MLC MasterKey Investment Service & MLC MasterKey Unit Trust Update to your fees and costs
We’re committed to giving you the best opportunity to reach your financial goals. That’s why we’re continuing our efforts to improve our products—for the benefit of you and all our investors.
As part of this, there will be a few updates to our MLC MasterKey Investment Service and MLC MasterKey Unit Trust products which we outline below.
What we’re updating
The following updates will come into effect on 2 November 2020:
- The MLC MasterKey Investment Service administration fee will be reduced for the MLC Cash Fund by 0.26% pa; and for all other investment options will be reduced by 0.41% pa.
- The MLC MasterKey Unit Trust management fee will be reduced on the MLC Cash Fund by 0.26% pa; and for all other investment options will be reduced by 0.41% pa.
- We’ll provide investors with a monthly fee rebate on balances excluding the MLC Cash Fund, for combined account balances of $50,000 or more.
- Any contribution fees investors pay will be removed.
- Any asset-based or contribution-based commission (if applicable) will stop.
MLC MasterKey Investment Service
Administration fee updates
Administration fees are part of the costs of managing the investment. For MLC investment options managed by MLC, the administration fee is calculated daily and is reflected in the daily unit price. For other investment options, the administration fee is deducted monthly from the investor’s balance in the MLC Cash Fund. We outline the updates to the administration fee below.
| Administration fee1 | ||
|---|---|---|
| Investment option | Currently (pa) |
From 2 November 2020 (pa) |
| MLC Cash Fund | 0.81% |
0.55% |
| MLC Vanguard Australian Share Index Fund | 1.13% |
0.72% |
| All other investment options | 1.35% |
0.94% |
1Includes GST and is net of Reduced Input Tax Credits (where applicable).
MLC MasterKey Unit Trust
Management Fee updates
Management fees are the fees and costs of managing the investment. The management fee is calculated daily and is reflected in the daily unit price. We outline the updates to the management fee below.
| Management fee1 | ||
|---|---|---|
Investment option |
Currently (pa) |
From 2 November 2020 (pa) |
MLC Horizon 2 Income Portfolio |
1.76% |
1.35% |
MLC Horizon 3 Conservative Growth Portfolio |
1.86% |
1.45% |
MLC Horizon 4 Balanced Portfolio |
1.89% |
1.48% |
MLC Horizon 5 Growth Portfolio |
1.92% |
1.51% |
MLC Horizon 6 Share Portfolio |
1.95% |
1.54% |
MLC Horizon 7 Accelerated Growth Portfolio |
2.14% |
1.73% |
MLC Property Securities Fund |
1.85% |
1.44% |
MLC Australian Share Fund |
1.96% |
1.55% |
MLC IncomeBuilderTM |
1.90% |
1.49% |
MLC Vanguard Australian Share Index Fund |
1.40% |
0.99% |
MLC Global Share Fund |
2.10% |
1.69% |
MLC-Platinum Global Fund |
2.23% |
1.82% |
MLC Cash Fund |
1.06% |
0.80% |
1Includes GST and is net of Reduced Input Tax Credits (where applicable).
Fee rebate updates (MLC MasterKey Investment Service and MLC MasterKey Unit Trust)
Fee rebates are amounts paid into your account to reduce the overall fees they pay.
Investors will now receive a monthly fee rebate as outlined below. The rebate applies to all investment options excluding the MLC Cash Fund.
| Fee rebates1 | |
|---|---|
| Amount of combined account balance2 | From 2 November 2020 (pa) |
$0 to less than $50,000 |
0.000% |
$50,000 to less than $100,000 |
0.056% |
$100,000 to less than $200,000 |
0.103% |
$200,000 to less than $400,000 |
0.149% |
$400,000 and over |
0.205% |
1Includes GST and is net of Reduced Input Tax Credits (where applicable).
2Based on the combined account balances your client, and any eligible linked investor have, in MLC MasterKey accounts.
This rebate is paid into the investor’s account monthly, based on their MLC MasterKey Unit Trust or MLC MasterKey Investment Service account balance each month. To receive the rebate, the investor’s account must be open at the time the rebate is paid.
It will show on the investor’s account online and in the annual statement.
What this means for you
If you’re invested in these products, you don’t need to do anything for these updates to happen. You may like to speak with your financial adviser to discuss if this product is still right for you.
We’re here to help
If you have any questions, please speak with your adviser or call us on 132 652 between 8am and 6pm (AEST/AEDT) Monday to Friday.
