Financial Services Guide - 1 July 2021 - Wilsons Advisory
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Financial
Services Guide
1 July 2021
Issued by Wilsons Advisory and Stockbroking Limited (Wilsons) ABN 68 010 529 665 - Australian Financial Services Licence No 238375.
1 July 2021The providing entity of the services
Lack of Independence
described in this document is:
Disclosure of Lack of Independence required under 942B(2)
Wilsons Advisory and Stockbroking Limited (fa) of the Corporations Act
ABN 68 010 529 665 Wilsons Advisory and Stockbroking Limited (ABN 68 010 529
AFS Licence 238375 665) (AFSL 238375) (“Wilsons”, “we”, “us”, or “our”) and its
representatives are not independent, impartial or unbiased (which
Registered office are restricted words or expressions under the Corporations Act) in
Level 30, Waterfront Place, relation to the provision of personal advice to retail clients because
1 Eagle Street, Wilsons, its representatives and its associates and affiliates may
Brisbane, QLD, 4000 receive monetary benefits in connection with that advice.
Website For further information regarding how Wilsons’ representatives
www.wilsonsadvisory.com.au are remunerated, please refer to the section titled Remuneration,
Commission and other Benefits, and if you are a retail MDA client
Phone with Wilsons, please also read the section, ‘Adviser remuneration’,
1300 655 015 under Schedule 2 Private Portfolio.
Effective from 1 July 2021 It is important to understand that disclosing our lack of
independence and detailing our remuneration structure does
not reduce our obligation to act in your best interests. If you
are a retail client and receiving personal advice from a Wilsons
representative, we have a duty to act in your best interests when
providing this advice, prioritise your interests and are obliged to
provide you with appropriate advice.
2 1 July 2021The Purpose of this
Financial Services Guide
This Financial Services Guide (FSG) Statement of Advice (SoA) How to contact us
is issued by Wilsons Advisory and
We will provide you with an SoA if you You may contact us and find out more
Stockbroking Limited (ABN 68 010 529
are a retail client and we give you about us in the following ways:
665) (AFSL 238375) (“Wilsons”, “we”,
personal advice which takes into account
“us”, or “our”). It is aimed at assisting our
your personal circumstances, financial Mail: Wilsons Advisory and
retail clients to decide whether to use any
needs, goals and objectives. The SoA Stockbroking Limited,
of the services that we offer. It provides
will contain: GPO Box 240, Brisbane, QLD,
important information about:
4001
• a summary of your personal
• who we are and how to contact us
information Phone: 1300 655 015
• the products and services we offer
• the scope of our advice to you, the
• our associations and relationships basis on which our advice is given Website: www.wilsonsadvisory.com.au
with other entities and why it is appropriate for you
• information about the remuneration • information about any fees and
that we and your adviser may receive commissions we receive, and
• potential conflicts of interest • information about any associations
• our internal and external dispute we have
resolution procedures and how you
can access them We may not provide you with a SoA
where we only provide you with general
• our fees and charges
advice or where we have previously
Some of our advisers are authorised given you a SoA and your relevant
representatives who act on our behalf personal circumstances have not changed
to provide authorised financial services. significantly.
Wilsons is responsible for the financial
services provided by our authorised Record of Advice (RoA)
representatives. A RoA will be retained by us, however
you may request a copy, either orally
Other documents you may receive or in writing, within seven years of the
from us provision of the advice.
If you choose to use certain financial
products or services, you may receive Giving us instructions
other important documents from us such You may provide us with instructions by
as those referred to below. letter, email, telephone or other means
agreed with us.
Product Disclosure Statement (PDS)
A PDS is a document that describes a
financial product, its key features and the
benefits, fees and risks associated with
it. We will provide you with a PDS if we
recommend certain financial products to
you. This document should help you make
an informed decision about whether or not
to acquire the financial product.
3 1 July 2021Services and Products
Wilsons Advisory and Stockbroking Wilsons Advisory and Stockbroking Wilsons and its advisers are authorised to
Limited, Wilsons Administration Services Limited (“Wilsons”) is also registered provide financial product advice on and to
Pty Ltd (ABN 14 080 226 651) and with the Tax Practitioners Board as a deal in a range of financial products and
Wilsons Corporate Finance Limited (ABN Company Registered Tax (Financial) services including:
65 057 547 323) (AFSL 238383) are Adviser. Based on the information
wholly owned subsidiaries of Wilsons provided by you, Wilsons and its advisers • Domestic and International Securities
Operating Company Pty Ltd (ABN 94 may consider the tax consequences • Government Debentures, stocks or
603 546 194). that relate directly to the financial advice bonds
being provided to you. • Investor Directed Portfolio Services
Wilsons Operating Company Pty Ltd
is owned 100% by Wilsons Holdings However, Wilsons is not a Company • Managed Investment Schemes
Company Pty Limited (ABN 63 605 Registered Tax Agent and consequently • Managed Discretionary Accounts
696 259). this advice will not include an assessment (MDA)
of your overall tax position. As such, we • Margin Lending Services
Wilsons Holdings Company Pty Ltd strongly recommend you review this • Retirement Savings Accounts
is an unlisted entity with shareholders advice with a Registered Tax Agent for
made up of Craigs Investment Partners • Superannuation
the purpose of completing tax returns.
