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Overview
Platform fee calculations in AdviserLogic’s Digital Advice module are designed to provide accurate, transparent comparisons across investment platforms. These calculations rely on structured inputs such as account balances, fee schedules, and platform-specific rules.
In some cases, discrepancies may occur due to data inputs, platform configurations, or calculation methodologies. Understanding how these fees are derived and where to validate them will help you troubleshoot and resolve issues efficiently.
Troubleshooting Platform Fee Calculations
Morningstar is aware that, as a Financial Adviser, you need to accurately disclose fees, and to support this, we are making ongoing efforts to refine our fee calculations.
Current fee calculations capture the administration fees for each provider based on the most current PDS available.
The purpose of this paper is to clarify where we have identified outliers within our calculations for platform fees so that you can confidently leverage AdviserLogic’s calculations where these circumstances do not apply.
Where possible, we have provided an alternative process. Nevertheless, we acknowledge that completing alternative processes leads to inefficiencies and increases the risk of errors. To improve efficiencies, we will continue to endeavour to refine these calculations.
Administration fees are calculated based on the platform’s categorisation of underlying products
Some platforms apply different Administration fees based on the underlying funds within the portfolio. MyNorth is an example, in which the Administration Fee is determined first by the total balance, then by the proportion of holdings in each of the Core, Select and Choice menu options.
As a portfolio can include a blend of products classified as Core, Select and Choice, AdviserLogic is currently unable to apply the correct fee tier to each subtotal within the investment menu categories, and the proportionate administration fee cannot be calculated.
Alternative process
Given the current functionality of AdviserLogic, it adopts the assumption that all investments within MyNorth Investment options are categorised under the Choice menu. This means that portfolios consisting entirely of Choice menu items will be calculated correctly.
For a portfolio where a client holds Core or Select investment options, please calculate the Administration fee via https://www.mynorthfees.com.au/, then enter the fees into AdviserLogic manually.
📌Note
Platforms including HUB24 and Netwealth which offer a Core and Plus menu range are not impacted by this limitation as you can select the menu range when you select the platform.
Administration fees are calculated based on the platform’s categorisation of underlying products
Some platforms apply different fees based on the type of investment held e.g., a different administration fee applies to managed investments compared to listed securities, international securities, managed portfolios etc.
Currently within AdviserLogic the only investment type we specifically identify for the purpose of calculating Administration fees is the Cash Account. Accordingly, AdviserLogic will calculate platform fees based on cash and managed fund holdings, so where an investment type other than cash would give rise to a different administration fee, the fee calculation must be completed manually.
Examples
HUB24 – 0.10% pa on international securities
Asgard open eWRAP Investment – listed securities calculated at increased tier.
Another example of this is CFS FirstChoice Wholesale Personal Super. This platform offers a fee rebate based on the inclusion of specified funds within the portfolio.
Transactional fees
Fees can often be incurred for transactions including Asset Transfers and Brokerage. As AdviserLogic does not capture the way the portfolio is populated, there is no capability to calculate this component of the fee.
Example
Asset Transfer Fee - This fee is charged only in case of in-specie transfer and the fees are charged in $ terms per investment transferred out. Some platforms even have different fees in $ terms for Managed Funds and listed Securities.
Brokerage Fee - This fee is charged only in case of trading in listed securities and the fees are charged on the traded value balance only & not on the total portfolio balance.
You can manually add Transactional fees within AdviserLogic by selecting the blue Transactional Fees + button and adding the fee name and then the fee amount or percentage.
If you would like to talk to someone about anything outlined in this article, please contact AdviserLogic by emailing [email protected] or calling 1800 314 773 between 9 am - 8 pm Sydney time.