BT Wholesale European Share Fund
Additional Information to the Product Disclosure Statement
Issued 3 April 2013
This additional information forms part of the Product Disclosure Statement for the BT Wholesale European Share Fund (Fund) dated 3 April 2013 (PDS). You should read this information together with the PDS before making a decision to invest into the Fund.
This additional information is general information only and does not take into account your personal financial situation or needs. BTŪ is a registered trade mark of BT Financial Group Pty Ltd and is used under licence.
1. Restrictions on withdrawals
There may be circumstances where your ability to withdraw from the Fund is restricted. The following text contains further information on restrictions on withdrawals and should be read in conjunction with the PDS.
If the Fund is illiquid (as defined in the Corporations Act), withdrawals from the Fund will only be possible if we make a withdrawal offer in accordance with the Corporations Act. We are not obliged to make such an offer. However, if we do, you are only able to withdraw your investment in accordance with the terms of a current withdrawal offer. If an insufficient amount of money is available from the assets specified in the withdrawal offer to satisfy withdrawal requests, the requests will be satisfied proportionately amongst those investors wishing to withdraw from the Fund. Under the Corporations Act, a trust is illiquid if it has less than 80% liquid assets (generally cash and marketable securities).
The constitution of the Fund also contains specific provisions that provide us with powers in relation to withdrawals. The specific provisions in the constitution are summarised below.
|Payment of withdrawals by transfer of assets||With the consent of investors, we may transfer assets of the Fund in satisfaction of all or any part of your withdrawal request. The assets must be of the same value as the amount of your withdrawal.|
2. Indirect investors
The following text contains further information on indirect investors and should be read in conjunction with the PDS.
An investment in the Fund offered under the Fund's PDS through a master trust or wrap account does not entitle you to a direct interest in the Fund.
This means that the rights that apply to a person who invests directly in the Fund are not available to indirect investors but rather, to the operator or custodian of the master trust or wrap account. The operator or custodian of the master trust or wrap account will be recorded in the register as the investor and will be the person who exercises the rights and receives the benefits of an investor.
Persons who invest through a master trust or wrap account may be subject to different conditions from those referred to in the PDS, particularly in regard to:
- how to transact on your investment (initial and additional investments and withdrawals are determined by the master trust or wrap account operator);
- cooling-off period and rights (no cooling-off rights apply to any investments in the Fund acquired through a master trust or wrap account operator);
- timing of distributions, withdrawals and the processing of transactions are determined by the master trust or wrap account operator;
- cut-off times for transacting (e.g. applications and withdrawals) are determined by the master trust or wrap account operator;
- fund reporting and other documentation (Fund reports and investor notices are sent to the master trust or wrap account operator who then provide this information to indirect investors);
- fees and other costs (additional fees and expenses may be charged by the operator or custodian of the master trust or wrap account).
Investors in the master trust or wrap account should contact their financial adviser or master trust or wrap account operator for any investor queries.
3. Additional information about fees and costs
The following section provides detailed information about the main fees and costs that you may be charged for investing in the Fund along with further information about the additional fees and costs that could apply to your investment. This information should be read in conjunction with the PDS.
|Type of Fee or Cost 1||Amount||How and when paid|
|Fees when your money moves in or out of the Fund|
The fee to open your investment
The fee on each amount contributed to your investment by you
The fee on each amount you take out of your investment
The fee to close your investment
|The fees and costs for managing your investment 2||At the date of this PDS, management costs consist of the following component:
|The issuer fee is paid from the assets of the Fund and reflected in the unit price of your investment. The fee is calculated on the value of the Fund on the last Business Day of the month and paid to us after the end of each month.||Service fees|
Investment switching fee
The fee for changing investment options
1 - Fees in this PDS can be individually negotiated if you are a wholesale client under the Corporations Act.
2 - This fee may include an amount payable to an adviser.
From 1 July 2013, we will only pay adviser commissions where those payments are made under arrangements entered into with advisers before 1 July 2013.
Additional explanation of fees and costs
Indirect investors - additional master trust or wrap account fees
For investors accessing the Fund through a master trust or wrap account, additional fees and costs may apply. These fees and costs are stated in the offer document provided by your master trust or wrap account operator.
Fund manager and product access payments
Some wrap platforms, master trusts or other investment administration services (Platforms) charge fees for having the Fund included on their investment menus. We may, therefore, pay amounts from the fees we receive to any Platform through which the Fund is made available.
We make two types of payments to Platforms (subject to the restrictions noted below):
product access payments (as a flat dollar amount each year) for administration and investment related services, which may be an amount of up to $17,000 pa (GST inclusive) per Platform; and
- fund manager payments (based on the volume of business generated), which may be an amount of up to 40% of our issuer fee for Platforms external to the Westpac Group (i.e. up to 0.40% pa of the funds invested via the Platform) and an amount of up to 100% of our issuer fee for Platforms provided by members of the Westpac Group (i.e. up to 1.00% pa of the funds invested via the Platform).
The amount of these payments may change during the life of the PDS. As these amounts are paid by us out of our own resources, they are not an additional cost to you.
From 1 July 2013, volume based payments by product issuers to platform providers will no longer be permitted unless those payments are made under an arrangement entered into with the relevant platform before 1 July 2013. After 1 July 2013, BTIM will therefore not make volume based payments under any new arrangements with Platform providers where this is not allowed.
Fees paid to financial advisers and other persons
If you have a financial adviser, we may pay commissions to them and other persons approved by us (for example adviser dealer groups) from the fees we receive and at no additional cost to you. This amount may be at a rate of up to 1.00% pa (i.e. 100% of our issuer fee), calculated based on the value of your investment.
From 1 July 2013, the payment of commissions by product issuers to financial advisers will no longer be permitted unless those payments are made under an arrangement entered into with the relevant adviser before 1 July 2013. From 1 July 2013 BTIM will therefore no longer pay commissions to financial advisers under new arrangements with advisers.
Alternative forms of adviser remuneration
We may provide remuneration to financial advisers indirectly by paying them additional amounts (such as marketing support payments) and/or non-monetary benefits (such as business and technical support, professional development, conferences etc). If these amounts or benefits are provided, they are payable out of the fees and costs we receive and are not an additional cost to you.
We maintain a register that outlines the material alternative forms of remuneration that we pay to financial advisers and some distributors of our products, or receive from providers of some of the products available through us.
The register is publicly available and you can obtain a copy by contacting BT Customer Relations.
Ability to negotiate fees - wholesale investors
If you are classed as a wholesale investor (such as a professional investor) under the Corporations Act, in accordance with Australian Securities and Investments Commission (ASIC) policy, all fees described in this PDS may be individually negotiated. There is no set manner or method of negotiating fees. Please contact BT Customer Relations for further information.
Incidental fees and costs
Standard Government fees, duties and bank charges may also apply to your investments and withdrawals including dishonour fees and conversion costs.
Unless otherwise stated, all fees quoted in the PDS are quoted on a GST inclusive basis and net of any applicable Reduced Input Tax Credits (RITCs).
Rebates/waivers for interfunding arrangements
The Fund may invest from time to time in other funds that we, or a related entity, manage (related fund).
Our current policy is:
- no contribution fee is payable to the related fund;
- issuer fees and any performance fees are either not collected by the related fund or if they are, they are rebated in full to the investing fund;
- certain expense recoveries (if any) are fully rebated to the investing fund,
however, we may change these arrangements at any time, in which case, we will give investors 30 days notice.