Limited (New Zealand Company Number • SMSF
447159) and Wilsons Staff Company Wilsons and its advisers may • Life Insurance
Limited. recommend that you invest in products
issued by Wilsons Corporate Finance Wilsons and its advisers are also
(ABN 42 605 747 573) an entity owned Limited, which provides corporate authorised to provide a range of related
by employees of Wilsons Holdings advisory and equity capital markets financial planning services including:
Company Pty Limited. services. Wilsons and its advisers may
• Portfolio Management and
recommend that you participate in
Wilsons Advisory and Stockbroking Investment Advice
capital raisings that are managed by
Limited:
Wilsons Corporate Finance Limited. • Cash Flow Management
• has an Australian Financial Services • Debt Management
License (AFSL No. 238375); Service and Products • Investment Structuring
• is an ASX Market Participant; • Superannuation
• is a Chi-X Market Participant; Wilsons and its advisers are authorised • Retirement Planning
• is an ASX Settlement Account under Wilsons’ AFSL to offer the
• Life Insurance
Participant of the ASX Limited; and following financial services:
• Estate Planning
• is a Principal Member of the • provide financial product advice
Stockbrokers Association • deal in financial products; and
of Australia.
• provide a custodian or
depository service.
4 1 July 2021Our advisers are given express Please refer to your adviser for
authorisation by us to provide financial more information.
advice and services. However, your
adviser may only be authorised to provide
advice to you in some of the above areas.
You may be referred to another Wilsons
adviser if you are seeking advice in
relation to specialised products.
Admin &
Packaged services Service Description Trading Advisory MDA Service
reporting
Private Account A trading account with access to: Investment
Advisers who can assist with all aspects of
structuring equity portfolios including buying and
selling shares; and administration and reporting
services, if required.
Wrap Services Wilsons’ Investment Wrap and Superannuation
Wrap can be used to build investment and
retirement solutions tailored to our client’s needs
Investment Wrap through access to a broad range of managed
portfolios, managed funds, term deposits, cash,
Australian and international shares.
Superannuation Wrap
Investment Partner Investment Partner is our ‘do it with me’ service
designed for clients who want to make
investment decisions in consultation with their
own dedicated advisor.
Private Portfolio (MDA) Private Portfolio (MDA) is our ‘do it for me’ service
designed for clients who want a dedicated advisory
team managing all aspects of their investments. This
includes everything from ongoing portfolio review
and management, to administration, paperwork and
reporting.
Service applies Optional service Service not included
For further information on the services provided and the relevant fees please refer to Schedule 1: Service and Fees and
Schedule 2: Wilsons Private Portfolio (MDA) Service.
5 1 July 2021Remuneration, Commission
and other Benefits
Adviser remuneration • one-off payments at the time you If you initiate an increase to your cover,
invest and which are paid to us from Wilsons may receive initial and ongoing
Wilsons receives all brokerage,
the amount you invest; commissions on the increase to your
commission and fees in the first instance
• ongoing payments, known as trail policy cost. The ongoing commission on
and, depending on the service provided,
commissions, which we receive for a client initiated increase is only paid in
it will pass on a portion of such payments
the period that you hold the financial respect of the period that starts from the
to your adviser. Advisers may also receive
product; first anniversary of the increase.
a salary, or a salary and a discretionary
bonus. Advisers receive 0–60% of all • interest, at prevailing bank deposit If the initial commission is equal to the
fees and charges paid by their clients rates, on balances held in our trust ongoing commissions (as a percentage
depending on the level of salary, their account; or of your policy cost), Wilsons may receive
position, the aggregate revenue that they • Initial and ongoing commissions up to 140% (incl. GST) of your annual
earn for Wilsons, as well as a variety of from insurance providers. These policy cost. If the initial commission is
non-financial performance standards, commissions are paid to Wilsons by higher than the ongoing commissions, the
including customer engagement, the company that issues the product maximum commission that Wilsons may
compliance with internal policies and that Wilsons recommend to you and receive is set out below:
meeting educational and competency they are included in what you pay for
requirements. the product. The commissions vary
and are based on the policy cost,
Commissions and benefits which is the sum of the premiums
We may receive commissions or other you pay and may include other fees
benefits from some product issuers related to the product.
in relation to the provision of financial
The initial commission is paid in the first
services and advice. The amount of such
year by the product issuer to Wilsons.
commission varies from one product
Ongoing commissions are payments paid
issuer to another and is disclosed for most
by product issuers to Wilsons in the years
financial products in the PDS relevant to
after the first year. These commissions
the product. They are typically received
may be passed onto the adviser.
either as:
Initial commission Ongoing commission pa
Date a new product is issued (% of annual policy cost or (% of annual policy cost or
increase including GST) increase including GST)
Before 1 January 2018 or before 1 April 2018 when the
0 - 140% 0 - 38.5%
application was received prior to 1 January 2018
1 January 2018 - 31 December 2018* 0 - 80% 0 - 20%
1 January 2019 - 31 December 2019* 0 - 70% 0 - 20%
From 1 January 2020* 0 - 60% 0 - 20%
* Wilsons may receive the pre 1 January 2018 commission rates above from the product issuer if:
• your policy was issued before 1 January 2018 and you exercise an option to establish new or additional cover under your policy after 1 January 2018; or
• your policy was issued before 1 January 2018 and is replaced after 1 January 2018 to correct an administrative error.
