Understanding administration fees and the wrap fee calculator

Fees and costs are disclosed in the Macquarie Wrap product offer documents. 

Depending on the type of Macquarie Wrap account your client has, they may be charged:

• Administration fees and costs: The fees and costs associated with the general administration of the account. Where applicable, administration fees include the Wrap Cash Hub administration fee, Operational Risk Financial Requirement (ORFR) fee.
• Investment related fees and costs: The fees charged by product issuers for managed investments, relevant SMAs and other eligible investments held within the account.
• Advice fees: You can negotiate the amount of fees (if any) you receive.
• Other fees and costs: Other fees and costs may apply to the account. Examples include:
  • incidental fees that may apply where you make certain requests and/or transactions on the account
  • insurance fees. 

Some accounts may have additional fees and costs that apply (such as transaction costs).

The wrap fee calculator is a tool that supports you and your business when recommending Macquarie Wrap to a client. It's been specifically designed to help you easily assess the suitability of Macquarie’s wrap products and to help you determine what products best meet your client’s needs.

The wrap fee calculator enables you to:

• calculate indicative pricing for wrap fees, which includes platform administration fees, sub-custody fees, as well as investment costs/fees and advice fees
• compare fees for a (new or existing) single account across the product suite
• compare fees for a single account or for account group pricing (including fee grouping)
• calculate an indicative quote for grouped pricing on accounts that are currently not grouped.

To access the wrap fee calculator:

1. Log in to Adviser Online
2. From the menu, select Tools
3. Then Fee calculator.

When you've opened the wrap fee calculator, complete the following:

Add accounts

The ‘add accounts’ section allows you to select the client accounts you'd like to include in the fee calculation. Any accounts added or removed in this step will automatically update in any subsequent steps of the calculator. You can select up to eight existing accounts and/or input a prospective new investment, pension or super account. All accounts you select or enter will be treated as part of a single group for fee calculation purposes.

1. Select the dealer code
2. Select existing accounts or enter new accounts
3. Click Next

Portfolio details

The ‘portfolio details’ section allows you to manage the investment holdings associated with each of the accounts you’ve selected or entered. For existing accounts, the existing holdings will populate automatically, but you can still edit these or add new ones. For new accounts, you’ll need to search for and select the holdings you want to include and enter an amount for the holding. You can bulk edit holdings or you can amend them individually.  

Edit individually:

1. Expand the account
2. Select Add holding
3. Search for and select the holding
4. Enter the amount
5. Click Confirm.

Repeat these steps until you’ve added all holdings you want associated with the account.

Bulk edit:

1. Select Edit portfolio
2. Edit the holdings
3. Click Save
4. Click Next

Advice fees

In the ‘advice fees’ section, you can set the advice fees for the accounts you’ve selected. You can apply the same fee across the same type of accounts or you can apply individual fees for each account.

Apply the same fee to all accounts or groups of accounts:

1. Expand the first account
2. Select the fee structure and complete the amounts and/or percentages:
   • Tiered fee only
   • Tiered and flat dollar fee
   • Flat percentage fee only
   • Flat percentage and dollar fee only
   • Flat dollar fee only
   • No advice fee
3. Select what group of accounts you would like to apply the fee structure to:
   • Apply this fee structure to all accounts,
   • Apply this fee structure to all investment accounts, or
   • Apply this fee structure to all super/pension accounts
4. Click Next

Apply fees to accounts individually:

1. For each account, select the fee structure and complete the amounts and/or percentages:
   • Tiered fee only
   • Tiered and flat dollar fee
   • Flat percentage fee only
   • Flat percentage and dollar fee only
   • Flat dollar fee only
   • No advice fee
2. Click Next

Results

The results section provides a summary of the estimated wrap fees for your selected accounts. The information is organised into tabs, allowing you to easily compare your options.

The overview table in our wrap fee calculator provides a comparison of your clients’ estimated wrap fees, inclusive of any GST, and net of any applicable Reduced Input Tax Credit for your selected account(s).

To give you a comprehensive view, the calculator makes certain assumptions (see the table below for some of the primary assumptions) when you include multiple accounts in the estimate.

For comparison purposes, the calculator estimates fees based on different scenarios. The key principle is that for Macquarie Consolidator II Elevate and Engage options, it assumes all nominated accounts are grouped together and within the same product type to apply fee grouping benefits.

Note, if applicable, group caps or relationship discounts will be applied if two or more of the nominated accounts belong to the existing product that offers the cap or discount. These estimations may differ from client fee statements due to differences between nominated and actual grouping structures, account balance changes etc.

The wrap fee calculator doesn’t provide estimates for non-SMA brokerage, SMA brokerage or other incidental fees such as transaction fees. Cash earnings estimates are not provided as part of the output.

You can group up to eight Macquarie Wrap accounts of relevant family members. When eligible accounts are grouped at the end of each month, the following benefits are applied:

If you want to group for fee and/or reporting purposes, you can do this in Adviser Online. See Grouping and managing Macquarie Wrap accounts in Adviser Online for more information.