1. Professional advice on a time charged basis at $330 per hour (incl. GST). This will cover such work as: financial modelling and analysis after meeting you, risk profiling, technical advice (eg, on superannuation), up-front asset allocation, structuring of a portfolio and assistance with implementing investments you have approved. We only provide initial advice in writing through a Statement of Advice (for both Full Service Portfolio Management and Fund Advice Service), and we generally quote with time ceilings for this work.
2. Full Service Portfolio Management advice and transacting on an on-going basis, using Macquarie WRAP (IM or SPM) as outlined in our services page. There is no entry fee for this service. Our on-going p/a WP fees are based upon assets under advice, and inclusive of GST, for assets held within IM are: 0.66% for the first $1m, 0.55% for the next million, and 0.44% for assets over $2m; and for assets held within SPM, are correspondingly: 0.615%, 0.5125% and 0.41% over $2m – being lower for SPM due to the reduced effective GST impost of 2.5%. Fees are payable to Macquarie for their WRAP services (IM and SPM). Macquarie has granted new WP clients a significant volume rebate for its administration fee (being 0.165% for the first $50,000 of each investment), which is all credited to new clients. Additionally, Macquarie has granted our clients access to their lower “High Net Worth” administration fee structure. Many of our clients with aggregate family portfolios over $3m are now enjoying this reduced fee structure.
For managed funds, wholesale fund MERs (management expense ratios) are applicable – several of which (ie, the funds recommended by WP and related low MERs) are not available in the retail market. Transacting and other costs/fees are disclosed in the WRAP (IM/SPM) offering documents and in our Statement of Advice.
3. Fund Advice Service: WP receives on-going commissions from fund managers, generally around 0.33% to 0.66% p/a on investment value. WP provides a notional credit to the client each year for these fees, thereby enabling the client to call upon our time for advice at $330 p/h within each year. We rebate all up-front commissions from fund managers, which are typically used to purchase additional units in the fund.
Additionally, we may reach negotiated arrangements with corporations and institutions for consulting investment services, as our Australian Financial Services Licence authorises us to deal for and provide advice to both retail and wholesale clients.
Dealing/transacting for you, but ownership always stays with you
Under both our services (Full Service or Fund) we are authorised to assist you in transacting and dealing in any investments, but we never take title to any of your assets, as custodian or otherwise. Your assets are either owned directly by you (eg, a fund), or by a custodian (being Macquarie) holding them in trust for you as your nominee – whereby you hold the beneficial ownership at law. Under both service options, we can arrange for you to have access to secure web sites that contain details of your portfolio with time sensitive information.