively, where the investments are held in your own name you may choose to lodge your vote directly with the relevant administrator.
We do not accept voting instructions in relation to assets held in a Managed Account. The responsible entity of the Managed Account determines how it will vote on Managed Account assets.
Communication about your account
How do we communicate with you?
Wealth Accelerator is an online product. Communications[74] are sent to you by:
- an SMS sent to your mobile phone number;
- an email sent to your email address; or
- notification to you by email or SMS that the communication is available for you to access in your online account or on our website.
To protect your privacy, you should ensure that the email address you provide to us belongs to you and is secure and confidential.
You agree that we may give you all notices, statements and documents, information and other communications in connection with your account by making them available online at a location notified and readily available to you. You agree that this may take the form of your online account.
Where we make information available in your online account, you agree that we may notify you of this fact and the location by email or SMS. You agree to check your emails and SMS messages regularly.
You can opt-out from receiving information electronically by contacting us on 1800 888 223 or through your online account.
Obtaining your authority via the Netwealth Mobile App or by SMS, email or verbal confirmation
We may notify you of, or seek authority for, certain transactions completed by you or your Adviser Representative via the Netwealth Mobile App or using either SMS, email or verbal confirmation. These transactions may include:
- withdrawals made using the Pay Anyone facility;
- payments made using bill payment facilities such as BPAY;
- payment to a once-off bank account;
- a change of nominated bank account initiated by your Adviser Representative;
- an update to your ongoing advice fee or inclusion of a once only advice fee initiated by your Adviser Representative; or
- any transaction where we want to ensure the authenticity of that request.
For certain transactions, you are required to provide your mobile phone number for use in relation to the transactions. It is important that the mobile phone number you provide to us is current and secure to ensure that you are notified of the transactions.
Annual statements
Once a year, we provide you with:
- an Annual Tax Statement to assist in completing your tax return, with details of income you have received, any realised capital gains and/or losses and any taxes, fees and charges debited from your cash account during the financial year; and
- an Annual Statement with details of all your transactions and investments as at the end of the financial year, along with the Annual Audit Report prepared by Wealth Accelerator’s auditors.
Transaction confirmations
When you transact on your account, you can access information about your transactions in your online account.
Communications about your investments
As the operator of the Wrap Service, we hold your investments through the Wrap Service as custodian and we receive information regarding your holdings of Australian listed securities, managed funds and other investments. In these instances, information about the investments you hold in Wealth Accelerator may be sent by the operator, manager or register of the investments to us. They do not send information to you.
Information we receive in relation to investments may include notices of rights issues, bonus issues, share purchase plans, takeovers or share buy backs. We may also receive notices from the person responsible for a managed fund about changes to the product including changes to the responsible entity, structure or investment strategy.
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Correspondence about investments: It is important that you and your Nominated Financial Adviser agree how communications about investments will be managed. You should discuss this with your Nominated Financial Adviser. |
We provide information to you or your Nominated Financial Adviser about notices we receive from investments where we believe they require a decision that may have a material financial effect on your investment. For example, where a notice involves an offer to participate in an issue at a potentially beneficial price and that offer is available to be taken up by investors through Wealth Accelerator, we provide details of that offer to you. We also provide other information on our website where we believe it is information of significant importance to investors.
Generally, we do not pass on other information we receive from your investments if we do not assess it as being material to investors. This may include, but is not limited to, information such as announcements, financial reports, results announcements and newsletters. You may request that we give to you a copy of communications that the issuer of the investment option is required by law to give to holders, including communications that holders of the investment may elect to receive. You may make such a request in relation to a particular communication. We provide the information as soon as practicable after the information is received or otherwise becomes available to us.
Some advisers have arrangements with their clients for the adviser to receive all communications about their clients’ investments. This is to reduce the amount of correspondence their clients receive and ensure that the adviser can help their clients determine and implement actions they need to take. We may, at our discretion, enter into an arrangement with your Nominated Financial Adviser for all communications about the investments held in your account to be directed to your Nominated Financial Adviser and not to you. In this instance, you appoint your Nominated Financial Adviser as your agent to receive all such communications on your behalf, and your Nominated Financial Adviser undertakes to ensure that you have agreed to the arrangement with them, that you are notified of any such communications and that they seek your instructions about any required actions.
For non-custodial assets we administer for you in Wealth Accelerator Plus, communications received by us pertaining to your holdings will be made available to you through your online account.
Anti-Money Laundering and CTF Legislation
The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (‘AML/CTF Act’) applies to the financial services we provide and requires us to:
- identify customers before providing a service or making a payment;
- report suspicious transactions; and
- adopt and maintain an AML/CTF program.
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More about AML/CTF laws: See the Attorney-General’s Department website: ag.gov.au or the AUSTRAC website: austrac.gov.au for more information. |
To comply with the AML/CTF Act, for each new Wealth Accelerator application the relevant identification forms are required to be completed and submitted together with the application. We may not be able to begin administering or acquiring assets until we receive all the required identification forms and, if the required forms are not received within a reasonable time, we may be required to return your funds to you. In addition, the AML/CTF Act may require us to:
- delay, block, freeze or refuse to process a transaction or provide a service to you; and
- not inform you of any delay or hold on your account.
For existing investors in Wealth Accelerator, we may require that you provide relevant identification forms and information to us on request.
Privacy
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Privacy policy: A copy of our FSG and Privacy Policy is available on our website or by contacting us to request a copy free of charge. |
We require personal information from you to provide you with the services described in this Wealth Accelerator Guide. Information about how we collect, use and disclose your personal information is set out in our FSG and our Privacy Policy. You should read and understand these documents before you apply. You are taken to agree with the management of your personal information in accordance with these documents when you apply.
We need to collect personal information from you for the primary purpose of providing you with a Wealth Accelerator account. There are also a number of related purposes for which the personal information is used. These are to administer investments, manage the assets you have invested in, give effect to your LifeWRAP facility instructions and to comply with Australian laws.