6 1 July 2021For example, if you have an existing policy Compensation and insurance
Mail: Australian Financial
with us that was issued in 2017, and in arrangements
Complaints Authority,
2018 you decide to increase the cover on
The Wilsons Group holds a professional GPO Box 3,
that policy with a corresponding increase
indemnity insurance policy that meets the Melbourne, VIC, 3001
in policy cost of $100 pa. Wilsons may
requirements of s912B of the Corporations
receive up to $140 (140% excl. GST) Online lodgement: ocf.afca.org.au
Act 2001 and also the requirements of the
as initial commission on the increase
Tax Practitioners Board.
and may pass up to $140 pa to us. The Email: info@afca.org.au
ongoing commission payable to Wilsons For claims, we may rely on and claim
in respect of this increased policy cost under the professional indemnity Phone: 1800 931 678
may be up to $38.50 (38.5% excl GST). insurance that the Wilsons Group holds.
Fax: 03 9613 6399
This insurance is between the Wilsons
If we recommend an insurance product
Group and the insurer and are intended
to you and it is issued on 2 April 2018.
to respond to civil liability resulting from Please note that AFCA will not begin to
The annual policy cost is $450. Wilsons
significant claims for compensation made consider the dispute unless you have first
may receive up to $360 (80% excl. GST)
against Wilsons for financial services and given us the opportunity to resolve the
as an initial commission and may pass
advice (including tax(financial) advice) dispute with you directly.
up to $216 (up to 60% excl. GST) to
provided by Wilsons’ advisers.
the Adviser. Assuming the policy cost
Timeframe for complaints handling
stays the same each year, Wilsons may
receive up to $90 pa (20% excl. GST) as Complaints Procedure Wilsons will provide an acknowledgment
an ongoing commission and may pass within 24 hours of receipt (or the
up to $54 pa (up to 60% excl. GST) to If you are dissatisfied with the service following business day) and will
the Adviser. or advice you receive from us, you are generally provide a response within 30
entitled to make a complaint. We have calendar days.
We may receive fees, commissions or established an internal dispute resolution
benefits from other members of the procedure (which complies with the
Wilsons’ group, third party service standards and requirements mandated by
providers and external product issuers. ASIC) to ensure all complaints are dealt
This may include selling commissions with properly.
when our clients participate in initial
public offerings or secondary capital To assist us in addressing your complaint,
raisings. We will disclose any such fees please gather all the facts and any
and obtain your consent where required. documents you wish to present, think
about the questions you want answered
We will advise you about any and decide how you would like us to
commissions, fees or benefits that we resolve the complaint. Please then:
receive, where possible, in dollar amounts
prior to the relevant transaction. We will Contact your adviser to make them aware
provide this information either in a SoA, of your complaint. A quick call is all that is
where a SoA is issued, or verbally. required to resolve most issues.
We may also receive a benefit from • If your complaint is not satisfactorily
preferred suppliers who may sponsor resolved within the timeframe that
Wilsons’ conferences and contribute to is agreed between you and your
marketing material from time to time, as adviser, please put your complaint in
well as from third parties such as financial writing addressed to:
planners or accountants who refer clients Dispute Resolution Officer,
to us. This will not increase the fees you Wilsons Advisory and
pay to us. Stockbroking Limited,
GPO Box 240 Brisbane QLD
You may request details of any 4001 or by email to compliance@
remuneration, commission or benefits wilsonsadvisory.com.au.
payable to us in relation to financial • The Dispute Resolution Officer will
services that may be provided to you endeavour to resolve the situation to
within a reasonable time of receiving this the satisfaction of all parties.
FSG.
