Synergy Fees & Costs
When you invest in Synergy, fees will apply. The tables below outline the fees and costs associated with your Synergy investment.
Synergy administration fee
The Synergy administration fee covers the costs associated with the Synergy service including the investment research and portfolio construction and monitoring, the regular portfolio rebalancing and all portfolio administration and reporting.
|Portfolio size||Administration fee (per annum excl. GST)|
|$0 to $500,000||0.55%|
|$500,001 to $1,000,000||0.45%|
|$1,000,001 to $5,000,000||0.35%|
The percentage fee will be charged monthly as detailed in the above table when the total portfolio value reaches the dollar levels specified. The charged percentage fee applies only to the portion of the portfolio value within the dollar range specified. These fees are not charged on cash held in the cash management account. GST is currently charged on 10% of the administration fee, but this may change in the future.
Investment management fees
Each of the funds in your portfolio will charge an investment management fee. The weighted average investment management fee for each of the Synergy portfolios is provided in the table below.
|Portfolio||Weighted average management fee (per annum)^|
|20% Growth / 80% Income||0.31%|
|30% Growth / 70% Income||0.31%|
|40% Growth / 60% Income||0.32%|
|50% Growth / 50% Income||0.33%|
|60% Growth / 40% Income||0.34%|
|70% Growth / 30% Income||0.35%|
|80% Growth / 20% Income||0.37%|
|90% Growth / 10% Income||0.38%|
|98% Growth / 2% Income||0.39%|
|20% Growth / 80% Income||0.28%|
|30% Growth / 70% Income||0.27%|
|40% Growth / 60% Income||0.27%|
|50% Growth / 50% Income||0.26%|
|60% Growth / 40% Income||0.26%|
|70% Growth / 30% Income||0.26%|
|80% Growth / 20% Income||0.26%|
|90% Growth / 10% Income||0.26%|
|98% Growth / 2% Income||0.26%|
|30% Growth / 70% Income||0.26%|
|50% Growth / 50% Income||0.25%|
|80% Growth / 20% Income||0.25%|
|98% Growth / 2% Income||0.25%|
|25% Growth / 75% Income||0.34%|
|40% Growth / 60% Income||0.37%|
|55% Growth / 45% Income||0.42%|
|70% Growth / 30% Income||0.44%|
|85% Growth / 15% Income||0.49%|
|98% Growth / 2% Income||0.53%|
|15% Growth / 85% Income||0.49%|
|30% Growth / 70% Income||0.59%|
|50% Growth / 50% Income||0.72%|
|70% Growth / 30% Income||0.85%|
|90% Growth / 10% Income||0.95%|
The individual investment management fees and transactions costs for all of the funds in the Synergy portfolios are provided in the table below.
|Asset Class||Fund||Management fee
(per annum excl. GST)
buy / sell
|Australasian Equities||Allan Gray Australia Equity Fund (Class B)*||0.00%||0.20% / 0.20%|
|Castle Point Trans-Tasman Fund||0.70%||0.30% / 0.30%|
|Dimensional Australian Small Company Trust||0.61%||0.10% / 0.10%|
|Dimensional Australian Sustainability Trust||0.28%||0.08% / 0.08%|
|Dimensional Australian Value Trust||0.34%||0.08% / 0.08%|
|Harbour NZ Index Shares Fund||0.09%||Nil|
|Harbour Sustainable NZ Shares Fund||0.09%||Nil|
|iShares Australian Equity Index Fund||0.11%||0.08% / 0.08%|
|International Equities||AMP Capital All Country Global Shares Index Fund||0.35%||0.07% / 0.07%|
|Capital Group New World Fund||0.95%||Nil|
|Dimensional Emerging Market Value Trust||0.73%||0.25% / 0.25%|
|Dimensional Global Core Equity Trust (NZD)||0.36%||0.12% / 0.12%|
|Dimensional Global Small Company Trust||0.65%||0.12% / 0.12%|
|Dimensional Global Sustainability Trust (NZD)||0.36%||0.12% / 0.12%|
|Dimensional Global Value Trust||0.46%||0.10% / 0.10%|
|iShares Emerging Market IMI Equity Index Fund||0.24%||0.30% / 0.35%|
