Following a strategic review of our Fund of Funds range, two Nedbank Private Wealth Fund of Funds will be affected.
You are currently invested in either the Nedgroup Investments Private Wealth Defensive or Balanced Fund of Funds. These are Fund of Funds (FoFs) unit trusts that are designed to deliver specific investment outcomes based on Nedbank Private Wealth’s client advisory process. As part of a strategic review of the range to enhance client outcomes and align our investment offering to meet evolving client needs, we will make several changes in the coming months. Please look out for the details of these changes in subsequent communication, as some of them will need a response.
The first step is to align our fund management fees to 40 basis points (0,4%) across the three different fee classes we offer for FoFs. The fee changes set out in the table below will therefore apply from 3 May 2021.
Each class of fund invests in the same portfolio and has the same investment objectives, but because different fees were included in each class (depending on whether the fund fee was for investment management services only or included a portion payable to advisors for advisory services), the costs for the three classes differ. With the global move towards making fees and to whom they accrue clearer to investors, we embarked on the journey to ‘unbundle’ the different components of fees.
The extent to which you will be affected by the fund management fee alignment depends on the fee class you are currently invested in (as this affected the degree to which different fees were ‘bundled’ and how they were deducted to date).
|Class of fund||Current fund management fee||Consistent new fund management fee||Fund management fee increase or decrease from 3 May 2021|
|A class||0,75%||0,4%||Decrease of 0,35%|
|A1 class||0,25%||0,4%||Increase of 0,15%|
|A2 class||0.4%||0,4%||No change|
Please note: This fee does not include the cost of the underlying portfolios.
Please click here to access the latest fact sheets and more fund details.
Your wealth manager is available to discuss these changes and how they affect you. Thank you for your continued support.
Head: Client Enablement
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