• If you are still not satisfied with the
resolution of any complaint, you may
be eligible to refer the complaint to
The Australian Financial Complaints
Authority (AFCA) of which we are a
member:
7 1 July 2021Privacy Statement Authorised Representatives
Wilsons is committed to ensuring the Distribution of this FSG by its Authorised The Corporate Authorised Representative
confidentiality and security of your Representatives (AR) has been Dream Weavers Pty Ltd (ABN 32 610
personal information. Our Privacy Policy, authorised by Wilsons Advisory and 273 722)
which details our handling of information, Stockbroking Limited. (CAR No. 001241612) remunerates the
is available upon request or by accessing following Authorised Representatives:
our website www.wilsonsadvisory.com.au The Corporate Authorised Representative
(CAR)Rubicon Nominees Pty Ltd (ABN Nathan Spencer (AR No. 001000362)
84 009 833 596)
Best Execution (CAR No. 000379528) Shane Coster (AR No. 001241614)
Arrangements
C/o Wilsons Advisory and Stockbroking Susan Harrison (AR No. 001000324)
Limited Level 30, Waterfront Place,
Our Best Execution Arrangements
1 Eagle Street, Brisbane, QLD, 4000 Donna Picton (AR No. 000268334)
document explains how we handle
and execute your orders, as required The Corporate Authorised Representative
under the ASIC Market Integrity Rules C/o Care of Wilsons Advisory and
Arena Cashel Pty Ltd (ABN 42 606 142
(Competition in Exchange Markets) 2011 330) (CAR No. 001234388), remunerates Stockbroking Limited
and is available upon request or the following Authorised Representatives: 5/9 Bideford Street,
by accessing our website Torquary, QLD, 4655
www.wilsonsadvisory.com.au Warwick Foot (AR No. 001234391)
Australian Securities & Investments Anthony Bowden (AR No. 001236207) The Corporate Authorised Representative
Commission (ASIC) Relief Oracle Blvd Capital Pty Ltd (ABN 54 609
Luke McCulkin (AR No. 001256409) 927 675)
This FSG complies with the conditions
(CAR No. 001261739) remunerates the
of relief in ASIC class order CO 12/417, Jake Beazley (AR No. 001237367 following Authorised Representatives:
relating to the information to be included
in an FSG when it is delivered to a client
after the provision of a financial service. C/o Wilsons Advisory and Stockbroking Charles Thomasson (AR No. 001000375)
The information contained in the FSG Limited
need only be up-to-date as at the time Suite 1, 57 The Esplanade, Matthew Clayworth (AR No. 001000298)
the earlier financial service was given to a Maroochydore, QLD, 4558
retail client. Todd Cole (AR No. 000321974)
Patrick Reeves (AR No. 001003698)
C/o Wilsons Advisory and
Stockbroking Limited
Suite S224, L2 Oracle South,
17 Elizabeth Avenue,
Broadbeach, QLD, 4218
The Corporate Authorised Representative
Fortis Private Pty Ltd (ABN 33 647 000
379) CAR No. (001285297),
remunerates the following Authorised
Representative:
Tim Anderson (AR No. 000317673)
Richard Taylor (AR No. 001005656)
C/o Wilsons Advisory and
Stockbroking Limited
Unit 8, 9 The Causeway
Kingston ACT 2604
8 1 July 2021Schedule 1
Services and Fees
We may charge brokerage, commission agreement you reach with your adviser. Wilsons has arrangements with various
or a fee for the services and products If you are charged fees that differ from third parties to provide financial services
we provide. We will disclose any fees, the Standard Fees then such fees will be to our clients. The fees and charges
commissions or other benefits that we discussed and agreed with your adviser. relating to these services are disclosed
receive in a relevant advice document Please also note that the Standard Fees in the relevant third parties’ disclosure
where we provide you with personal may be updated from time to time, and documentation relating to those services.
advice, or where a SoA is not provided, that such updates will not impact the fees
either in writing or orally. paid by existing clients unless agreed These disclosure documents are available
with the relevant adviser. on the Wilsons website at
The fee information, figures, and www.wilsonsadvisory.com.au/disclosures
percentage ranges disclosed in Schedule To the extent that the amounts of any
1: Services and Fees (the ‘Standard Fees’) fees or charges are not disclosed in this
represent our default charges and are FSG, you may request particulars of such
for standard services only. You may be fees and charges from your adviser at any
charged differently based on the actual time before the relevant transaction or
service or advice you receive, or the service is entered into.
Wilsons Packaged Services
Note: All prices quoted are GST inclusive unless otherwise stated. Fees are calculated and payable monthly. Contact your adviser for more fee information.
Private Wrap Investment Private
Date a new product is issued
account services partner portfolio (MDA)
Trading services
Trading - Domestic
Trading - International
Trading - Managed funds
Trading - Derivatives
Admin and reporting services
Reporting and administration services
Termination services
Advisory services
Initial personal advice
Ongoing advice
Advice implementation
Performance plus
Wilsons managed portfolio
Service applies Optional service Service not included
9 1 July 2021Services and Fee Table * Please note this table refers to our default fees.
Service Fee type Fee
Trading services
Domestic Brokerage is a transaction based The standard minimum charge applied is $132.00 including GST.
securities trading fee that will be charged for trading Brokerage is calculated as a percentage of the transaction value, up to 2.75% p.a.
in any financial products.
The brokerage payable will be quoted on your contract note.
Under certain circumstances you may also be charged clearing fees, interest, and
administrative or related transaction costs, such as off market transfer fees.
International International Brokerage is a If you are trading internationally through the Wilsons Private Portfolio or Wilsons
securities trading transaction based fee that will Investment Partner services this fee will be charged as a flat fee that will vary based
be charged for trading in any on the currency you are trading in and the prevailing exchange rate.
international financial products in
the relevant currency, converted If you are not trading through the Wilsons Private Portfolio or Wilsons Investment
back to Australian Dollars at Partner services, this fee will be charged as a percentage of transaction value in the
the time of the transaction and relevant currency and agreed with your adviser at the time you place the relevant
charged to the client in AUD. order.
The brokerage payable will be quoted on your contract note.
Under certain circumstances you may also be charged clearing fees, stamp
duty, International market fees such as transfer-based levies and taxes, interest,
administrative costs or related transaction costs, such as off market transfer fees. The
amount of these additional fees may not be known at the time that the transaction is
entered into.
Foreign exchange A Foreign exchange conversion This fee will be charged by a third party and a portion of this fee of up to 1% of the
conversions fee is a percentage based fee that conversion amount may be charged on our behalf.
will be charged to convert foreign
currency to Australian Dollars for
each transaction.
