Indirect costs

18 Jan, 2016 in Investor Info by

ASIC Class Order 14/1252 requires the disclosure of indirect costs from 1 January 2016. The term ‘indirect costs’ means amounts incurred by Paragon (and not charged directly to members as fees) in the course of managing the fund which Paragon knows or reasonably ought to know, will directly or indirectly reduce the amount or value of the fund.

Paragon acknowledges the application of this class order by making the following disclosure: Paragon does not believe that there are any costs that will directly or indirectly reduce the amount or value of the Paragon Fund, other than the following:

  • Paragon is permitted to pass on abnormal and other expenses in addition to the capped expense recovery fee as stated on pages 3, 25 and 27 of the PDS. As disclosed on page 27, Paragon is currently passing on formation costs of $65k incurred in setting up the Fund.
  • The recovery is being spread over a 2 year period from April 2015, to ensure it has an immaterial impact on the monthly unit price for existing unit holders at any point in time. For an investor that holds units over this full two year period, Paragon estimates the total charge to be no greater than 0.003% in aggregate.