We cannot provide you with a Wealth Accelerator account or process an application (for either Wealth Accelerator or an accessible investment), if you do not provide us with all the information required. The information that you provide to us may be disclosed to certain organisations. The types of organisations or persons to whom we usually disclose the information provided by you include:
- regulatory or government bodies as required by law;
- your Nominated Financial Adviser or your Nominated Financial Adviser’s AFS Licensee;
- any third party service provider we engage to provide administration, custody, investment management, insurance, technology, auditing, marketing, mailing or printing services; and
- third parties engaged by you or your Nominated Financial Adviser (with your consent to do so).
If you choose to invest in any international securities or internationally domiciled managed funds or assets using Wealth Accelerator, you accept and agree that we may disclose personal information to persons located in overseas jurisdictions (‘overseas recipients’) as may be appropriate in relation to us buying, selling or holding those assets on your behalf or administering those assets. Overseas recipients of your personal information might not be subject to Australian privacy laws or another regime that protects your personal information in a substantially similar way to Australian privacy laws. We do not assess the privacy requirements applicable to overseas recipients of your personal information. If you agree to such disclosure of your personal information, subclause 8.1 of the Australian Privacy Principles will not apply to such overseas disclosures. Netwealth will not be accountable for the overseas recipient’s use of your personal information, and you will not be able to seek redress under the Privacy Act 1988 (Cth).
The personal information that we collect may be used for marketing purposes unless you indicate you do not want this to happen.
Our Privacy Policy also contains further information about why we collect information, who your information may be shared with, how you may access your personal information and seek to correct such information, and how you may make complaints about a breach of privacy.
If you have any questions about the personal information we collect, you can call or write to us. If you wish to access your personal information, which is held by us, you may contact us by email, telephone or in writing to:
The Privacy Officer
Netwealth Investments Limited
PO Box 336
South Melbourne VIC 3205
Freecall 1800 888 223 (within Australia)
Phone 03 9655 1300
Email privacy@netwealth.com.au
What if you change your mind?
Direct investors in many financial products issued in Australia have access to cooling-off rights, which means that they have the right to cancel their investment within 14 days and receive the amount paid (less certain fees and market movement, if any). However, where assets are held by us in custody for you in the Wrap Service, you do not have cooling-off rights. You may, however, close your account at any time.
As investments held in the Wrap Service are held in our name and we are not a retail investor, the 14-day cooling-off period that often applies to managed fund investments or fixed term annuities generally does not apply when investments are made using the Wrap Service.
It is also unlikely that cooling-off rights will be available to you for non-custodial assets you choose to invest in that are issued from outside of Australia.
This means that if you change your mind about an investment after it has been made, you may incur fees that would not apply if cooling-off rights existed. This is particularly important where you choose to use Wealth Accelerator to invest in products that have infrequent or restricted redemptions because, if you change your mind about the investment, you may not be able to have the investment redeemed until the next redemption opportunity. Similarly, if you use Wealth Accelerator to invest in fixed term annuities and withdraw before the end of the term, the withdrawal value may be less than the amount invested.
You should therefore speak to your Nominated Financial Adviser about the liquidity and risks of an investment before instructing us to invest your funds in it.
Complaints
We have arrangements in place to consider and seek to resolve any complaints about the services we provide to you. If you have a complaint about us, Wealth Accelerator or our other services, you may contact us by email, telephone or in writing to:
The Complaints Manager
Netwealth Investments Limited
PO Box 336
South Melbourne VIC 3205
Freecall 1800 888 223 (within Australia)
Phone 03 9655 1300
Email complaints@netwealth.com.au
We will seek to resolve your complaint within 30 days of receiving it. During this time, we will update you on the progress of your complaint.
We are a member of the Australian Financial Complaints Authority (‘AFCA’). AFCA is an independent external dispute resolution service established by the Federal Government, which deals with complaints from customers involving financial services and products. If you are not satisfied with the result of our internal complaints procedure, or it has taken longer than 30 days for you to receive a response, you may be able to refer your complaint to AFCA. AFCA will review your complaint without charge. AFCA may be contacted by email, telephone or in writing to:
Australian Financial Complaints Authority
GPO Box 3
Melbourne VIC 3001
Phone 1800 931 678 (free call)
Email info@afca.org.au
Website afca.org.au
To allow AFCA to easily identify us, quote our code number 10709.
Where you invest in a financial product (other than listed securities) using Wealth Accelerator you will have access to the same dispute resolution procedures provided by the product provider for the direct investors in that product. If you have a complaint in relation to a product that you have invested in using Wealth Accelerator, then we will assist you in attempting to resolve your complaint with the product provider by contacting the product provider on your behalf and, where necessary, providing information about your investment in the product to the product provider. While we take reasonable steps to facilitate investors in resolving their complaints with product providers, we have no control over and are not responsible for the actions of any product provider in resolving complaints (except where we are the product provider).
If you have an insurance policy linked to Wealth Accelerator, the policy will be in your name and you will be the owner of the policy. If you have a complaint about the insurance policy, you must deal directly with the insurer using the dispute resolution procedure described in the insurer’s PDS. We will assist you in dealing with the insurer by providing you with contact details for the insurer and information about the payment of premiums. However, we are not responsible for the actions of any insurer.
If you have a complaint about advice that you have received from a financial adviser, you need to contact the adviser or their AFS Licensee. The financial services guide provided by the adviser should outline their dispute resolution procedure. We are not responsible for your Nominated Financial Adviser or any other financial adviser, the advice that they provide or the actions that they may take.
