Just like any other product or service, TM home investor fund is subject to charges and expenses which have the effect of reducing the potential returns of your investment. These include the costs of running the fund, as well as marketing and distribution costs.
The share class you can invest into through the online portal provided by WealthKernel has estimated ongoing charges (OCF) of 1.71% per year *. This includes the Annual Management Charge of 1.1% plus other estimated variable expenses incurred in operating the fund. The variable expenses depend on things like the number of investors in the fund, property valuation fees and legal costs.
Of the 1.1% Annual Management Charge, 0.2% is paid to WealthKernel as a product fee to manage the service they provide, which includes the administration of your investment on their portal as well as the ongoing reporting to you.
There are no initial charges made on your investment through the online portal, so all of your money is used to buy shares in TM home investor fund. However, the costs of buying or selling properties (such as Stamp Duty Land Tax, disbursements, estate agent and legal fees) are factored into the share price. More information can be found in the fund’s prospectus.
Different share classes are available on third-party investment platforms and through financial advisers. Not all share classes are available directly to retail investors. Other share classes may have higher or lower charges than that available through the WealthKernel portal, but the third-party platform or financial adviser will usually make a charge for the service and, if applicable, the financial advice provided. A full list of share classes can be found in the fund’s prospectus which you can contact us to obtain.
You may also contact us for an application form should you not wish to use any of the above methods to invest in the fund.
* OCF correct as at 13th December 2021.