Spot FX fee Spot Fx Fee is a transaction based If you choose to trade Spot FX with Wilsons, we may earn an income of up to 2.5%
fee that will be charged for trading of the overall transaction value from the ‘spread’ that we apply to such transactions.
in any financial products. The spread is the difference between the rate at which we buy and sell the relevant
currency. The income that we earn off any given Spot FX transaction with you is
dependent on the difference between the conversion rate that is applied to your
transaction, and the rate that we achieve with our wholesale supplier. The additional
spread of up to 2.5% of the overall transaction value is incorporated into the rate
quoted to you and is not an additional charge or fee payable by you.
Derivatives Please refer to the Product Disclosure Statement (PDS) for further information.
Managed funds Please refer to the fund manager PDS for the relevant fee information.
10 1 July 2021Service Fee type Fee
Administration and reporting services
Account A fee may be charged with respect The standard minimum charge is $250.00.
opening fee to administration for account
opening.
Ongoing A fee may be charged with respect This fee is asset based, calculated as a percentage of funds invested or an annual flat
administration and to platform administration and fee depending on which Wilsons service you receive.
reporting services reporting services.
On borroweds fund a flat fee will be charged.
Termination services The termination fee covers the Up to 3.3% p.a.
administrative time spent liaising
with the new provider to transfer
assets and close the account.
Tailored financial advice and implementation services
Before providing you with advice your advisor will prepare a Statement of Advice (SoA). The SoA sets out our initial and ongoing advice offering,
which includes the advice and services Wilsons will provide, as well as the frequency these will be delivered, how much it will cost, your payment
method and how the service may be terminated.
Ongoing The ongoing general advice fee The ongoing general advice fee is calculated based on the Net Portfolio Value at the
general advice covers the cost to review and end of each month and deducted the following month.
provide general advice on related
corporate actions to your portfolio. Up to 1.65% p.a.
This fee includes
account administration and
reporting services.
Initial personal advice The initial advice preparation Before providing you with personal advice we will discuss the initial advice
- advice preparation fee covers the cost of preparing preparation fee, what the advice will cover and how much it will cost. The Statement
your SoA. of Advice fee can be charged based on either hourly basis ($214.40 to $544.50 per
hour) or flat fee basis ($544.50 to $12,100 per personal advice plan).
Initial personal The initial advice implementation The advice implementation fee is asset based, calculated as a percentage on new
advice - advice fee covers the administrative funds invested, up to 3.3% p.a. Or as a flat fee agreed with you.
implementation time spent implementing the
recommended strategies and The advice implementation fee will be disclosed in your SoA.
products detailed in your SoA.
Ongoing personal The ongoing adviser service fee This fee is made up of minimum dollar value and an asset based fee calculated as a
advice - adviser covers the cost to review strategies percentage of funds invested, up to 2.2% p.a.
service fee and the products recommended
to you. An ongoing review helps The ongoing adviser service fee is calculated based on the Net Portfolio Value at the
ensure the advice we provide end of each month and deducted the following month.
remains appropriate as your
On the closing of an Investor’s account, the Fee will be calculated on the Net Portfolio
circumstances change.
Value at the date of closure. The Fee will be pro-rata and deducted the following
business day.
Ongoing The Wilsons managed portfolio The Managed Portfolio fee is asset based, calculated as a percentage on funds
Wilsons managed fee is an ongoing, asset based invested per portfolio, up to 1.02% p.a.
portfolio fee fee that may be charged on
any investments in the Wilsons
Managed Portfolio. This fee is
payable for each of the portfolios
invested.
Please Note: On a borrowed fund a flat fee rather than an asset based fee will be charged.
11 1 July 2021Service Fee type Fee
Ongoing If an Investor selects the Performance Plus Fee Option, an additional Performance Fee is payable.
performance fee
Performance Fees are calculated and accrue on a monthly basis and are charged Half Yearly, being deducted from the
Investor’s Portfolio at the end of the Half Year (usually shortly after 30 June and 31 December unless the Investor’s
account is closed earlier).
The Performance Fee is calculated as 22%* of the Portfolio outperformance. Portfolio outperformance is the amount by
which the portfolio’s rate of return exceeds the benchmark rate, multiplied by the portfolio’s average capital base over the
half year.
How is the Benchmark calculated?
Investors who have selected the Performance Plus Fee Option have a choice of benchmarks against which their Portfolio
can be compared.
• Composite benchmark
A Composite Benchmark is dependent on the asset types (e.g. international equities) contained in the Portfolio. The
weighting of each index is the same as the asset allocation set out in the selected Wilsons Investment
Portfolio Type.
• S&P/ASX All ordinaries accumulation Index
S&P/ASX All Ordinaries represents the 500 largest companies in the Australian equities market. Index constituents
are drawn from eligible companies listed on the Australian Securities Exchange.
A high water mark is applied to the Performance fee to ensure that any negative performance (relative to the benchmark)
is recouped before another Performance Fee is charged.
Performance fee worked example1 Half year 1 Half year 2 Half year 3
Portfolio value at start of period2 $ 900,000 $1,101,600 $1,035,504
Portfolio half-year performance2 24.00% -5.00% -20.00%
Benchmark half-year performance 16.00% -10.00% -5.00%
Portfolio value at end of period $1,116,000 $1,046,520 $828,403
Benchmark value at end of period $1,044,000 $991,440 $983,729
Excess return $72,000 $55,080 -$155,326
Performance Fee Total* $14,580 $12,118 -$
* Fees in this example are including GST. 1 Deposits and withdrawals are taken into account when calculating the performance fees. The above
worked example does not include deposits or withdrawals. 2 Portfolio Performance is calculated using an industry standard time-weighted
methodology called the ‘Modified Deitz’ method. Contact your adviser for further details.
