Modify the illustration to included deductions for fees.
Asset-Based Fee Options
Pay Fees - If you enter an asset-based fee amount in the spreadsheet, you can select to pay the fees out of pocket or to sell shares to pay the fees at the begin or end of your time period.
Use Cash First (for Portfolio Illustrations only) - If you choose to pay annual fees from the sale of shares of a Portfolio Illustration, you can check this option to specify that the application tap cash equivalents first before selling shares in the other securities on which annual fees are applied.
Apply Transaction Fees for Rebalancing - Rebalance results in at least one sale and at least one buy. The sale may involve a fund that has a back-end charge and the buy may involve a fund that has a front-end charge. Any front-end charge that would normally be applied for the bought fund will be applied. For example, if you select the standard schedule, the tool will apply whatever front-end charges that would be applied for a buy on that schedule. On a sale, back-end charges that would normally be applied using the standard back-end schedule would be applied. If you select a custom schedule, the tool will apply the custom % you enter (on the Fees tab) as the same load as the fund. If you have the box unchecked, the system will not apply a front-end or back-end charge for buys/sells due to rebalancing.
Grid Columns
Note: To remove an item from the grid view, right-click on the line item and select Delete. If you delete an investment by mistake, or if you change your mind after deleting it, you can always re-add it from the Investments tab.
Using Apply to All - This feature allows you to apply the same input for an entire column of securities. Type or select the value you would like to apply to an entire column in the row marked Apply to All (located at the top of the list of securities).
List Order - To reorder items in the list, click in the List Order column and enter a new number, then press Enter.
Asset-Based Fee - This section is often used to enter wrap fees.
Annl Fee % - Type the amount of the fee, as a percentage, in the Fee field. For example, if you want to apply a 1% fee, type 1.00 in the field.
Frequency - Click in the field and then use the drop-down menu to select the frequency for deducting fees. Choose from Monthly, Quarterly, Semi-Annually, or Annually. Asset-based fees are deducted as a percentage.
Sales Fees - Charges deducted from an investment upon the purchase or sale. These charges may include front-end loads, deferred loads, or commissions.
Load Type - Use the drop-down menu in this field to select the load type.
Standard - Accept the existing fee schedule for the holding. You can view the Standard Fee Schedule in the last column of the grid by clicking View in the corresponding row for a holding. These values are from Morningstar's internal database.
Custom - When Custom is selected, you can type in an alternate front load in the Amount field.
Letter of Intent - Select this option if the client has signed a Letter of Intent. A Letter of Intent (LOI) is a signed statement that expresses an investor's intent to invest an amount exceeding a given breakpoint within a period of time specified by the fund.
For example, if an investor plans to purchased $50,000 worth of Class A shares over a period of 13 months, where each individual purchase on its own would not qualify for a breakpoint discount, the investor could sign a LOI at the time of the first purchase and receive the breakpoint discount associated with $50,000 investments on the first and all subsequent purchases. If the investor fails to invest the amount stated in the LOI over the prescribed timeframe, the fund will retroactively collect the higher sales charge.
Amount
Standard - Accept the existing fee schedule for the holding. You can view the Standard Fee Schedule in the last column of the grid by clicking View in the corresponding row for a holding. These values are from Morningstar's internal database.
Custom - Select Custom to type in an alternate front load in the Amount box.
Type - Use the drop-down menu to select whether to enter by currency amount or percentage.
Redemp/Deferred Charge - For funds, deferred or redemption fees are applied to charge a fee to the investor upon redeeming shares. Deferred fees apply for most withdrawals, and redemption fees are deducted when you choose to liquidate the investment. Use the drop-down menu to select Yes or No to apply the standard deferred or redemption fees. You can view the Standard Fee Schedule in the last column of the grid by clicking View in the corresponding row for a holding. These values are from Morningstar's internal database.
Standard Fee Schedule - Click the View link to see the standard charges deduced for the investment. These are applied in the hypothetical illustration if the Standard Load Type is selected.
See Also