AMP Life Investment options fees and costs · 2020. 10. 8. · AMPBalancedGrowth 1.49 (v) 0.18 1.67...

Investment option fees and costs

Contents

2Investment option fees and costs

12Explanation of costs

14Changes to investment option fees and costs

Accelerator Savings PlanAMP Capital Secure Deferred Annuity (FSDN)AMP Children's Investment Linked Insurance Bond(ULNSP)AMP Children's Investment Plan (ULEN)AMP Children's Portfolio Plan (ULC)AMP Investment Account Deferred Annuity (FSD)AMP Investment Account Insurance Bond (FSB andFSBN)AMP Investment Linked Children's Plan (ULN)AMP Investment Linked Deferred Annuity (ULK andULKN)AMP Investment Linked Plan (ULA and ULJ)AMP Investment Linked Insurance Bond (ULAN andULASP)AMPMultiFund Flexible Income Plan – AllocatedAnnuity (ULMA and ULMAN)AMPMultiFund Rollover Investment Linked DeferredAnnuity (ULMD and ULMDN)AMPMultiFund Trustee Bond (ULMT)AMP Personal Achiever (ULTJ)AMP Personal Investment Plan (ULEJ)AMP Portfolio Plan (UL)

AMPAK (IAA)AMPAK Plan (IAF)AMP Protected Growth Deferred Annuity (SGN andSGDN)AMP Super Rollover Plan Investment Linked DeferredAnnuity (ULKR)Corporate Super Bond – Series 1Corporate Super Bond – Series 2Flexible Annuity PlanFlexible Security PlanFlexipol Plan (Ordinary)FutureGuardGoldline Savings and Protection PlanGuaranteed Investment BondManaged Investment PlanPersonal Investment BondProsperity BondProvider Protection and Savings PlanProvider Special Purpose PlanSecure Investment BondSuperGuardSuperGuard IISuperGuard ManagedSuperGuard Plus

Issued 5 March 2021AMP Life Limited has proudly served customers in Australia since 1849. AMP Limited ABN 49 079 354 519 has sold AMP Life to the Resolution LifeGroup whilst retaining a minority economic interest. AMP Limited has no day-to-day involvement in the management of AMP Life whose productsand services are not affiliated with or guaranteed by AMP Limited. “AMP”, “AMP Life” and any other AMP trade marks are used by AMP Life underlicence from AMP Limited.

AMP Life

Investment option fees and costsThis section details the fees and costs that are included in the unit price or crediting rate of the relevant investment option foreach product.

Fees and costs that are directly deducted from your account, including any additionalmanagement costs, are not included in thisdocument. Amanagement fee rebatemay also apply which will have the effect of reducing the investment optionmanagementfee. You should refer to your annual statement for details of any direct rebates and fees.

Costs are variable andmay bemore or less than the estimated amounts shownwhich are based on the known actual or estimatedcosts incurred for the last financial year.Where an investment option is new, orwas firstmade available during this or last financialyear, we have estimated the costs that currently apply. Past costs are not a reliable indicator of future costs.

Fees and costs applicable to each investment option are shown in the table below and are based on the balance held in theinvestment option.

Buy/Sellmargin(iv)

Transactioncostallowance(iii)

Management costs(i)Product/Investment option

Totalmanagementcosts

Indirect costsManagementfee(ii)

%% pa% pa% pa% pa

Accelerator Savings Plan

0.13/0.15n/a0.720.04(v)0.68Balanced

0.06/0.06n/a1.690.01(v)1.68Capital Guaranteed

0.00/0.00n/a0.640.020.62Cash

0.20/0.20n/a0.670.010.66Equity

0.06/0.06n/a1.690.01(v)1.68Fully Guaranteed

0.14/0.15n/a0.750.06(v)0.69Managed

0.10/0.10n/a0.850.18(v)0.67Property

AMP Capital Secure Deferred Annuity (FSDN)

n/an/a0.940.01(v)0.93AMP Capital Secure Deferred Annuity

AMP Children’s Investment Linked Insurance Bond(ULNSP)AMP Investment Linked Insurance Bond (ULAN andULASP)

