Netwealth Investment Wrap Changes
Notification of changes - 1 March 2020
Summary of the changes
Below is a summary of changes which may impact the way you use Investment Wrap.
This notice updates information in the Important Information booklet issued for Investment Wrap dated 1 July 2019. This notice is to be read in conjunction with the Important Information booklet. The Important Information booklet is available from the Forms and Documents section on our website.
We have introduced new functionality:
We are making some changes to fees:
- Changes to the way we charge administration fees from 1 January 2021
- A reduction to the international securities fee for holdings over $1 million
- A foreign currency holding fee
- The removal of upfront advice fees on future investments
We have provided some additional information:
A new Premium Service for Wholesale Clients
Account holders who qualify and use the service as Wholesale Clients have access to additional investment options through the Premium Service.
Details of the Premium Service and how to qualify as a Wholesale Client are included in Netwealth Wrap Service Wrap Service Guide 2 Premium Service for Wholesale Clients which is available on our website or by contacting us. This Guide replaces the Wrap Service Guide 2: Wholesale Client Information Guide.
The Premium Service includes a premium asset fee of $50.00 per year for each wholesale managed fund and for each Australian bond held in your account. The premium asset fee is deducted annually from your cash account, following the end of the financial year to which it relates. The fee is applied for each wholesale managed fund and for each Australian bond you hold or have held in your account during the year.
If you withdraw your entire account balance and close your account, the premium asset fee will be deducted from your cash account before the proceeds are paid to you.
The premium asset fee will apply to existing investors from 1 July 2020 and replaces the unregistered scheme fee for Wholesale Clients, which will no longer apply from 1 July 2020. .
Paying bills with BPAY®
We have introduced the BPAY facility for existing investors. BPAY allows you to pay certain bills from your cash account.
You are required to provide your mobile phone number for use in relation to BPAY. We may notify you of payments made using BPAY by sending a notification to the mobile phone number you provide.
You have the option to also allow your Adviser Representative to make payments on your behalf using BPAY. You can instruct us to give your Authorised Representative permission to use BPAY by logging into your account and changing your bank settings. You can also remove this permission at any time.
If you have previously given permission for your Adviser Representative to make payments using pay anyone facility, your Adviser Representative will automatically be given permission to make payments using BPAY. You can see and change the permissions by logging into your account and changing your bank settings.
Accounts that require multiple signatures to transact (including joint, SMSF, trust and company accounts) do not have access to BPAY.
® Registered to BPAY Pty Ltd ABN 69 079 137 518.
Changes to the way we charge administration fees
From 1 January 2021 the administration fee will be replaced with a new account fee. You can transfer your account to the new fee scale before 1 January 2021 if you wish.
The new account fee will apply 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 follows:
| Account balance | % applicable |
| $0 to $250,000 | 0.35% p.a. |
| $250,000 to $500,000 | 0.25% p.a. |
| $500,000 to $1,000,000 | 0.15% p.a. |
| $1,000,000 to $2,500,000 | 0.05% p.a. |
| Balance over $2,500,000 | Nil. |
The fixed amount is calculated daily at the rate of $240 per calendar year which applies to each Investment Wrap account.
The minimum account fee is calculated daily, at the rate of $550 per calendar year and applies to each Investment Wrap account.
If you wish to transfer your account to the new fee scale before 1 January 2021 or obtain more information about the impact of this change on your account, please contact your adviser or Netwealth.
You can find information about your existing account fee rates by logging onto your account and viewing your fee profile, or by contacting us. If you or your adviser have previously negotiated different fees to apply to your Netwealth account, the fees in this table may not apply to you.
Note that Netwealth accounts can only be family linked where the administration or account fee is the same scale or a compatible scale, as determined by us. This means that if an account is transferred to the new fee scale, it can only be linked with another account that also uses the new fee scale. Please see the disclosure documents for more information about family linking accounts.
Changes to the international securities fee
We have changed the way the Administration fee – international securities fee is calculated and introduced a tiered fee structure as set out below. This change results in a reduction in the amount of the fee for investors who hold over $1m in international securities. This change is effective from 9 January 2020.
| Value of international securities | % applicable |
| $0 to $1 million | 0.150% p.a. |
| $1 million to $2 million | 0.125% p.a. |
| $2 million to $3 million | 0.100% p.a. |
| Balance over $3 million | 0.050% p.a. |
The international securities fee is calculated daily and is deducted monthly in arrears from your cash account, or on full withdrawal from your account.
Foreign currency holding fee
Trading or holding international securities may result in us holding foreign currency on your behalf. Wholesale Clients may also hold foreign currencies through the Premium Service. Where we hold money in a foreign currency account on your behalf we do not credit interest to that account. If we receive interest on money held in foreign currencies, any interest received is retained by us, as a foreign currency holding fee. This fee will apply to all Investment Wrap accounts from 1 May 2020.
Upfront advice fee on future investments
If you have nominated a financial adviser, you may agree with them to pay an upfront advice fee on investments made into your account.
From 1 March 2020 we will not accept a standing instruction from you to pay an upfront advice fee on any subsequent investments or in relation to a regular saving plan.
Where you have previously provided an instruction to us to pay an upfront advice fee on any subsequent investments or in relation to a regular savings plan, this instruction will continue to apply until further notice. You can find information about your advice fees by logging onto your account and viewing your fee profile, or you can contact Netwealth. If you want to change your advice fees you should contact your adviser or us.
Change to the cash account and associated costs
The description of the cost identified as a ‘cash account fee’ has been changed to ‘interest retained on the cash account’ to better describe the nature of this cost to investors. There is no change to the way this cost is applied or the way it is calculated. This cost is not deducted from your account.
Additional information about how direct and indirect investments differ
Investment Wrap may provide access to certain managed funds and managed models that are not available to you as direct investments. 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 Investment Wrap.
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 will provide further information in this regard.
Additional information about user/third-party user risk
We have various security measures to ensure that your transactions and personal information are protected. However, you must also play a big part in protecting your financial and personal information. You should also consider obtaining professional advice about protecting your computer and your personal and financial information. Areas that you should be particularly aware of are:
- managing your password (keeping it confidential and changing it regularly);- hoax emails or messages purporting to be from us
- we will never ask you to provide your password or other personal details via email or SMS;
- managing your payment or withdrawal facilities, including your nominated bank accounts and permissions for Pay Anyone and BPAY; and
- changing who can access your account – you should tell us immediately if you want to change or remove someone (such as a financial adviser) who you have previously authorised to view or transact on your online account.
You should keep your personal details in your account up to date, including your mobile phone number and any nominated bank account details, and we encourage you to access and review your account regularly.
We act on instructions provided by you and your Adviser Representative (if you have one). You are responsible for ensuring that your instructions are accurate and correct. Incorrect payment instructions provided by you or your Authorised Representative may result in funds being transferred to the wrong account and we may not be able to recover them for you. When you transact on your account you should consider the information provided in the disclosure documents about how your account works and any additional information we provide about the transaction.