Our responsibilities to you
Duties of Netwealth
We operate Wealth Accelerator in accordance with the Netwealth Wrap Deed dated 12 October 2000, as amended from time to time (‘Wrap Deed’) and the terms and conditions contained within this Wealth Accelerator Guide. The Wrap Deed governs all the services described in this Wealth Accelerator Guide except to the extent those services relate to the administration of assets held in your own name or by an alternative external custodian on your behalf (i.e. non-custodial assets for Wealth Accelerator Plus). You may obtain a copy of the Wrap Deed from us free of charge from our website or by contacting us. We, as the operator of Wealth Accelerator, have certain duties, including the following:
- we must act honestly and with reasonable care and diligence in performing our duties under our contract with our clients and we must maintain adequate arrangements to enable us to provide the services described in the Disclosure Documents in any reasonable contingency;
- if another party carries out functions for us, we must pay any compensation arising out of acts of the agents engaged by us;
- we must ensure that all Wealth Accelerator investments held by us or a custodian are held on trust for you and, on request, acknowledge the manner in which we hold the assets in custody;
- before arranging for any assets in Wealth Accelerator to be held by another custodian or sub-custodian, we must provide you with notice of the identity and contact details for that custodian;
- we must apply verification procedures for appropriately frequent reconciliation and checking of the assets held on your behalf;
- we must not take or grant a charge, mortgage, lien or other encumbrance over, or in relation to, the assets held in Wealth Accelerator unless it is for expenses and outlays made within the terms of the Wrap Deed and the Disclosure Documents, other than any unpaid fees payable to us, or in accordance with your instructions;
- we must ensure that copies of all communications that are required by law to be given in relation to the investments held on trust by us are given to you if you request them;
- we must give you electronic access to transaction information relating to assets held by us on a substantially continuous basis, and must give an annual statement to you within three months of the end of each financial year;
- we must generally act in accordance with your instructions; and
- where we hold assets for you, we must keep your assets separately identified as far as practicable in our own records.
Under the Wrap Deed, we are not responsible for any losses or liabilities incurred by clients in relation to Wealth Accelerator or the Wrap Deed, except to the extent that those losses and liabilities arise from our own negligence, fraud or wilful default.[75] Also, under the Wrap Deed:
- if we act in good faith and without negligence, fraud or wilful default, we are not liable in contract, tort or otherwise to clients for any loss suffered in any way relating to Wealth Accelerator or the Wrap Deed; and
- we are not liable for any indirect, special, punitive or consequential loss or damage even if we have notice of them and regardless of the form of actions, or any loss or damage caused by an act of God, fire, flood, civil or labour disturbances, act of any government authority or other act or threat of any authority, legal constraint, fraud or forgery.
We are liable to you if there is a loss to you due to a failure by us or by a person we engage to hold custodial property in which you have a beneficial interest, to:
- comply with the duties under the Wrap Deed and the Disclosure Documents relating to holding the custodial property; or
- observe reasonable standards generally applied by providers of custodial or depository services for holding the property held.
However, we will not be liable in those circumstances if the liability is caused by the insolvency of a person we have engaged to hold custodial property and we have taken reasonable care in engaging that person and monitoring their compliance.
We are entitled to be indemnified out of the relevant investments in a client’s Wealth Accelerator account for any liability, loss, claim, demand and cost incurred by us or our agents or our delegates in properly performing or exercising any of our powers or duties in relation to custody or administration services provided as part of Wealth Accelerator for the client.
The assets held by us may be commingled with assets held by Netwealth in its capacity as custodian or trustee of other IDPSs, funds or schemes it operates and, in certain circumstances, its own assets.
Managing our relationships and conflicts
In all dealings in relation to Wealth Accelerator, we deal with related parties on arm’s length terms and any potential conflict of interest or duty is managed in accordance with our Group Conflicts Management Policy and Framework.
Employees and directors are remunerated by Netwealth Group Services Pty Ltd for their services and may hold shares in Netwealth Group Limited.
Financial products available using Wealth Accelerator may include products in which we have an interest as issuer, operator, custodian, administrator, model manager or responsible entity, including managed funds issued by us and the Managed Account. We may receive fees in relation to these products and services as described in the ‘Other payments and benefits’ section on page 50.
Things you agree to when you apply – your contract with us to use Wealth Accelerator
When you apply to open a Wealth Accelerator account and we accept your application by opening your Wealth Accelerator account, you and we form a contract under which we agree to provide the functions of Wealth Accelerator to you and you make certain representations, promises and acknowledgements to us and give certain indemnities for our benefit. The terms of the contract include all matters covered by the Disclosure Documents.
In particular, you expressly agree to all of the following:
- You agree to the terms and conditions of Wealth Accelerator as set out in the Disclosure Documents
In addition to the matters specifically set out below, you agree to the terms and conditions of Wealth Accelerator as described in the Disclosure Documents, including all of the separate documents taken to be part of them which are relevant to you, the ‘Application’ form and all other forms completed by you or on your behalf in connection with your investment in Wealth Accelerator and, where you apply to open an account online, the matters you agree when completing the online application.
You agree that, subject to law, we may amend this contract from time to time as we reasonably consider necessary or desirable without prior notice to you. However, if any amendment is materially adverse to you, we must give you sufficient notice (generally 30 days) to enable you to close your Wealth Accelerator account and have any assets held in your account (or the net proceeds from them) transferred to you prior to the amendment taking effect. This power of amendment is in addition to our powers of amendment under the Wrap Deed.
You agree that it is your responsibility to familiarise yourself with the aspects of Wealth Accelerator described in the Disclosure Documents, including the documents incorporated in them, that are relevant to you, both when you apply to open your account and if you subsequently choose to use new or additional facilities. For example, if you initially choose to invest in managed funds through your account and then, at a future date you choose to use the LifeWRAP facility or invest in term deposits, fixed term annuities, Australian listed or international securities or choose to use a Managed Account, the terms and conditions that relate to those facilities and investments apply to you and it is your responsibility to familiarise yourself with them.
To the extent that you have a liability to us under this contract, and that liability is not fully satisfied through any right that we have to indemnification out of your account, you agree to pay us the amount of the unsatisfied liability within 30 days after we give you demand for payment.
You agree that we may close or suspend your account, or suspend certain functionality connected to your account, if, in our reasonable opinion, you have breached a material term of our contract with you, or you are using the account in a way that is unlawful, likely to be unlawful, or which would cause us to be in breach of any law. If we determine to close or suspend your account, we will notify you as soon as practicable, but we are not required to provide reasons. If we close your account, we will take whatever steps are practicable to close your account (which may include transferring the assets in the account to you or as you direct or selling down assets and paying the net proceeds to you).