|iShares MSCI EM SRI UCITS ETF (SUSM)||0.25%||0.40% / 0.40%**|
|iShares Wholesale Screened International Equity Index Fund (E2)||0.10%||0.07% / 0.07%|
|Kernel Global Infrastructure Fund||0.29%||Nil|
|Nikko AM Global Shares Hedged Fund
|0.90%||0.07% / 0.07%|
|Platinum International Fund (P Class)***||1.10%||0.15% / 0.15%|
|Vanguard Ethically Conscious International Shares Index Fund||0.20%||0.07% / 0.07%|
|Vanguard Ethically Conscious International Shares Index Fund (NZD Hedged)||0.26%||0.12% / 0.12%|
|Vanguard International Share Index Fund||0.18%||0.06% / 0.06%|
|Listed Property||Dimensional Global Real Estate Trust (NZD Hedged)||0.40%||0.12% / 0.12%|
|New Zealand Fixed Interest
||Harbour NZ Corporate Bond Fund (PIE)||0.25%||Nil|
|Milford Trans Tasman Bond Fund||0.55%||Nil|
|Simplicity NZ Bond Fund||0.10%||Nil|
|International Fixed Interest||AMP Capital Ethical Leaders Hedged Global Fixed Interest Index Fund||0.28%||0.17% / 0.06%|
|Bentham Global Income Fund (NZD Hedged)||0.57%||0.28% / 0.28%|
|Daintree Core Income Trust (NZD Hedged)||0.17%||0.05% / 0.05%|
|Dimensional Five-Year Diversified Fixed Interest Trust (NZD)||0.28%||0.05% / 0.05%|
|Dimensional Global Bond Sustainability Trust (NZD)||0.35%||0.10% / 0.10%|
|Dimensional Global Bond Trust (NZD)||0.35%||0.10% / 0.10%|
|Dimensional Two-Year Sustainability Fixed Interest Trust (NZD)||0.25%||0.05% / 0.05%|
|Hunter Global Fixed Interest Fund||0.44%||0.00% / 0.10%|
|Vanguard Ethically Conscious Global Aggregate Bond Index Fund (NZD)||0.28%||0.13% / 0.13%|
|Cash Equivalents||Nikko AM NZ Cash Fund||0.15%||0.00% / 0.00%|
All fees and costs are correct as at 28 October 2021 but are subject to change. The long term expectation is for sell spreads to be approximately equal to buy spreads for all funds, however during periods of extreme market volatility, some buy/sell spreads may widen temporarily.
Investment management fees are made up of management fees, expense recoveries and indirect costs. As a result, the investment management fees published by the fund managers are estimates only and the actual costs incurred may differ.
^An additional GST component may be charged on top of this. That component is unable to be reliably estimated, as fund manager practices vary with respect to reporting their charges on a GST inclusive or exclusive basis, and the proportion of their charges that attract GST.
*This fund charges a performance fee of 35% of the fund’s outperformance in comparison to its benchmark. A performance fee is only payable where the fund’s outperformance exceeds the last high water mark. Please refer to the fund’s Product Disclosure Statement for further details.
**This fund is a United States dollar (USD) listed exchange traded fund (ETF). As this is a listed security, purchases and sales of this ETF will incur brokerage costs. Brokerage is currently charged at a minimum of USD50 per transaction. The Synergy Investment Programme will make best efforts to trade this ETF as efficiently as possible, but on some occasions your transaction costs on this ETF may exceed the % of trade value stated in the table above.
***This fund charges a performance fee of 15% of the amount by which the fund’s return (after investment management fees) exceeds the return of the fund’s reference benchmark. Any accumulated underperformance from previous periods must be recovered before a performance fee can be recognised in the fund’s unit price.
Other fees and costs associated with your Synergy investment are explained in more detail in the Investment Proposal for each portfolio.