0.20/0.20n/a1.520.011.51AMP Australian Share

0.18/0.18n/a1.610.07(v)1.54AMP Balanced Growth

n/an/a1.520.011.51AMP Capital Guaranteed Fixed Interest

n/an/a1.510.001.51AMP Cash Based

0.20/0.19n/a1.660.10(v)1.56AMP Diversified Share

0.20/0.20n/a1.730.031.70AMP International Share

0.16/0.17n/a1.640.08(v)1.56AMPModerate Growth

AMP Children’s Investment Plan (ULEN)AMP Personal Investment Plan (ULEJ)

0.41/0.26n/a1.580.071.51AMP Australian Property



2

Buy/Sellmargin(iv)





%% pa% pa% pa% pa






AMP Children’s Portfolio Plan (ULC)AMP Portfolio Plan (UL)

0.18/0.18n/a0.570.07(v)0.50Portfolio Plan

AMP Investment Account Deferred Annuity (FSD)

n/an/a0.940.01(v)0.93AMP Investment Account Deferred Annuity

AMP InvestmentAccount InsuranceBond (FSBandFSBN)

n/an/a0.770.02(v)0.75Insurance Bond

AMP Investment Linked Children’s Plan (ULN) (initialunits)AMP Investment LinkedPlan (ULAandULJ) (initial units)





AMP Investment Linked Children’s Plan (ULN)(investment units)AMP Investment Linked Plan (ULA andULJ) (investmentunits)





AMP Investment Linked Deferred Annuity (ULK andULKN)

0.23/0.23n/a1.590.06(v)1.53AMP All Growth





3

Buy/Sellmargin(iv)





%% pa% pa% pa% pa

0.13/0.17n/a1.630.07(v)1.56AMP Conservative

n/an/a1.510.03(v)1.48AMP Direct Property

0.13/0.18n/a1.600.05(v)1.55AMP Fixed Interest Plus


AMPMultiFundFlexible IncomePlan–AllocatedAnnuity(ULMA and ULMAN)

n/a+/- 0–0.402.040.002.04Alphinity Australian Share

n/a+/- 0–0.411.500.05(v)1.45AMP All Growth

n/a+/- 0–0.251.460.021.44AMP Australian Bond

n/a+/- 0–0.401.450.011.44AMP Australian Share

n/a+/- 0–0.121.360.011.35AMP Australian Share Index

n/a+/- 0–0.441.580.09(v)1.49AMP Balanced Growth

n/an/a1.450.011.44AMP Cash

n/a+/- 0–0.291.540.06(v)1.48AMP Conservative

n/a+/- 0–0.431.540.07(v)1.47AMP High Growth

n/a+/- 0–0.281.460.021.44AMP International Bond

n/a+/- 0–0.351.730.291.44AMP International Share

n/a+/- 0–0.501.440.001.44AMP Listed Property Trusts

n/a+/- 0–0.341.540.06(v)1.48AMPModerate Growth

n/a+/- 0–0.121.360.011.35Australian Share Index

n/a+/- 0–0.461.700.001.70BlackRock Global Bond

n/a+/- 0–0.362.100.022.08BlackRock Scientific Hedged International Share

n/a+/- 0–0.161.690.051.64Future Directions Australian Bond

n/a+/- 0–0.272.110.201.91Future Directions Balanced

n/a+/- 0–0.231.900.161.74Future Directions Conservative

n/a+/- 0–0.302.120.161.96Future Directions Growth

n/a+/- 0–0.322.190.152.04Future Directions High Growth

n/a+/- 0–0.281.760.021.74Future Directions International Bond

n/a+/- 0–0.272.010.171.84Future Directions Moderately Conservative

n/a+/- 0–0.161.540.001.54International Share Index

n/a+/- 0–0.241.880.001.88Ironbark Karara Australian Share

n/a+/- 0–0.581.710.021.69Macquarie Income Opportunities

n/a+/- 0–0.321.960.001.96Perennial Value Australian Share

4

Buy/Sellmargin(iv)





