Fees and Charges

rsz_1rsz_money_hand

Te Rūnanga o Ngāi Tahu (Te Rūnanga) has agreed to pay all the fees and expenses of Whai Rawa Fund Limited (WRFL) (acting in its capacity as Manager of the Whai Rawa Unit Trust) on an on-going basis while WRFL remains as the Manager of the Whai Rawa Unit Trust.

In the future, Te Rūnanga may decide to reduce the amount it pays towards fees and costs, or decide not to pay them at all.  Any fees or costs not paid by Te Rūnanga or any other third party will be met by the Whai Rawa Unit Trust and charged to Members’ accounts.

Te Rūnanga has agreed to cover further costs of the Whai Rawa Unit Trust that are not the costs of running WRFL/the Manager on an annual basis with the current commitment being until June 2018.

Specific costs connected to outsourced investment management services for the Whai Rawa Unit Trust are charged to the scheme and thereby funded by members.

Outlined below is information regarding the various fees and costs associated with the Whai Rawa Unit Trust.

Manager’s Fee

The Manager (Whai Rawa Fund Limited) is entitled to be reimbursed for all costs and expenses it incurs in its role as Manager of Whai Rawa.  The Manager is also entitled to reimbursement for any GST it is required to pay on those expenses.  You can find out the current amount of the level of costs and expenses incurred by the Manager at the time you join Whai Rawa by contacting the Contact Centre on 0800 WHAI RAWA (0800 942 472).

These are costs Te Rūnanga has agreed to pay on an on-going basis.

Administration Manager’s Fee

The Administration Manager’s (Link Market Services Ltd) fee contains two components, i) a fixed fee for base services; and ii) a volume based fee relating to the number of Members in the Whai Rawa Unit Trust.  The Administration Manager’s fee is currently capped at $700,000 per annum but may change from time to time on agreement with the Manager.  You can find out the current amount of the Administration Manager’s fee at any time by contacting the Contact Centre on 0800 WHAI RAWA (0800 942 472).

These are costs Te Rūnanga has agreed to pay on an on-going basis.

Trustee’s Fee

A minimum annual fee of $20,000 is charged.  The Trustee (Trustees Executors Limited) is also entitled to be reimbursed for any GST it pays on its fee.  The Trustee’s fee may change from time to time on agreement with the Manager.  You can find out the level of the Trustee’s fee at any time by contacting the Contact Centre on 0800 WHAI RAWA (0800 942 472).

These are costs Te Rūnanga has agreed to cover until at least June 2018.

Investment Manager’s Fees

The Investment Manager is responsible for providing investment management services to Whai Rawa. The Investment Manager is entitled to a fee payable from Whai Rawa’s assets equal to 0.47% per annum of the net asset value of the funds invested by Whai Rawa in the Conservative Fund promoted by the Investment Manager up to and including $50 million and 0.44% per annum on balances over $50 million.

The Trustee of the Investment Manager (Mercer (NZ) Ltd) is also entitled to recover expenses incurred in operating the fund.  There is no limit on the amount of these expenses but based on previous years, they are not expected to exceed 0.02% per annum of gross assets.  The Investment Manager’s fee may change from time to time on agreement with the Manager.