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
Two former senior Global X employees have launched their own ETF provider, ETF Shares, focused on offering index ETFs for advisers and retail investors.
With GCQ Funds Management and Lakehouse Capital making their recent ETF debuts, the two fund managers unpack why financial advisers are essential to their respective launches.
ETF provider Global X is set to launch its latest ETF, focused on artificial intelligence infrastructure.
Index provider MSCI has unveiled two measures to make it easier for financial advisers and wealth managers to access transparent insights into private assets.