%% pa% pa% pa% pa

n/a+/- 0–0.342.060.002.06Perpetual Industrial Share

n/a+/- 0–0.502.090.002.09Schroder Australian Equities

n/a+/- 0–0.351.940.001.94Schroder Global Value

n/an/a1.450.011.44Secure Growth

n/a+/- 0–0.402.110.171.94Specialist Australian Share

n/a+/- 0–0.352.340.302.04Specialist International Share

n/a+/- 0–0.402.110.022.09Specialist Property and Infrastructure

n/a+/- 0–0.302.090.002.09Yarra Capital Management Australian Equities

n/a+/- 0–0.481.920.011.91Zurich American Century Global Growth

AMPMultiFund Rollover Deferred Annuity Plan (ULMDand ULMDN)









n/a+/- 0-0.301.590.05(v)1.54AMPModerate Growth




AMPMultiFund Trustee Bond (ULMT)



n/a+/- 0–0.591.800.20(v)1.60AMP Australian Property





n/a+/- 0–0.451.620.08(v)1.54AMP High Growth

5

Buy/Sellmargin(iv)





%% pa% pa% pa% pa



n/a+/- 0-0.301.590.05(v)1.54AMPModerate Growth




AMP Personal Achiever (ULTJ)







AMPAK (IAA)AMPAK Plan (IAF)

n/an/a0.770.02(v)0.75Investment Account Personal Investment (AMPAK)

AMP Protected Growth Deferred Annuity (SGD andSGDN)

n/an/a0.940.01(v)0.93AMP Protected Growth Deferred Annuity

AMP Super Rollover Plan Investment Linked DeferredAnnuity (ULKR)

n/an/a1.300.011.29Short Dated Fixed Interest

Corporate Super Bond – Series 1

0.20/0.20n/a1.490.011.48Australian Equities

0.00/0.00n/a0.760.02(v)0.74Cash

0.11/0.15n/a1.510.021.49Diversified Fixed Interest

0.06/0.06n/a1.660.011.65Guaranteed Plus

0.14/0.15n/a1.550.05(v)1.50Managed

0.10/0.10n/a2.260.11(v)2.15Property

0.11/0.12n/a1.560.07(v)1.49Property Biased

Corporate Super Bond – Series 2


0.06/0.06n/a1.860.011.85Guaranteed Plus

6

Buy/Sellmargin(iv)





%% pa% pa% pa% pa

0.14/0.15n/a1.750.05(v)1.70Managed

Flexible Annuity Plan (entry fee option and exit feeoption - mature)


0.00/0.00n/a0.870.02(v)0.85Cash

0.25/0.25n/a1.430.001.43Listed Property

0.13/0.14n/a1.580.04(v)1.54Managed

0.12/0.14n/a1.540.03(v)1.51Matched

0.15/0.14n/a1.900.03(v)1.87Multi-manager Balanced

0.17/0.14n/a1.880.02(v)1.86Multi-manager International Equities

0.11/0.10n/a1.820.07(v)1.75Multi-manager Secure


0.10/0.12n/a1.510.02(v)1.49Secure

Flexible Annuity Plan (exit fee option)

0.00/0.00n/a0.870.02(v)0.85Cash

0.25/0.25n/a1.430.001.43Listed Property

0.13/0.14n/a1.580.04(v)1.54Managed

0.12/0.14n/a1.540.03(v)1.51Matched


0.17/0.14n/a1.880.02(v)1.86Multi-manager International Equities



0.10/0.12n/a1.510.02(v)1.49Secure

Flexible Security Plan

0.00/0.00n/a1.640.021.62Cash

0.06/0.06n/a2.320.01(v)2.31Guaranteed

0.14/0.15n/a2.050.06(v)1.99Managed

Flexipol Plan (Ordinary)

0.06/0.06n/a1.470.01(v)1.46Guaranteed

7

Buy/Sellmargin(iv)





%% pa% pa% pa% pa

FutureGuard (entry fee option and exit fee option -mature)


0.00/0.00n/a0.760.02(v)0.74Cash


0.14/0.15n/a1.560.05(v)1.51Managed

0.13/0.15n/a1.510.031.48Matched




0.11/0.13n/a1.360.03(v)1.33Secure

FutureGuard (exit fee option)


