Spaceship has announced it could change its existing fee structure in November, with fees increasing for most customers.
Announced via the company’s blog earlier today, “the new flat-rate management fee will replace the current percentage-based fee, and no other fees and costs will apply".
Kicking in from 1 November, existing and future Spaceship customers with a balance of more than $100 will now face a $2.50 management fee each month.
Previously, Spaceship allowed users to micro invest via its Voyager fund fee-free up to $5,000.
After that point, investors would face a management fee of 0.10 per cent if they opted for the Spaceship Universe portfolio or the Spaceship Earth portfolio. Those who chose the Spaceship Origin portfolio got a lower 0.05 per cent management fee instead.
Going forward, all three portfolios will face the same $2.50 per month management fee.
In an email to customers seen by InvestorDaily, Spaceship insisted that no other fees or costs would apply, and that the fee encompasses all portfolios attached to individual accounts rather than slug customers on a per-portfolio basis.
The company was also quick to add that the new fee may be tax-deductible, but recommended that customers consult their accountant first.
Citing a recent string of strong investment performance outcomes, the company said it had decided that “now is the right time to review and simplify our pricing”.
Spaceship CEO Andrew Moore said the changes were being introduced to enable future investments in the Spaceship’s team, tech and product.
“The introduction of this low-cost fee makes customer prices simpler and will help us grow,” he said.
The move marks the first time that Spaceship has raised its fees since it launched in 2018.
“Changes such as these aren’t taken lightly and we understand this represents a fee increase for most customers,” the company said.
While admitting that the changes represent an increase in fees for many of its customers, Spaceship continued to insist that it remains one of the lowest cost micro investing apps available in Australia.
“To build a sustainable business that lasts for years to come, we need to create revenue that we can reinvest into our technology, team, and product,” the company said.
Back in 2018, Spaceship faced fines from regulator ASIC over claims that were on its website.
At the time, ASIC said the fundamental investment philosophy of Spaceship’s GrowthX fund “prioritised marketing over accurate disclosure”.