- You agree it is your responsibility to check updates before making future investments
You agree that, while the information in the Disclosure Documents is up to date as at the time when they are given to you, from time to time in the future there may be changes materially affecting Wealth Accelerator and, before deciding to make further investments, it is your responsibility to familiarise yourself with the changes which are notified by us in notices to investors, in supplementary disclosure documents and in new disclosure documents (which are available to you on our website) or by a combination of these things.
Changes to information in the Disclosure Documents about Wealth Accelerator that are not materially adverse may be made available to you in the ‘Forms and documents’ section of our website or upon request by contacting us.
Where you invest further amounts in Wealth Accelerator in the future, you agree that you do so on the basis of the changes notified by us in these ways.
- You are bound by the Wrap Deed
The Wrap Deed governs all the services described in this Wealth Accelerator Guide except to the extent those services relate to non-custodial assets for Wealth Accelerator Plus. You acknowledge that the terms of the Wrap Deed apply to your investment in the Wrap Service. A copy of the Wrap Deed is available free of charge from our website or by contacting us.
- Disclosures to and from and payments to your Nominated Financial Adviser and their AFS Licensee
You agree that we can disclose to your Nominated Financial Adviser named in the section of the ‘Application’ form headed ‘Nominate your Financial Adviser and advice fees’, to their AFS Licensee and to their officers, employees and authorised representatives, information regarding your application and/or investments relating thereto.
You instruct and authorise us to deduct the fees set out in the section of the ‘Application’ form headed ‘Nominate your Financial Adviser and advice fees’ (including as varied by you from time to time) from your cash account and pay them to your Nominated Financial Adviser’s AFS Licensee on your behalf.
You agree that we may seek and receive information or documents from your Nominated Financial Adviser and their AFS Licensee in relation to advice fees deducted from your cash account, including but not limited to fee disclosure statements or statements of advice that have been provided to you by your Nominated Financial Adviser.
- Appointment of an Adviser Representative
You agree that, unless you have opted out of appointing your Nominated Financial Adviser as your Adviser Representative, you accept and understand the conditions and have read and noted the warning on page 54.
- No guarantee or advice from us
You have the sole discretion to decide what investments will be acquired, held, disposed of or otherwise dealt with. As the operator of Wealth Accelerator, we will implement your investment instructions but we are not responsible for any investment decisions you may make or for monitoring or advising you in relation to your investments and we will not provide you with personal advice in relation to Wealth Accelerator or investments made using Wealth Accelerator.
You agree that investments made using Wealth Accelerator, including any interests in any managed funds, term deposits, fixed term annuities, Australian listed securities, international securities, managed models or any other investments are subject to investment risk, including possible delays in repayment and loss of income and capital invested.
You agree that neither the repayment of capital nor the investment performance of the investments in Wealth Accelerator are guaranteed by us.
- Privacy and use of information about you
You agree that you have read and understood the ‘Privacy’ section of the Disclosure Documents and our Privacy Policy and you agree to your personal information being collected and managed in accordance with this section and our Privacy Policy. You acknowledge that you can opt out from the use of that information for the purpose of direct marketing by telephoning or by writing to us.
You agree that you will provide us with any information we may request which relates to investments made in Wealth Accelerator, and if any of the information provided by you changes, you agree to notify us as soon as possible.
If you choose to invest in international securities or other internationally domiciled managed funds or assets using Wealth Accelerator, you agree to us disclosing to persons located in overseas jurisdictions (‘overseas recipients’) such personal information as may be appropriate in relation to us buying, selling or holding international securities on your behalf or administering your international assets. You accept and understand that if you agree to such disclosure, subclause 8.1 of Australian Privacy Principle 8 within the Privacy Act 1988 (Cth) will not apply to such disclosure and you agree that Netwealth is not obliged to take reasonable steps to ensure that the overseas recipient does not breach the Australian Privacy Principles in relation to the personal information.
- Investments made for you using Wealth Accelerator
You direct us to hold your money in the cash account until you select other investment options.
You agree that we will purchase investments using funds in your cash account, in accordance with your instructions as you provide from time to time.
You agree that it is your responsibility to become properly informed about all investments you request to be made through your account before making the investments and it is your responsibility to monitor the ongoing performance of those investments. You understand that, in order to do this, you need to consider the PDS and other disclosure documents and, in the case of listed securities, any publicly available information in relation to those listed securities before the initial investment and, before you make any changes to the investment (including investments under a reinvestment instruction or dollar cost averaging plan) you need to consider whether it is necessary to obtain a current PDS and continuous disclosure information regarding the investment.
You are aware and agree that you can access information about the investment options and underlying financial products available in the Wrap Service on our website and have considered this information before you apply to use Wealth Accelerator.
You agree that, if you choose to invest in listed securities or you use managed models or other investment options agreed with us using Wealth Accelerator, you are aware of the additional costs and risks associated with investing in these investments.
You authorise and direct us to either realise or transfer to you (at our discretion), managed funds, Australian listed securities or other investments held by us in the Wrap Service on your behalf that subsequently cease to be approved investment options.
Where we hold or receive an investment through the Wrap Service which relates to or is divided between your account and one or more other clients, you authorise us to hold this interest as a tenant in common with other investors, in such shares or proportions as are reflected in our records.
You acknowledge that managed funds and managed models will continue to be purchased under the reinvestment options or dollar cost averaging plan in accordance with the instructions you have given to us until you give instructions otherwise or the reinvestment options or dollar cost averaging plan are terminated.
You acknowledge that when further investments are made for you through the Wrap Service (including under a reinvestment instruction or in connection with a regular deposit), financial products may be acquired without you being given the relevant most current PDS for the financial product (the ‘Relevant PDS’). We agree to give you access to what we reasonably believe to be the Relevant PDS as soon as reasonably practicable and in any event by the 5th business day after we receive the Relevant PDS. We do this by placing the Relevant PDS on our website. You acknowledge that further investments in the financial product will continue to be made (including under a reinvestment instruction or in connection with a regular deposit) until you instruct us otherwise.
You acknowledge that we may participate as principal in certain circumstances as set out in the ‘Corporate actions for listed securities’ section of Portfolio Service Guide 1a.