0.00/0.00n/a0.760.02(v)0.74Cash


0.14/0.15n/a1.560.05(v)1.51Managed

0.13/0.15n/a1.510.031.48Matched




0.11/0.13n/a1.360.03(v)1.33Secure

Goldline Savings and Protection Plan

0.13/0.15n/a0.720.04(v)0.68Balanced


0.00/0.00n/a0.640.020.62Cash

0.20/0.20n/a0.670.010.66Equity

0.06/0.06n/a1.520.01(v)1.51Fully Guaranteed

0.14/0.15n/a0.750.06(v)0.69Managed

0.10/0.10n/a0.850.18(v)0.67Property

Guaranteed Investment Bond

0.06/0.06n/a1.780.01(v)1.77Guaranteed

8

Buy/Sellmargin(iv)





%% pa% pa% pa% pa

Guaranteed Savings Account

0.02/0.05n/a0.310.010.30GSA - Pension

0.02/0.05n/a0.310.010.30GSA - Superannuation

Managed Investment Plan


0.00/0.00n/a1.490.021.47Cash

0.06/0.06n/a1.780.01(v)1.77Guaranteed

0.09/0.09n/a1.940.021.92International Equities

0.14/0.15n/a2.060.06(v)2.00Managed


Personal Investment Bond


0.00/0.00n/a1.490.021.47Cash

0.06/0.06n/a1.780.01(v)1.77Guaranteed

0.06/0.06n/a1.650.01(v)1.64Guaranteed - AC&L

0.09/0.09n/a1.940.021.92International Equities

0.14/0.15n/a2.060.06(v)2.00Managed



Prosperity Bond (entry fee option and exit fee option –mature)


0.00/0.00n/a1.020.021.00Cash


0.14/0.15n/a1.330.06(v)1.27Managed

0.13/0.15n/a1.250.04(v)1.21Matched




0.11/0.13n/a1.190.04(v)1.15Secure

Prosperity Bond (exit fee option)


9

Buy/Sellmargin(iv)





%% pa% pa% pa% pa

0.00/0.00n/a1.020.021.00Cash


0.14/0.15n/a1.330.06(v)1.27Managed

0.13/0.15n/a1.250.04(v)1.21Matched




0.11/0.13n/a1.190.04(v)1.15Secure

Provider Protection and Savings Plan

0.00/0.00n/a0.940.020.92Cash

0.14/0.15n/a1.050.06(v)0.99Managed

0.13/0.15n/a1.020.04(v)0.98Matched


0.11/0.13n/a1.020.04(v)0.98Secure

Provider Special Purpose Plan

0.00/0.00n/a0.940.020.92Cash

0.14/0.15n/a1.050.06(v)0.99Managed

0.13/0.15n/a1.020.04(v)0.98Matched


0.11/0.13n/a1.020.04(v)0.98Secure

Secure Investment Bond

0.06/0.06n/a1.780.01(v)1.77Guaranteed

0.14/0.15n/a2.060.06(v)2.00Managed


SuperGuard

0.06/0.06n/a1.890.011.88Guaranteed

SuperGuard II


0.09/0.09n/a2.050.01(v)2.04Capital Guaranteed (mature portfolio)

0.14/0.15n/a1.940.05(v)1.89Managed

10

Buy/Sellmargin(iv)





%% pa% pa% pa% pa

0.14/0.15n/a1.940.05(v)1.89Managed (mature portfolio)


0.11/0.12n/a2.130.07(v)2.06Property Biased (mature portfolio)

SuperGuard Managed

0.14/0.15n/a1.940.05(v)1.89Managed

SuperGuard Plus

0.09/0.09n/a2.050.01(v)2.04Guaranteed

0.14/0.15n/a1.940.05(v)1.89Managed


Management costs are shown after the benefit of any tax deductions passed on to you in relation to the fees charged by us. Depending onthe product you hold,management costswill be shown in your annual statement either as an estimated amount under indirect costs of yourinvestment or as an ICR % rate (or both).

(i)

Management fees are shown after the benefit of any tax deductions passed on to you in relation to the fees charged by us.Management feesinclude administration, asset management and investment management fees as applicable depending on the product.

