Asgard is cutting administration fees charged on managed funds within its eWRAP Investment (eWRAP) vehicle.
The reduction in net administration fees to existing customers will be up to 7.5 per cent and comes after a private GST ruling from the Australian Tax Office (ATO) that eWRAP Investment is an entity under GST law.
The ruling allows a reduced input tax credit (RITC) to be claimed on the administration fees charged on the value of managed investments in eWRAP Investment accounts.
Direct shareholders will miss out though as a RITC cannot be claimed on administration fees paid on share holdings since they are not held in custody by St George Bank-owned Asgard and don't form a part of the GST entity.
However, clients who are registered for GST purposes can claim an RITC directly from the ATO on share holdings and adviser fees where applicable.
"Seventy per cent of the money within eWRAP Investment is held in managed funds. This means that the fee reduction will apply to 70 per cent of eWRAP Investment's total funds under administration," St George Wealth general manager product Dean Thomas said.
