InvestSMART Newsletter - 30th July 2003

Half Price Platinum Membership $143 for 12 months - ENDS Tomorrow!

As you may have read in several newspapers and through our own email newsletters, InvestSMART's CashBack Program effectively reduces your management fees on participating managed funds and superannuation funds by up to 20% by a simple annual CashBack. We are simply giving you back 80% of the trailing commission we earn from the fund manager as a result of your investments being held with InvestSMART. Click here to find out more about the CashBack Program or call a member of the InvestSMART team on 1300 880 160.

Due to the complex nature of differing fee structures on managed funds and Superannuation, InvestSMART decided to make the CashBack Program even easier by inviting our clients to simply fax through their managed fund or superannuation statements on 1300 880 260 or via post to GPO Box 4477, Sydney NSW 2001. We'll then analyse the fees being paid and send them back an information pack as to how they may be able to reduce their fees.

As you may expect we have had literally hundreds of faxes, letters, emails and telephone calls about this free service and the CashBack Program.

The overriding message from our clients and a preliminary analysis of numerous managed fund and superannuation statements is the insane complexity of this entire industry in regard to fee structures and the hidden costs of investing.

The following is a list of some of the different fees named on statements. These fees are hundreds of dollars per month - in some cases thousands. At InvestSMART we do not charge any of these fees. We have a fixed fee of $297 per annum (50% discount during July 2003) and in return provide a great online portfolio service, research on funds and shares, 100% entry fee rebate and CashBack on trail commissions.

Speaking of trail commissions we do not see any mention of these on any statements. They are an invisible fee paid by you to your fund manager who then passes them back to your Financial Adviser or intermediary (or kept by the fund manager if you investing directly with them).

Remember on most platforms such as Master Trusts and WRAP account there are four sets of fees you pay:

1. The admin fee for use of the platform (i.e. all in one account etc) usually 0.8%. This fee InvestSMART cannot rebate or CashBack, and is reasonable considering the service.
2. The MER or management fee charged by the fund manager. Usually wholesale rates, anywhere between 0.7% to 1.2%. Again fair and unable to be rebated or CashBacked.
3. Entry fees. Totally ridiculous and should be rebated in all circumstances. All of your money should go towards your investment, that is, $1 for $1 invested. InvestSMART rebates 100% of all entry fees.
4. The Adviser fee which can be set anywhere from 0.55% to 2%. Fair depending on the rate and the level of service you are receiving from your financial planner. Via the CashBack Program InvestSMART will return 80% of these fees (usually set at the minimal of 0.55%) to the investor .

Get Smart! Stop paying unnecessary fees on your managed investments. Contact us on 1300 880 160 or visit our website www.investsmart.com.au

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Regards
The InvestSMART Team