Services
The reason this is called Superannuation Warehouse is that you get a Self Managed Superannuation Fund ("SMSF") at a cost efficient price in a standardised format. We offer a complete service, from start up, online investment, financial statements and tax returns.
Standard set-up and investment in the BlackRock Customised Portfolio Service ("CPS") is the reason why this can be offered at such a competitive price. Note that other accountants will charge around $2,000 to set-up a fund and $2,000 to $5,000 per year to do the financial statements and external audit. We do it for $390 set-up and $390 fixed fee per year. This is the cost for a SMSF with 1 to 4 members in the fund.
Fees, costs and charges are as follows:
- Set up of a new SMSF and CPS accounts for 1 to 4 members = $390 fixed fee irrespective of the number of members in the fund
- Annual fees for financial statements preparation, tax calculation and external audit = $390 fixed fee
- We appoint and pay an auditor for the audit performed on your fund, the charges for this is included in the fixed annual fee of $390
- Contribution fees, i.e. to contribute to your SMSF = NIL
- Redemption fees = NIL
- Costs, fees and penalties if you decide to close down your fund or move it to another accountant = NIL (we are hopeful you will experience the best service right here and will never move!!)
- amendments to the trust deed e.g. to add incoming members to the fund (up to 4 members in the SMSF) = charge of $100
Parties involved
- Superannuation Warehouse – Administrator sets up SMSF’s on behalf of clients (Trustees) and fulfills accounting duties for the SMSF’s.
- Your new SMSF – Superannuation Warehouse will set up on behalf of clients. These SMSF's will invest in the BlackRock CPS.
- BlackRock Customised Portfolio Service (CPS) – this is the fund in which investments are made. Also sometimes referred to as a Separate Managed Account.
- Financial Planner - to invest in the CPS you need to enter via a financial planner. The name of the planner firm is PetersMcKeown Financial Planners. The default type of advice is general advice, but personal advice is also available. See the comments from the financial planner below.
- Auditor - an external auditor is appointed by Superannuation Warehouse and this charge is covered by the $390 annual fee.
Notes from the Financial Planner, PetersMcKeown
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One of the most efficient and effective means of investing is via a multi-asset fund which is managed by a reputable investment team. The performance of the fund is a function of two main elements: the skill of the managers and the cost of the management and administration. This latter feature makes investing via the BlackRock CPS so very cost effective for investors. The costs have been shaved to a minimum of less than 1% per annum for investors who take the General Advice pathway to invest in such a fund.
To start investing in the BlackRock CPS trustees will need to place their investment through a licensed financial adviser. There are two ways of doing this: by seeking General Advice or by seeking Personal Advice. What is the meaning of each?
General Advice: is when an investor does not provide personal circumstances to an adviser and elects to invest in a financial product based on their own understanding about the investment choice. When an adviser acts on instructions from an investor the adviser is required to warn the investor that no consideration is given to the personal circumstances of the investor and that the adviser is acting on behalf of the investor’s own decision that the investment product suits their own investment requirements.
Personal Advice: is when an investor relies on an adviser to provide advice that is appropriate to the investor’s own circumstances. This requires an adviser to seek personal information from the investor including an assessment of the investor’s attitude to risk and investment objectives and then advises the investor on the appropriateness of the investment product for that investor’s circumstances.
To follow the Personal Advice path an upfront fee will be charged depending on the time involved to meet with an adviser to obtain required information, to prepare a Statement of Advice; and to handle other matters associated with completion of the application process which is required by the Corporations Act. An expected fee may be a minimum of $550 but may be higher depending on the time involved in satisfying the investor’s needs.
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The Product Disclosure Statement for the BlackRock CPS is here:
http://www.blackrockinvestments.com.au/content/groups/australiansite/documents/literature/cps_pds.pdf
When setting up your SMSF you can only invest in the BlackRock CPS. In the CPS you can choose one or more of the following model managers:
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UBS
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BlackRock
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Ralton
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Ausbill Dexia
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Perennial
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Fortis
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BT
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Lonsec
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Three Pillars
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Aegis
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ABN AMRO
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StateStreet
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When you choose a model manager for your fund, you hold shares in your SMA account, based on the same ratios as the model managers use for their portfolios. When the model manager you chose change asset allocations, your portfolio will buy and sell shares in the same ratio as well.
CPS - offering you a professionally
managed share portfolio
Fees charged:
1. Model manager fee - all these model managers charge a fee of between 0% of 0.7% of your fund value per year. The average fee is 0.3% per year of your fund value. This is charged on a monthly basis directly to your CPS account.
2. Administration fee of 0.99% fee is payable to BlackRock. This cover the system that you will have access to and you log into, similar to internet banking.
3. Tax is payable from you SMSF to the tax office. We will calculate your tax payable and advise you when to pay this to the ATO.
4. There is a $150 superannuation levy surcharge payable to the ATO for each SMSF which each fund has to pay. This is generally payable with the income tax liability.
5. When there's more than 1 member in the SMSF, each member has a separate CPS accounts. Tax is calculated for each member based on contributions made and income received in the SMSF. The $150 superannuation levy is spread evenly amongst members in the fund at year end.
For an example of all costs involved with running your SMSF, see the section under "Why Super Warehouse".
Training for prospective trustees can be done here:
www.smsftrustee.com
This is a free online training for trustees. When completing this please note we do not do corporate trustees in Superannuation Warehouse. It is individual Trustees.
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