Fees Charged by External Providers
Custody fee Please refer to the relevant Product Disclosure Document for further information.
Platform fee Please refer to the relevant Product Disclosure Document for further information.
12 1 July 2021Schedule 2
Private Portfolio
We offer Managed Discretionary Significant risks associated with MDA • Basis risk: This risk relates to listed
Account (MDA) services to clients where investments which trade at a price
Before entering into an MDA agreement
is appropriate to do so, these clients greater or less than the value of
with us you should consider the
who must enter into a separate MDA their underlying assets. Basis risk
risks associated with MDA services,
agreement with us. can cause a gain or loss of value for
which include:
investors depending on the price at
Before entering into an MDA service which the investments are traded
• Investment risk: The risk that you
arrangement with us, you must first at the time they are bought or sold.
may lose all or part of the money
accept our Wilsons Private Portfolio & The potential effects of basis risk
you invest. This risk of loss is the
Private Portfolio High Conviction Terms become less significant in proportion
risk an investor accepts in order to
and Conditions (MDA Contract). An MDA to overall returns the longer that an
pursue potentially higher investment
Contract authorises your adviser to make investment is held.
returns rather than a more secure (or
investment decisions on discretion and
low risk) investment, such as a bank • Portfolio construction risk: We
to manage your portfolio in accordance
deposit. predominantly research and service
with a pre-agreed Investment Program.
• Market risk: The earnings and companies in the mid-cap sector of
The Investment Program is prepared
values of the assets within your the Australian equity market. Our
in accordance with the requirements in
MDA portfolio may be affected by research ideas are the primary source
Division 3 of Part 7.7 and Division 2 of
movements in interest rates, currency of Australian equity investment
Part 7.7A and the Investment Program
exchange rates, commodities, ideas in the investment selection
will include information about:
overall economic conditions (both process. Depending on your tactical
• the nature and scope of discretion domestic and international) and other asset allocation which is contained
that you authorise for your adviser factors that are beyond the control of within your Investment Program,
to act in accordance with the your adviser. the Australian equity portion of your
Investment Program portfolio may be biased towards
• Asset class risk: Share markets rise
ASX listed companies outside of the
• any significant risks associated with and fall over time. The market value
ASX 100.
the MDA agreement and service of company shares and dividends
paid (if any), are dependent on • Gearing risk (only when you borrow
• the basis on which the MDA service
the sector in which the company to invest): Borrowing to invest
is appropriate for you
operates, the company’s profit can magnify your losses when the
• statutory warnings about the market declines. If your outstanding
outlook, the performance of company
limitations that may apply to the loan balance exceeds the security
management and changes in the
MDA service value of your investments beyond
economy. Share prices are generally
• the requirement that your adviser more volatile than property, bonds the buffer limit you will need to meet
provide an annual review of your or cash. As a consequence of these a margin call. The interest rate on
Investment Program risks, an MDA client should be your margin loan may rise or fall from
• any other information that may prepared for falls in the market and time to time.
influence your decision to use the the possibility of a negative return on
MDA service. Please note that we do not guarantee the
their investment.
maintenance of capital or a specific rate of
Wilsons will be responsible for reviewing • Taxation risk: Capital gains tax return on any MDA portfolio or any other
the Investment Program. MDA clients may be payable on any investment products.
may give us specific instructions about assets sold. We do not provide
their investment preferences, certain comprehensive taxation advice and
financial products or instructions in you should discuss any taxation
relation to corporate actions (e.g. proxy considerations that may arise as a
voting). We will only be obliged to result of your investments with your
comply with directions that we agree to tax adviser. There is also the risk that
in writing. tax legislation may change which may
adversely impact your investment.
13 1 July 2021Non-limited recourse products We will provide our MDA clients with You may contact HUB24 in the
and facilities quarterly reports and an annual report following ways:
about their investments.
The non-limited recourse products or
Mail: HUB24 Custodial
facilities can include loans used to acquire
Outsourcing and external MDA Services Limited,
financial products (including margin
custodian GPO Box 529,
loans), and certain types
Wilsons will not provide custodial or Sydney, NSW, 2001
of derivatives.
depository services relation to our MDA
Investing into non-limited recourse Phone: 1300 854 994
services for your portfolio assets.
products or facilities can significantly
For Wilsons Super Wrap and HUB24 Email: admin@hub24.com.au
increase your investment risk. Specifically,
a non-limited recourse product or facility products, Wilsons outsources its custody
Fax: 11300 781 689
imposes a legal obligation on you to pay service to HUB24 Custodial Services
an amount to another person or financial Limited (ABN 94 073 633 664) (AFSL
institution in the event of the occurrence 239122) (HUB24) You may contact FinClear in the
or non-occurrence of something where following ways:
the rights of the other person or financial In relation to international securities
held in your MDA portfolio, your assets Mail: FinClear Services Pty Ltd ,
institution are not limited to any property
will be held on your behalf by FinClear GPO Box 5343
or asset that you have paid or set aside as
Services Pty Ltd (ABN 60 136 184 962) Sydney, NSW, 2001
security for the agreement.
