Investment costs

Investment fees and costs

The investment fees and costs shown above are deducted from the assets of the relevant investment options before the unit price is determined. Investment fees and costs are expressed as an annual percentage of the net assets of each investment option.

The investment fees and costs for each investment option are based on costs for the financial years ended 30 June 2022 and 2023 (except for performance fees - see below). The actual fees and costs each year may be higher or lower than the costs shown and may change without prior notice.

Where a tax deduction is available to the fund for investment fees and costs and expenses, the benefit is passed on to members through lower taxation and reduced investment fees and costs (excludes Rest Pension – Retirement accounts). Your annual statement will disclose the investment fees and costs (including performance fees) that have been applied to your investment for the year.

Performance fees

We do not charge a performance fee. Some investment options however may incur performance fees which are included as part of the investment fees and costs. Because performance fees are only incurred if investment managers outperform an agreed target return, this may result in the investment fee changing from time to time. Performance fees and target returns may also vary from year to year.

The performance fees shown in the table above are generally based on an average of the amount incurred for the previous 5-year period. See the ‘Performance fees’ section in the Additional Information on Fees and Costs document or Rest Pension PDS at rest.com.au/pds for more information.

Performance fees for each investment manager may be calculated differently. However, they all have the following common elements:

• only payable to a manager if they exceed a target level of return;
• calculated and accrued regularly (where possible), and incorporated into the calculation of unit prices; and
• typically payable annually.

Transaction costs

Transaction costs vary depending on the investment option you have selected to invest in. These costs can include expenses such as brokerage costs, settlement fees, stamp duty and buy-sell spreads. These are estimated costs based on the information provided to Rest and will vary from year to year depending on the composition of the underlying fees and costs associated with the investment.

Transaction costs are accrued and reflected in the investment option’s unit price and deducted from the assets of the underlying investment option.

For information about the fees and costs of your Rest investment, please read the Additional Information on Fees and Costs or Rest Pension PDS