(ii)

The transaction cost allowance is based on the latest information available to us at the date of this document. It can change at any timewithout notice to you and may exceed the highest amount shown. Refer to the Explanation of costs section below for more information.

(iii)

Buy and sell margins are based on the latest information available to us at the date of this document. They can change at any time withoutnotice to you and may exceed the amounts shown. Refer to the Explanation of costs section below for more information.

(iv)

Themanagement fee for these investment options includes estimates of costs deducted from underlying investments. These estimatedamounts may vary and as a result themanagement fee for these investment options may be more or less than the amounts shown.

(v)

11

Explanation of costs

Indirect costsIndirect costs are incorporated into the investment option’s unit price (or crediting rate, if applicable). They are not fixed, will varyfrom time to time andwill depend on the actual mix and type of assets of the underlying investments, the trading of those assets,and the actual costs incurred.

They may comprise of:

– performance based fees;– investment related costs, such as audit and legal fees, tax andaccounting services, custody, regulatory compliance and registry

services and securities lending costs; and– costs of investing in over-the-counter (OTC) derivatives used to gain economic exposure to assets.

Indirect costs are estimated based on the actual costs incurred for the year ended 30 June 2019. Where the actual costs are notknown, we have estimated these costs based on the latest information available to us. Where an investment option is new, or wasfirst made available during this or the last financial year, we have estimated the costs that currently apply. We are in the processof updatingour estimates of costs for the year ended30 June2020andexpectupdated cost estimates tobepublished in September2020. In view of the recent increase in market volatility due to COVID-19, transaction costs for some investment options may haveincreased. Past costs are not a reliable indicator of future costs.

Performance based fees

We do not directly charge a performance fee, however performance based fees (PBFs) are paid to certain investment managers. APBF is a reward an investment manager receives if they exceed specific performance targets, normally up to 25% of theoutperformance over the relevant benchmark index. Any PBFs charged are deducted from the underlying assets of the investmentoption and reflected in the unit price or crediting rate declared and are in addition to any investment or administration fees.

Each PBF is calculated slightly differently but they all have the following common elements:

– A PBF is only payable to a manager if they achieve a target level of return.– Each time a PBF is paid the portfolio must reach the previous highest value plus the appropriate performance hurdle before

a new PBF is payable.– PBFs are calculated and accrued regularly (at least monthly) and incorporated into the calculation of unit prices. The accrued

PBF can rise or fall in line with delivered performance.– PBFs are only payable at the end of each financial year and in certain circumstance payments may be delayed.

Multi-sector and multi-manager investment options may have a number of investment managers with PBFs, and each will bedetermined on each investment manager’s performance. This means an individual manager can earn its PBF irrespective of theinvestment option’s overall investment returns.

PBFs for each investment option are based on the actual costs incurred for the year ended 30 June 2019. Where the actual costsare not knownwe have estimated these costs based on the latest information available to us. Where an investment option is new,or was first made available during this or the last financial year, or where a PBF has been introduced to an existing investmentoption, we have estimated the PBFs that apply. We are in the process of updating our estimates of PBFs for the year ended 30 June2020 and expect these to be published in September 2020. Past PBFs are not an indication of future performance and should notbe relied on as such. If the investment performance of a particular asset class is better than the set benchmark the PBF paid couldbe much higher.

12

Transactional and operational costsTransactional andoperational costs are generally incurredwhendealingwith the assets of the relevant investment option, includingany assets of any investment vehicles in which the investment option invests. They include include brokerage, settlement andclearing costs, stamp duty, the buy/sell spread of any underlying investments and certain property operating costs in relation tothemanagement of real assets including rates, utilities, repairs andmaintenance costs that have not been recovered from tenants.

Transactional and operational costs incurred by an investment option are reduced by the charging of a transaction cost allowanceor buy and sell margins as applicable.

Transactional and operational costs are not quantified and are not included in indirect costs.

Buy and sell margins

For some investment options there is a difference between the unit price used to value contributions and rollovers made into theinvestment option (buy unit price) and the unit price used to value withdrawals and rollovers made out of the investment option(sell unit price). This difference is due to the buy and sell margins.

– The buy margin is added to the unit price of the underlying investment to arrive at the buy unit price.– The sell margin is deducted from the unit price of the underlying investments to arrive at the sell unit price.