- Standing instruction – Foreign exchange conversion for transactions involving international securities and internationally domiciled managed funds
You agree that if you choose to invest in international securities or internationally domiciled managed funds, acquisition and disposal of such investments, and the receipt of dividends from such investments in currencies other than AUD, requires the conversion of AUD into other currencies or conversion of other currencies into AUD (as the case requires). You instruct us on a standing basis to effect such conversions by acquiring and/or disposing of the relevant currencies and in the relevant amounts that are necessary to give effect to any instruction provided by you or on your behalf or to convert any dividend received in a foreign currency into AUD. You acknowledge each currency conversion referred to above will involve a separate contract between you and Netwealth entered into on the date of the relevant conversion, and you agree to not vary the above standing instruction without our consent.
- Fees, expenses and maintaining a minimum cash balance
You agree to pay us all fees, expenses and costs described in the Disclosure Documents, including any amounts payable in relation to partly paid securities, and authorise and direct us to withdraw from your account an amount equal to the value of these fees, expenses and costs should this be required.
You agree that we may check from time to time to ensure that the required minimum amount is held in your cash account. If there is insufficient value in your cash account, and you have not nominated an order of priority in which you instruct us to sell down investments held in your account (either by completing an auto sell down profile in your application or at some future time), then you give us a standing instruction (which you agree not to vary) to redeem or sell assets to the extent necessary to ensure there are sufficient funds in your cash account as follows:
- first, by redeeming units from your liquid managed fund investments held by us in the Wrap Service in order of the amount invested in each investment, from largest to smallest holding;
- next, if there are still insufficient funds after redeeming your liquid managed fund investments, by selling down your holdings in Australian listed securities held by us in the Wrap Service (if applicable), in order of the value of the amount held, from largest to smallest holding;
- next, if there are still insufficient funds after selling holdings of Australian listed securities, by realising your investments in managed models held by us in the Wrap Service (if applicable) and then international securities held by us in the Wrap Service (if applicable) in order of the amount invested in each, from your largest to smallest holdings; and
- finally, if there are still insufficient funds after realising your investments in managed models and international securities, by redeeming or selling your liquid non-custodial assets (if applicable), in order of the amount held, from largest to smallest holding.
- Visa and/or residency requirements
You are responsible to ensure that the use of Wealth Accelerator and any underlying investments made through Wealth Accelerator are consistent with any requirements relevant to your residency or visa status. We provide no warranties or assurances in this regard. In particular, we provide no advice or warranties about the compliance of underlying investments with various residency or visa rules and we provide no controls, warranties or assurances that amounts held in underlying investments will at all times be sufficient to meet those requirements. To assist you in managing your residency or visa requirements you may ask us in writing to remove the auto sell down profile from your account. Except where and to the extent caused by gross negligence or wilful misconduct of us or our officers, employees or agents, you indemnify and hold harmless Netwealth to any claims that may arise from the normal operation of Wealth Accelerator in relation to the use of Wealth Accelerator to meet your residency or visa requirements.
- Instructions by email
You agree that we may accept instructions, signed, or apparently signed by authorised signatories to your account, to act on your account in the form of scanned documents sent electronically or an email from your registered email address.
You agree that we will not act upon any request that we have reason to believe is not genuine, and we do not accept emailed requests to change your nominated bank account.
If you send documents by email (or allow your Nominated Financial Adviser to do so) you agree to release, discharge and indemnify us and our directors, officers and employees against all losses, liabilities, actions, claims and demands arising from any instructions we receive by email.
- Communications online and by SMS
You agree to receive all communication electronically as described on page 58 and agree that you have reliable and continuous access to the internet.
You will have online access to your Wealth Accelerator account and you expressly agree that:
- we will not send you a quarterly report
- your Annual Statement will be available in your online account and will not be sent to you; and
- confirmation of transactions will be made by us to you through your online account and we will not send you monthly transaction confirmations.
- Verbal confirmations and authorisations by SMS
Where you have provided your mobile phone number for use in relation to certain transactions that require authorisation, you agree to provide your authority via verbal confirmation and to receive confirmation requests via SMS to this number, and agree to release, discharge and indemnify us and our directors, officers and employees against all losses, liabilities, actions, claims and demands arising from any instructions and authorisation we receive by such methods.
- Pay Anyone and BPAY facilities
You agree to use the Pay Anyone and BPAY facilities (‘the Facilities’) on the terms set out in the Disclosure Documents.
You agree that we are not liable to any person where we act in reliance on instructions through the Facilities. You agree that the person using the Facilities is solely responsible for ensuring payee account details are accurate and entered correctly and that we will have no liability in connection with incorrect payee details or typographical errors, or for any factor outside our reasonable control which may impact transaction processing.
- LifeWRAP payment authority
If you establish a LifeWRAP insurance policy with an approved insurer as described in Portfolio Service Guide 1a and you instruct your insurer that premiums are to be paid from your Wealth Accelerator account, by doing so:
- you authorise us to deduct from your cash account the insurance premium calculated by the insurer and to pay this amount to the insurer on your behalf on a continuing basis until you or your insurer instruct us otherwise;
- you agree that we may deduct the LifeWRAP administration fee from your cash account monthly in arrears;
- you agree that you have read the PDS for the insurance policy and you agree that any insurance cover will only be provided to you by the insurer on the terms and conditions set out in the policy with the insurer and that all decisions relating to insurance cover and claims under the policy are made by the insurer;
- if there is insufficient cash in your cash account to pay the insurance premiums as they fall due, you instruct us (and agree not to vary the instruction) to sell or redeem investments in the order of priority set out in clause 10 above to top up your cash account to meet the minimum cash requirement;
- despite (d), you agree that it is your responsibility to ensure that there are sufficient funds available in your account to pay the insurance premiums for your insurance cover and if, for any reason, there is insufficient available funds in your account to pay the insurance premiums as they fall due, you understand that your insurance policy may lapse or be cancelled by the insurer; and
- you agree that you have read the ‘LifeWRAP privacy statement’ in Portfolio Service Guide 1a and you agree to your and any insured persons’ personal information (including health and sensitive information) being collected, used and disclosed by us and the insurer including to each other and to their external service providers/contractors and third parties as contemplated in the privacy statement in order to assess, verify or process your application for insurance with the insurer or any claim you may make under the policy.
