Allan Gray reduces fee structure
Contrarian asset manager Allan Gray Australia has reduced the fee structure charged by its platform, Allan Gray Solutions, which encompasses Allan Gray Superannuation (AGS), Allan Gray Retirement (AGR) and Allan Gray Investments (AGI).
This included a reduction in AGI fees of balances above $50,000 from $375 to $265 per annum (pa) while balances over $1 million went from $2,125 to $1,675 pa.
Meanwhile, AGS and AGR fees for balances above $50,000 went from $315 to $330 pa while for balances over $1 million, fees went from $2,750 to $2,025 pa.
Investment fee changes (AGI)
|
Account balance |
Current fees (%) |
Current fees ($) |
New fees (%) |
New fees ($) |
|
$50,000 |
0.75% |
$375 |
0.53% |
$265 |
|
$100,000 |
0.50% |
$500 |
0.38% |
$380 |
|
$250,000 |
0.35% |
$875 |
0.29% |
$725 |
|
$500,000 |
0.27% |
$1,375 |
0.22% |
$1,125 |
|
$1 million |
0.21% |
$2,125 |
0.17% |
$1,675 |
Superannuation and retirement fee changes
|
Account balance |
Current fees (%) |
Current fees ($) |
New fees (%) |
New fees ($) |
|
$50,000 |
0.63% |
$315 |
0.66% |
$330 |
|
$100,000 |
0.48% |
$480 |
0.46% |
$460 |
|
$250,000 |
0.36% |
$900 |
0.34% |
$850 |
|
$500,000 |
0.32% |
$1,600 |
0.26% |
$1,325 |
|
$1 million |
0.27% |
$2,750 |
0.20% |
$2,025 |
Allan Gray head of product, Deborah Barr, said the investment firm saw its platform as a commodity product which was priced as low as it could.
“We believe that over the long term, wealth is created through the financial advice people receive and the investments that they hold. The platform should be low cost, to minimise the impact of overall costs on wealth creation over the long term,” she said.
“Not only do advisers and individuals on the platform have a simpler fee structure, but clients will also pay no asset-based administration fees for any Allan Gray Australia managed funds that they hold.
“All our clients get the new arrangement, with an additional reduction in administration fees available for clients using the same financial adviser, through family pricing.
“Furthermore, the new structure is competitive at every price point. So, as someone’s balance grows over the long term, the administration fee remains competitive.
“With Allan Gray Solutions, whether you are an adviser or an individual, everyone gets the same control, transparency, and ability to only pay for what you invest in.”
AUTHOR
Liam Cormican
Recommended for you
Lonsec and SQM Research have highlighted manager selection as a crucial risk for financial advisers when it comes to private market investments, particularly due to the clear performance dispersion.
Macquarie Asset Management has indicated its desire to commit the fast-growing wealth business in Australia by divesting part of its public investment business to Japanese investment bank Nomura.
Australia’s “sophisticated” financial services industry is a magnet for offshore fund managers, according to a global firm.
The latest Morningstar asset manager survey believes ETF providers are likely to retain the market share they have gained from active managers.
