220BCollective investment products

220B Collective investment products

(1) Cost of product information for each investment option offered by the managed investment scheme:

(a) must be included in the “Fees and other costs” section of the Product Disclosure Statement, following the Example of Annual Fees and Costs;

(b) must include the following heading and text immediately before the presentation of the first cost of product information:

Cost of product for 1 year

The cost of product gives a summary calculation about how ongoing annual fees and costs can affect your investment over a 1-year period for all investment options. It is calculated in the manner shown in the Example of annual fees and costs.

The cost of product assumes a balance of $50,000 at the beginning of the year with a contribution of $5,000 during the year. (Additional fees such as an establishment fee or an exit fee may apply: refer to the Fees and costs summary for the relevant option.)

You should use this figure to help compare this product with other products offered by managed investment schemes.

(c) must be set out as using the following form;

and

(d) must be calculated in accordance with the method set out in the Example of Annual Fees and Costs in clause 212 and Division 6.

(2) Cost of product information is not required in a Product Disclosure Statement where the Statement relates to only one investment option and an Example of Annual Fees and Costs has been included in relation to that option in accordance with Division 5.