- Power of Attorney
In order for us to administer any non-custodial assets, you must appoint us as your attorney by executing the ‘Non-custodial Power of Attorney’ form. We will not take any action in relation to a non-custodial asset if we are not satisfied that we have validly been appointed as your attorney in accordance with the ‘Non-custodial Power of Attorney’ form.
- Implementing instructions for non-custodial assets
This section 18 relates only to administration of non-custodial assets.
We must act in accordance with your instructions. We will use our reasonable endeavours to give effect to instructions as soon as practicable but we are not bound to do so by a particular time. We may do anything that we reasonably consider necessary to give effect to an instruction or that is incidental to an instruction, even if we have not received an instruction to do that particular thing. We may determine the order in which we give effect to instructions and may give effect to part of one instruction and part of others.
Instructions will continue in force until:
- they are cancelled or suspended, but instructions may not be cancelled or suspended unless we agree; or
- they lapse or otherwise expire in accordance with the terms of the instruction or the ‘Things you agree to when you apply’ section on pages 66 – 75.
We may deem that we have not received an instruction:
- if we suspect that you are in breach of the ‘Things you agree to when you apply’ section on pages 66 – 75, or if we doubt the authenticity of the instruction;
- if either you or your Adviser Representative have not:
- properly completed such forms or done such things as we require;
- made such acknowledgments and given such undertakings as we require;
- provided such information, documentation, and other things as we require; or
- provided reasonable assistance to us to enable us to meet our obligations;
- if acting on the instruction would, in our opinion, cause us to breach any law, regulation, applicable policy issued by a regulator, or the ‘Things you agree to when you apply’ section on pages 66 – 75;
- if the instruction is to acquire or accept an asset that is not an eligible non-custodial asset;
- if acting on the instruction would be, in our opinion, impracticable or contrary to relevant market practices;
- unless you have made arrangements (satisfactory to us) for the payment of any unpaid amounts or amounts which we consider will become payable;
- if we are not satisfied as to the meaning of the instruction;
- if we are not satisfied that we are indemnified to our satisfaction against possible liability arising from acting on that instruction; or
- in any other circumstances described in the ‘Things you agree to when you apply’ section on pages 66 – 75.
We are not required to enquire as to whether instructions are genuine or proper but reserve the right to do so. We may rely on an instruction as valid unless we know that an instruction is not a genuine instruction from you or your Adviser Representative.
We may accept such evidence as we consider satisfactory as conclusive evidence of the authority of any person to give instructions.
- Liability and indemnity
This section 19 relates only to administration of non-custodial assets.
You agree to indemnify us, our related bodies corporate and employees, directors, officers, and agents against any loss arising out of or in connection with:
- your breach of the ‘Things you agree to when you apply’ section on pages 66 – 75;
- your fraud, negligence, or dishonesty,
except to the extent that such loss is caused by the fraud, negligence, or dishonesty of us, our related bodies corporate, employees, directors, officers, or agents.
To the extent permitted by law, we, our employees, directors, officers, and agents are not liable for any loss arising out of or in connection with:
- acting on your instructions (or not acting on your instructions, where we are permitted not to act);
- errors in, omissions from, non-receipt of, or invalidity of your instructions;
- your breach of the ‘Things you agree to when you apply’ section on pages 66 – 75;
- any event or circumstances beyond our reasonable control;
- reliance in good faith on information provided by a third party (for example, asset prices) or on a document or message we have no reason to believe is not authentic;
- consequential or indirect loss, loss of profits, loss of opportunity, loss of goodwill, or loss or corruption of data,
except to the extent that such loss is caused by our fraud, negligence, or dishonesty of us, our related bodies corporate, employees, directors, officers, or agents.
To the extent permitted by law, the aggregate liability of us or any of our employees, directors, officers, and agents arising out of or in connection with the ‘Things you agree to when you apply’ section on pages 66 – 75 is limited to the fees paid or payable by you under this document in respect of the period of 12 months ending on the date that the loss arose.
- Cessation of the non-custodial asset administration services
This section 20 relates only to administration of non-custodial assets.
Ceasing to use the administration service for non-custodial assets will not affect your Wealth Accelerator account. You will continue to have access to the Wrap Service for as long as you have a Wealth Accelerator account.
Our obligation to provide any services to you in respect of non-custodial assets will cease immediately if:
- the LPOA, contained in the ‘Non-custodial Power of Attorney’ form, is revoked for any reason;
- we receive an instruction from you to cease providing you with the administration service for non-custodial assets; or
- providing the administration services for a non-custodial asset may breach any laws or regulations.
In any case (and if your Wealth Accelerator account has not been closed):
- where possible, and subject to any laws or regulations, we will settle any transactions related to non-custodial assets that are in in progress but have not yet settled;
- for a period of 30 days, we will forward any communications that we receive in respect of non-custodial assets to you or your Nominated Financial Adviser (if you have one);
- after that 30-day period, we may return any communications to the sender; and
- we will remove any non-custodial assets from your Wealth Accelerator account.
- Termination for cause
This section 21 relates only to administration of non-custodial assets.
Your access to, and use of, the administration service for non-custodial assets will terminate immediately if you close your Wealth Accelerator account.
We may immediately terminate your access to, and use of, the administration service for non-custodial assets by giving you written notice if:
- you breach the terms and conditions contained within the ‘Things you agree to when you apply’ section on pages 66 – 75 and the breach cannot be remedied, or you fail to remedy the breach within 14 days of a notice from us requiring you to do so;
- we are not able to recover any fees or expenses to which we are entitled from your cash account (or, if applicable, after attempting to sell down the custodial assets in your Wealth Accelerator account); or
- you become bankrupt or insolvent.
[1] In this Wealth Accelerator Guide and on our website an ‘investment option’ includes each investment that is accessible through the Wrap Service as well as each non-custodial asset that can be administered by us.
[2] See more information in the ‘Appointing your Nominated Financial Adviser’ section in Portfolio Service Guide 1a.
[3] Not all investment options are available if you choose Wealth Accelerator Core.