Buy and sell margins ensure customers who transact bear the costs generated by those transactions. An investment option’s buyand sell margins are set to reflect the estimated transaction costs the investment option will incur as a result of new investmentsor withdrawals and are retained by the investment option. They aren't paid to us or any investment manager.

Buy and sell margins represent an additional cost to you of transacting and are not charged separately. They can change at anytime without notice to you. They do not apply to investment portfolios that declare a crediting rate.

Transaction cost allowance

For some investment options the unit price includes a transaction cost allowancewhich is based on an estimate of the anticipatedtransaction costs each investment option will incur. The transaction cost allowance aims to offset the actual transaction costsincurred and isn't paid to us or any investment manager.

The anticipated transaction costs are basedon forecast new investments andwithdrawals for each investment option. For example:

– If new investments are expected to exceed withdrawals from an investment option, then asset values may be adjusted byadding an allowance for the costs of buying assets which will increase the unit price.

– Similarly, if new investments are expected to be less than withdrawals then asset values may be adjusted by subtracting anallowance for the costs of selling assets which will decrease the unit price.

The transaction cost allowancemay change on a regular basis and can change without notice to you. Depending on the change,the value of your investment in the investment option will either increase (a benefit to you) or decrease (a cost to you).

The transaction cost allowance does not apply to investment options that declare a crediting rate.

13

Changes to investment option fees and costsChanges to feesDepending on the policy you hold, AMP Life may change fees or introduce new fees, however we will notify you at least 30 daysbefore any increase in the fees we charge, except for any fee increases in line with the Consumer Price Index (CPI) where no noticeis given.

For all other material changes in fees charged by us we will notify you as soon as practical and update this document accordingly.

Changes to costsWeexpect to update estimates of costs for each investment option at least annually basedon the costs incurred for the last financialyear to 30 June, including any management fees charged by any underlying investment managers.

These annual updates will be made as soon as reasonably practical after 30 June. Wemay also update costs if we become awareof any material changes during the current financial year.

We will notify you of any material changes to costs within 12 months of the change, unless the change is materially adverse, inwhich case we will notify you within 3 months of the change.

Changes to investment optionsWe regularly monitor our investment options and investment managers to ensure our range continues to suit the needs of ourcustomers. Wemay add, close or terminate investment options, add new investment managers, as well as change the aim andstrategy and asset range or benchmark of an investment option at any time. If you have money in an investment option that isterminated, we will switch your monies to an investment option with similar risk/return profile.

These changes may impact the fees and costs that apply and wewill notify you about anymaterial changes as appropriate, whichmay be after the change occurs.

14

Contact UsIf you would like to knowmore about how AMP Life can help you, please contact your adviser or AMP Life:

This report is issued by AMP Life Limited ABN 84 079 300 379 (AMP Life), AFSL 233671which is part of the Resolution Life Group and is the issuerof this/these product/s.

What you need to know

Although AMP Life believes the information in this document is accurate and reliable as atthe date of this document, to the extent permitted by law, no company in the ResolutionLife Group, nor any director or any officer of any company in the Resolution Life Group,makes any representation or warranty as to the accuracy, reliability or completeness ofmaterial in this document.

133 7318.30am – 7pm(Sydney time)Monday – Friday

phone

amplife.com.auwebExcept in so far as liability under any statute cannotbeexcluded, companies in theResolutionLife Group and directors, officers, employees and consultants of the Resolution Life Groupdo not accept any liability (whether arising in contract, tort or negligence or otherwise) forany error or omission in this document (whether direct, inconsequential or otherwise).

[email protected] Life CustomerServicePO Box 300PARRAMATTA NSW 2124

mail

The information provided in this document is general information only and does not takeaccount of your personal financial situation or needs. You should obtain financial advicetailored to your personal circumstances before acting on any information contained in thisdocument.

AMP Life Investment options fees and costs · 2020. 10. 8. · AMPBalancedGrowth 1.49 (v) 0.18 1.67...

Documents

Transcript of AMP Life Investment options fees and costs · 2020. 10. 8. · AMPBalancedGrowth 1.49 (v) 0.18 1.67...