(AFSL 338 264) (FinClear) as nominee.
For example, if you use $50,000 of your FinClear will also arrange for any
own money and borrow $450,000 via international securities transactions to be Phone: 02 8039 6000
a margin loan to invest in $500,000 in executed by international brokers on your
shares - if your shares suffer a significant behalf. However, you will remain the Fax: 02 8999 4099
decrease in value to $200,000 and you beneficial owner of all assets that are held
are required to meet a margin call from by FinClear and upon termination of an We offer various fee options for our
the lender immediately to fully repay MDA service any associated assets will MDA services. Please see the Schedule
your margin loan, you may be forced to be transferred back into your name. of Fees for more information, as well
sell $250,000 of your other assets and as information on associated advisory
property to make up the shortfall in value Wilsons remains responsible for any fees and recommended minimum
due to the decrease in value of your outsourced functions. Wilsons conducts investment amounts.
shares which have been held as security due diligence to ensure due care is taken
for the margin loan. when engaging an external provider. This FSG complies with the conditions
Further, Wilsons monitors the ongoing of ASIC’s relief under ASIC Corporations
Because this is a non-limited recourse performance of service providers through (Managed Discretionary Account
product or facility, you should understand its operations function and governance Services) Instrument 2016/968.
that you can lose an amount greater than structures.
the current value of your investment, in Wilsons managed portfolios
which case you can be forced to dispose
A Wilsons Managed Portfolio is a
of the other assets and property you own
model portfolio that is managed by the
(including your family home if it is in your
Wilsons Investment Strategy Group and
name) to repay your loan.
implemented through the Wilsons Private
The level of leverage and risk in terms Portfolio Managed Discretionary Account
of an MDA that could be offered to service. A Wilsons Managed Portfolio is
you is unknown at this point because subject to the same terms and conditions
the requisite due diligence of your as all Managed Discretionary Account
circumstances, needs and objectives has services provided by Wilsons, and is
not been conducted and are not known, subject to an additional fee as set out in
and hence the underlying product holding the Schedule 1: Services and Fees.
of your MDA is also unknown. However,
where advice is provided to you in the
form of the Investment Program – SOA,
which involves non-limited recourse
products and facilities, then the level of
leverage and risk related to the non-
limited recourse products and facilities
will be fully disclosed to you in writing,
in order for you to be able to make an
informed decision as to whether to
proceed with the MDA.
14 1 July 2021Managed Discretionary
DID YOU KNOW? Your employer may be able to negotiate to pay
Account Fees and lower administration fees. Ask the fund or your
Small differences in both investment
Other Costs performance and fees and costs can have a
financial adviser.
substantial impact on your long term returns.
TO FIND OUT MORE
This document shows fees and other costs
that you may be charged. These fees and For example, total annual fees and costs of If you would like to find out more, or see
costs may be deducted 2% of your account balance rather than 1% the impact of the fees based on your own
from your investment, from the returns on could reduce your final return by up to 20% circumstances, the Australian Securities and
your investment or from the assets in your over a 30 year period Investments Commission (ASIC) website
account. (for example, reduce it from $100,000 (www.moneysmart.gov.au) has a managed
to $80,000). investment fee calculator to help you check out
You should read all the information about different fee options.
fees and costs because it is important to You should consider whether features such
understand their impact as superior investment performance or the
on your investment. provision of better member services justify
higher fees and costs.
Fees and costs for particular investment
options are set out in Schedule 1: Service and
Fees.
Type of fee or cost1 Amount How and when paid
Fees when your money moves In or out of the managed investment product
Establishment fee2 This is the Placement Fee referred This fee is deducted from your account on the commencement of your Wilsons Private Portfolio or
- The fee to open to in Schedule 1: Service and Fees Wilsons Private Portfolio High Conviction service.
your investment of the FSG
The amount of the Placement Fee can be negotiated (Negotiated Fee).3
Contribution fee Nil Not applicable
- The fee on each amount contributed to
your investment
Withdrawal fee Nil Not applicable
- The fee on each amount you take out
of your investment
Exit fee2 This is the Termination Fee This fee is deducted from your account on the termination of your Wilsons Private Portfolio or
- The fee to close your investment referred to in Schedule 1: Service Wilsons Private Portfolio High Conviction service. The amount of the Termination Fee can be
and Fees of the FSG negotiated (Negotiated Fee).3
Management costs
The fees and costs for managing your This is the Investment Advice and This fee is calculated based on the Net Portfolio Value at the end of each month and deducted the
investment2,4 Administration Fee referred in following month.
Schedule 1: Service and Fees of
The amount you pay for specific the FSG. The amount of the Investment Advice fee can be negotiated (Negotiated Fee).3
investment options is shown in
Schedule 1: Service and Fees
Indirect costs: External managed funds Varies depending on the Managed Their fees are deducted from the managed fund unit price by the product issuer. This fee is not
fees5 Fund. Please refer to the fund directly paid by you, but does impact the portfolio performance.
manager PDS for fee information
Performance fees: Amounts deducted The performance fee for your If you select the Performance Plus Fee Option, an additional performance fee is payable for the
from your investment in relation to the investment, where applicable, portfolio outperformance relative to the benchmark.
performance of your investment. is disclosed in the relevant
investment program.