[4] ‘Managed models’ are model investment portfolios available through an approved managed account service.
[5] A ‘Wholesale investment’ is an investment that, due to the requirements of the Corporations Act 2001 (Cth), we are generally only permitted to make available to a ‘Wholesale Client’. See Portfolio Service Guide 2 for details of what is required for you to be classified as a Wholesale Client.
[6] We can administer and report on a range of non-custodial assets. See Portfolio Service Guide 1a for information about eligible non-custodial assets.
[7] ‘Managed Account’ includes the Netwealth Managed Account Service (ARSN 633 923 887) of which we are the responsible entity or any other Managed Account scheme which is approved by us for use within Wealth Accelerator. See the applicable Managed Account PDS for the list of available managed models using Wealth Accelerator Core and Wealth Accelerator Plus.
[8] We only hold or administer certain warrants and structured products and have a discretion to not allow certain products in your Wealth Accelerator account.
[9] See Portfolio Service Guide 1a for information about eligible non-custodial assets.
[10] See Portfolio Service Guide 2 for details of what is required for you to be classified as a Wholesale Client.
[11] Additional fees apply to the Premium Service. The investments available to Wholesale Clients and details of the fees that apply are included in Portfolio Service Guide 2.
[12] You should take into consideration that Wealth Accelerator Core is designed for investors who expect, at least in the medium term, to have more than $10,000 in their account and Wealth Accelerator Plus is designed for investors who have more than $20,000 in their account. If you do not expect to have more than this amount in your account, at least in the medium term, you may be outside the target market for the relevant product.
[13] Netwealth is the responsible entity of the GSS funds and acts in a separate capacity to that of operator and administrator of Wealth Accelerator and custodian of the Wrap Service.
[14] Not currently available for non-custodial assets.
[15] Not currently available for non-custodial assets.
[16] ® Registered to BPAY Pty Ltd ABN 69 079 137 518.
We may at our discretion approve other bill payment facilities.
[17] We may at our discretion allow overseas accounts to be nominated.
[18] This means any method of authorisation we agree to accept, including certain forms of electronic signature.
[19] The interest rate cannot be less than 0% p.a. even if the Official Cash Rate is less than 0.80% p.a. At the date of this Wealth Accelerator Guide, the Official Cash Rate is 3.60% p.a. and the rate of interest is currently 2.80% p.a.
[20] Interest is paid based on holdings in the pooled cash account and we retain part or all of the interest earned on the pooled cash account (see page 40). The effective rate of interest you receive on the funds shown in your cash account may vary slightly from the rate published on our website. This is because there may be timing differences between when cash from transactions is shown in your account and the actual cash movements in the pooled account.
[21] Not all investment options are available if you choose Wealth Accelerator Core.
[22] An investment is not liquid if it cannot readily be converted to cash.
[23] You can request that the proceeds be paid to one of your nominated bank accounts on the same day using Real Time Gross Settlement. Same day payment is subject to your request being received and processed by us prior to our bank’s cut-off time. A fee is also applicable, see the ‘Service fees’ section on page 45.
[24] This is subject to any restrictions on the transferability of the asset imposed by the product issuer or legal limitations on transfers.
[25] None of these fees and costs include amounts payable to an adviser or other third party. If you have a Nominated Financial Adviser or a relationship with another third party, you may choose to pay additional fees. See pages 47 and 50 for details.
[26] See page 40 for further details. The rate of interest retained may change in future years if there are changes in the Official Cash Rate, the interest rate we receive and/or the declared interest rate to be credited to investors’ cash accounts.
[27] The amount of transaction costs will depend on the investment options you choose and the fees and costs applicable to those investment options and transactions. See page 44 for more information.
[28] See ‘Additional explanation of fees and costs’ on page 39 for other additional service fees, special request fees and incidental fees and costs that may apply in certain circumstances, such as the negative cash account fee and upfront and ongoing advice fees.
[29] None of these fees and costs include amounts payable to an adviser or other third party. If you have a Nominated Financial Adviser or a relationship with another third party, you may choose to pay additional fees. See pages 47 and 50 for details.
[30] We do not charge a buy-sell spread, withdrawal fee, exit fee or switching fee. However, you may incur costs for the investment options you choose. See the ‘Underlying investment fees and costs’ section on page 42.
[31] A transfer out fee may apply in certain circumstances. See page 45 for more information.
[32] None of these fees and costs include amounts payable to an adviser or other third party. If you have a Nominated Financial Adviser or a relationship with another third party, you may choose to pay additional fees. See pages 47 and 50 for details.
[33] For details about the Premium Service, including additional fees that apply, see Portfolio Service Guide 2.
[34] A family fee rebate may apply. See page 41 for details.
[35] See page 40 for further details. The rate of interest retained may change in future years if there are changes in the Official Cash Rate, the interest rate we receive and/or the declared interest rate to be credited to investors’ cash accounts.
[36] The amount of transaction costs will depend on the investment options you choose and the fees and costs applicable to those investment options and transactions. See page 44 for more information.
[37] See ‘Additional explanation of fees and costs’ on page 39 for other additional service fees, special request fees and incidental fees and costs that may apply in certain circumstances, such as the negative cash account fee and upfront and ongoing advice fees. For details of additional fees applicable to Wholesale Clients see Portfolio Service Guide 2.
[38] None of these fees and costs include amounts payable to an adviser or other third party. If you have a Nominated Financial Adviser or a relationship with another third party, you may choose to pay additional fees. See pages 47 and 50 for details.
[39] We do not charge a contribution fee, buy-sell spread, withdrawal fee, exit fee or switching fee, however you may incur costs for the investment options you choose, including a brokerage fee and/or a settlement fee (see the ‘Underlying investment fees and costs’ section on page 42) or other investment options fee (see the ‘Transaction fees and costs’ section on page 44).
[40] A transfer out fee may apply in certain circumstances. See page 45 for more information.
[41] This example is based on an investment of $50,000 and assumes that there is a constant account balance throughout the year.
