101CPerformance fees

101C Performance fees

(1) Performance fee means an amount paid or payable, calculated by reference to the performance of:

(a) a collective investment product;

(b) a superannuation product;

(c) a MySuper product;

(d) an investment option;

(e) an interposed vehicle; or

(f) part of such a product, option or vehicle.

(2) In subclause (1) performance includes:

(a) income in relation to the assets of, or attributed to, the product, option or interposed vehicle, or part; and

(b) capital appreciation (realised or unrealised) to the value of the product, option or interposed vehicle, or part.

(3) For the purposes of calculating the performance fees for a Product Disclosure Statement:

(a) include the performance fees that accrued in relation to:

(i) the product or option or part of such product or option; and

(ii) any interposed vehicles referable to that product or option or part of such product or option,

each averaged over the previous 5 financial years;

(b) where a product, option or interposed vehicle or part was not in operation for the previous 5 financial years—calculate the average by reference to the number of financial years in which the product, option, interposed vehicle or part has operated;

(c) where a product, option or interposed vehicle or part did not have a performance fee charging mechanism in place in each of the previous 5 financial years—calculate the average by reference to the number of financial years in which the product, option, interposed vehicle or part had a performance fee charging mechanism in place;

(d) where a product, option or interposed vehicle or part was first offered in the current financial year—calculate the average by reference to the responsible person’s reasonable estimate of the performance fee for the current financial year adjusted to reflect a 12 month period.

Note: In the Fees and Costs Summary, the performance fees:

(a) in relation to superannuation products—must be included in the “Investment fees and costs” line item; and

(b) in relation to collective investment products—must be specified in the “Performance fees” line item.

(4) For the purposes of calculating the performance fees for a periodic statement, include the performance fees that accrued in relation to:

(a) the product or option or part of such product or option; and

(b) any interposed vehicles referable to that product or option or part of such product or option,

for the reporting period to which the statement relates.