Service fees
Switching fee Nil Not Applicable.
The fee for changing
investment options
1. This table does not include other amounts that may be payable. The amount you pay for specific investment options is shown in Schedule 1: Service and Fees. Please also see “Additional Explanation of Fees and
Costs”
2. This fee includes an amount payable to an adviser. (“Adviser remuneration” under the heading “Additional Explanation of Fees and Costs”.)
3. Please see “Negotiated fees” under the heading “Additional Explanation of Fees and Costs”.
4. Please see “Investment Advice and Administration Fee” under the heading “Additional Explanation of Fees and Costs”.
5. Please see “Indirect Costs: External Managed funds” under the heading “Additional Explanation of Fees and Costs”
15 1 July 2021Additional Explanation
of Fees and Costs
Investment advice and Investment Advice and Administration
administration fee Fee will be pro-rata to this closure date
and deducted from the Investor’s Portfolio
The Investment Advice and
the following business day.
Administration Fee is calculated based
on the Net Portfolio Value at the end
Example of annual fees and costs
of each month and deducted the
following month. This table gives an example of how the
fees and costs in the Wilsons Private
On the closing of an Investor’s Portfolio High Conviction option affect
account, the Investment Advice and your investment over a 1 year period.
Administration Fee will be calculated You should use this table to compare this
on the Net Portfolio Value at the closure product with other MDA Services.
date as indicated by the Investor. The
Example: Wilsons Private Portfolio High Conviction Balance of $50,000 with a contribution of $5,000 during year
Contribution fees Nil For every additional $5,000 you put in, you will be charged between $0.
PLUS Management costs Up to 1.82% And, for every $50,000 you have in the High Conviction investment option you
will be charged $910 each year.
EQUALS Cost of balanced If you had an investment of $50,000 at the beginning of the year and you put in
investment option an additional $5,000 during that year, you would be charged fees of from:
$910 - $1,001*
What it costs you will depend on the investment option you choose and the fees
you negotiate.
Additional fees may apply:
Placement of between 0 and 3.3% of your total account balance (between $0 and $1 650 for every $50 000 you initially invest).
And, if you leave the MDA Service, you may also be charged exit fees of between 0 and 3.3% of your total account balance
(between $0 and $1 650 for every $50 000 you withdraw).
16 1 July 2021Adviser remuneration Transactional and
Wilsons receives all brokerage, Operational Costs
commission and fees in the first instance
and, depending on the service provided,
Wilsons charges additional transactional
it will pass on a portion of such payments
and operational costs such as brokerage
to your adviser. Advisers may also receive
and administration fees (as detailed in
a salary, or a salary and a discretionary
Schedule 1: Service and Fees).
bonus. Advisers receive 0 – 60% of all
fees and charges generated from their
clients depending on the level of salary,
Indirect Costs:
their position, the aggregate revenue External Managed Funds
that they earn for Wilsons, and their
compliance with a variety of non-financial If your adviser chooses to invest in
performance standards including external managed funds, each of those
customer engagement, compliance with funds will charge a fee which will be
internal policies and meeting educational deducted from that investment. The
and competency requirements. amount of these fees depends on
which external managed funds (if any)
Financial planning service fee your adviser chooses to invest in on
A Financial Planning Service Fee may your behalf.
be payable if the Investor chooses to
have ongoing financial planning advice Additional Fees
provided by a Wilsons Adviser or
Financial Planner. The Financial Planning An additional fee may be charged where
Service Fee will be calculated based capital gains tax records have to be
on the Net Portfolio Value at the end of reconstructed. The amount of any such
each month and paid from the Investor’s fee will be advised to the Investor prior to
Portfolio monthly. any action being taken.
Negotiated fees
Negotiated Fees may be negotiated
and are agreed with your adviser
before entering into an MDA service
arrangement with Wilsons.
Any Further Questions?
Please talk to your Wilsons Adviser
17 1 July 2021Capital Cities
Brisbane Melbourne Sydney
Mail: GPO Box 240, Brisbane QLD Mail: Level 12, Mail: Level 32, Governor
4001 8 Exhibition Street, Macquarie Tower,
Melbourne, VIC, 3000 1 Farrer Place,
Sydney, NSW, 2000
Phone: (07) 3212 1333 Phone: (03) 9640 388 Phone: (07) 3212 1333
Canberra
Mail: PO Box 3253 Manuka
ACT 2603
Phone: (02) 8247 6650
Regional
Toowoomba Gold Coast Hervey Bay
Mail: PO Box 1439, Toowoomba, Mail: Suite S224, Mail: 5/9 Bideford Street,
QLD 4350 Level 2 Oracle South, Torquay, QLD, 4655
17 Elizabeth Avenue,
Broadbeach, QLD, 4218
Phone: (07) 5509 5505 Phone: (07) 5509 5500 Phone: (07) 4197 1600
Sunshine Coast
Mail: Suite 1, 57 The Esplanade,
Maroochydore, QLD, 4558
Phone: (07) 5451 4600
This document has been prepared by Wilsons Advisory and Stockbroking Limited (ACN 010 529 665, AFSL 238375) (“Wilsons”).
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