[42] $500 is required to be maintained as the minimum cash requirement and $49,500 is available to be invested in investment options. This example is based on $500 in the cash account and does not include fees and costs that would be incurred in relation to investing the remaining $49,500 in an investment option. See the table below for an example of total costs.
[43] The amount of transaction costs will depend on the investment options you choose and the fees and costs applicable to those investment options and transactions. See page 44 for further details.
[44] Additional fees may apply:
- If you have a Nominated Financial Adviser or a relationship with another third party, you may choose to pay additional fees. See pages 47 and 50 for details.
- For other additional service fees, special request fees and incidental fees and costs, see pages 45 – 47 and page 50 for further details.
[45] Refer to ‘Example of annual fees and costs – Wealth Accelerator Core’ above for information regarding this amount and applicable assumptions.
[46] These are the fees and costs for the Russell Investments GSS Active 70/30 Fund at the date of this Wealth Accelerator Guide. These fees may change. See the current PDS for the Russell Investments GSS Active 70/30 Fund for up-to-date information.
[47] $500 is required to be maintained as the minimum cash requirement and $49,500 is available to be invested in investment options.
[48] Additional fees may apply:
- If you have a Nominated Financial Adviser or a relationship with another third party, you may choose to pay additional fees. See pages 47 and 50 for details.
- Where managed fund units are purchased, you may incur a buy-sell spread. Buy-sell spreads are discussed further on page 45.
- For other additional service fees, special request fees and incidental fees and costs, see pages 45 - 47 and page 50 for further details.
[49] This example is based on an investment of $50,000 and assumes that there is a constant account balance throughout the year.
[50] $500 is required to be maintained as the minimum cash requirement and $49,500 is available to be invested in investment options. This example is based on $500 in the cash account and does not include fees and costs that would be incurred in relation to investing the remaining $49,500 in an investment option. See the table below for an example of total costs.
[51] This example is based on an investment of $12,375 in international securities. This fee will only apply if you select international securities.
[52] The amount of transaction costs will depend on the investment options you choose and the fees and costs applicable to those investment options and transactions. See page 44 for further details.
[53] Additional fees may apply:
- If you have a Nominated Financial Adviser or relationship with another third party, you may choose to pay additional fees. See pages 47 and 50 for details.
- Where you buy or sell listed securities, settlement or brokerage fees may apply to each transaction along with any Advice fee - Australian listed securities agreed with your Nominated Financial Adviser and any brokerage agreed with your broker. Details can be found on pages 44 – 45 and page 47.
- If we administer non-custodial assets for you.
[54] Refer to ‘Example of annual fees and costs – Wealth Accelerator Plus’ above for information regarding this amount and applicable assumptions.
[55] These are the fees and costs for the Russell Investments GSS Active 70/30 Fund at the date of this Wealth Accelerator Guide. These fees may change. See the current PDS for the Russell Investments GSS Active 70/30 Fund for up-to-date information.
[56] $500 is required to be maintained as the minimum cash requirement and $49,500 is available to be invested in investment options.
[57] Additional fees may apply:
- If you have a Nominated Financial Adviser or relationship with another third party, you may choose to pay additional fees. See pages 47 and 50 for details.
- Where managed fund units are purchased, you may incur a buy-sell spread. Buy-sell spreads are discussed further on page 45.
- Where you buy or sell listed securities, settlement or brokerage fees may apply to each transaction along with any Advice fee - Australian listed securities agreed with your Nominated Financial Adviser and any brokerage agreed with your broker. Details can be found on pages 44 – 45 and page 47.
- If we administer non-custodial assets for you.
[58] The interest rate cannot be less than 0% p.a. even if the Official Cash Rate is less than 0.80% p.a.
[59] Super Accelerator Plus is a product of the Netwealth Superannuation Master Fund. See the Super Accelerator PDS available on our website for further information.
[60] For details of additional fees applicable to Wholesale Clients, see Portfolio Service Guide 2.
[61] Where you use your own broker to conduct a trade in Australian listed securities, that broker may charge brokerage which will be deducted from your cash account on settlement of the trade. The full amount of the brokerage, including GST, is charged to your account and paid to the broker. Where we receive an RITC in relation to this brokerage any RITC is retained by us.
[62] Where you instruct us to use your own broker to conduct a trade in international securities, that broker may charge brokerage which will be deducted from your cash account on settlement of the trade. The brokerage charged is as agreed between you and your broker and is in addition to fees charged by us.
[63] Any transaction costs, including brokerage, are deducted from your cash account on settlement of the transaction.
[64] Any registry charges to complete a transfer (including non-custodial assets) are also charged to your account.
[65] This fee does not apply to non-custodial assets. We do not participate on your behalf in class actions in relation to non-custodial assets.
[66] A tiered percentage, in place of a fixed percentage, may instead be selected for advice fees calculated on your total account balance.
[67] If you withdraw from Wealth Accelerator and close your account or if you change your Nominated Financial Adviser, any fixed dollar ongoing advice fees for the month in which this event occurs are paid on a pro-rata basis for the period up to the date of the withdrawal or change.
[68] If you withdraw from Wealth Accelerator and close your account, or if you change your Nominated Financial Adviser, any fixed dollar fixed term advice fees for the month in which this event occurs are paid on a pro-rata basis for the period up to the date of the withdrawal or change.
[69] Certain adviser groups and/or AFS Licensees have entered into arrangements with us for their clients to have access to certain investments, including certain managed funds and managed models, that are not otherwise available to investors using Wealth Accelerator. These investment options are not available if you do not have a Nominated Financial Adviser and may no longer be available to you if you change your Nominated Financial Adviser or you no longer have a Nominated Financial Adviser.
[70] See ‘Communications about your investments’ on page 59.
[71] See ‘What if you change your mind?’ on page 61.
[72] See ‘How are the voting rights attached to your investments exercised?’ on page 57’.
[73] See ‘Communications about your investments’ on page 59.
[74] We may determine at our discretion that certain communications should be sent by post to your nominated postal address.
[75] Where we agree that an investor has suffered a loss as a result of an error by us or by someone who has acted on our behalf at our instruction, we will seek to understand the loss and will endeavour to return the investor back to the position they would have been in had the error not occurred.