Fees are charged to investors who invest in managed funds via Snowball Effect. The fees described below are separate to any fees charged by fund managers for the management of the funds.
Funds under administration fee (FUA fee)
Investors are charged an annual percentage based fee, on the aggregate value of funds under administration, i.e. total holdings in all funds (excluding cash balances).
The fee is accrued on a daily basis, based on the daily aggregate value of funds under administration, and is charged monthly.
The percentage fee charged is dependent on the aggregate value of funds under administration (FUA). The FUA fee that applies for different levels of FUA is set out below. The FUA fees listed below are exclusive of GST, noting that the FUA fee is subject to GST.
Aggregate FUA | Applicable FUA fee (% p.a.) |
$0 - 500,000 | 0.50% (excl. GST) |
$500,000 - 1,000,000 | 0.40% (excl. GST) |
$1,000,000 - 2,000,000 | 0.30% (excl. GST) |
$2,000,000+ | 0.20% (excl. GST) |
* Bespoke fees are available for financial advisor groups. Please email [email protected] to learn more.
For example, if aggregate funds under administration total $400,000, a 0.50% p.a. (excl. GST) FUA fee is charged on all funds under administration.
If aggregate funds under administration total $600,000, a 0.40% p.a. (excl. GST) FUA fee is charged on all funds under administration.
If aggregate funds under administration total $1,500,000, a 0.30% p.a. (excl. GST) FUA fee is charged on all funds under administration.
The fee is automatically deducted from your cash holdings in your Snowball Effect cash wallet. If you do not have enough cash available in your cash wallet at the end of the month, the FUA fee will accrue on a rolling basis until cash is available to pay any accrued FUA fee. If the accrued fees are not deducted from available cash after 3 months, Snowball Effect has the right to sell available units of fund holdings to pay the accrued FUA fee.
Foreign exchange fee (FX fee) - if you invest in a fund denominated in a foreign currency, your NZ dollar investment will be converted to the applicable foreign currency at the time of the transaction at the prevailing wholesale FX rate + 0.35%. Post conversion the foreign currency amount will be invested for units in the given fund.
Transaction fee - a transaction fee of $10 is charged for each buy and sell transaction. The transaction fee is deducted from the amount invested, and the net amount is applied to buy units in the fund selected. For a sell transaction, the transaction fee is deducted from the sale proceeds.
Monthly account fee - a monthly fee of $1 is charged for each account that does not have a zero balance.