Munro Climate Change Leaders Fund Active ETF (ASX: MCCL) Issues Supplementary PDS Updating Transaction Cost Estimates

Details of the 14 July 2026 Supplementary PDS for MCCL Investors

The Munro Climate Change Leaders Fund Active ETF issued a Supplementary Product Disclosure Statement (SPDS) on 14 July 2026, amending select transaction cost disclosures in the original PDS dated 21 October 2024. This SPDS solely updates transaction cost information; all other Fund details, including investment objectives, strategies, risk profiles, and management fees, remain unchanged.

The SPDS updates the transaction costs row in the fees and costs summary table (page 17), revises footnotes (page 18), replaces the annual fees and costs example table and footnotes (page 19), and modifies paragraphs in the transaction costs section (page 20). Investors are explicitly advised to read both the SPDS and original PDS comprehensively prior to making investment decisions. Terminology used aligns with definitions in the original PDS unless otherwise noted.

Net Transaction Costs Surge from 0.04% to 0.14% Annually for MCCL

The primary update in the Supplementary PDS is the net transaction cost increase from 0.04% to 0.14% per annum of net asset value, marking a 250% rise compared to the October 2024 disclosure. Transaction costs represent expenses incurred by the Fund during asset trades, paid directly from Fund assets rather than charged separately to unitholders.

The net transaction cost figure accounts for reimbursements from the Responsible Entity, GSFM Responsible Entity Services Limited, out of the bid-offer spread investors pay when trading MCCL units on the ASX. This distinction between net and gross transaction costs is critical for investors evaluating the Fund's total cost structure. Estimates are based on information available at the SPDS date and reflect the Responsible Entity's reasonable projections for the current financial year.

Gross Transaction Costs Revised Upward from 0.14% to 0.22% Per Annum

The Supplementary PDS also revises gross transaction costs from 0.14% to 0.22% per annum of net asset value. This figure represents the total transaction costs before reimbursements from the Responsible Entity via the bid-offer spread. The difference of 0.08% per annum between gross and net costs indicates the portion reimbursed to the Fund. The announcement does not specify factors driving the cost increase but attributes the updated figures to reasonable estimates for the current financial year.

MCCL Fee Structure Remains Stable: Management Fee at 0.90%, No Contribution or Performance Fees

Despite the transaction cost updates, the Fund’s fee structure remains unchanged. The management fee is maintained at 0.90% per annum of net asset value. For example, a $50,000 holding incurs $450 annually in management fees. No contribution fees apply, and performance fees remain at zero, as confirmed by the updated SPDS.

The combined fees example shows that an investor with a $50,000 balance who adds $5,000 during the year would pay total fees and costs of $520, incorporating the updated 0.14% transaction cost. Actual costs may vary depending on negotiated fees.

Updated Annual Cost Example Reflects $70 in Transaction Costs on $50,000 Investment

The SPDS replaces the annual fees and costs example on page 19 of the original PDS to reflect the revised transaction cost rate. Under the new example, transaction costs on a $50,000 balance with a $5,000 contribution amount to $70 annually, up from the prior estimate based on 0.04%. Combined with $450 in management fees, total annual costs reach $520. Contribution and performance fees remain nil. Footnotes clarify that these figures are reasonable estimates for the current financial year and direct investors to the PDS for further fee explanations.

Overview of the Munro Climate Change Leaders Fund Active ETF and Its ASX Listing

The Munro Climate Change Leaders Fund Active ETF is an actively managed exchange-traded fund listed on the Australian Securities Exchange under ticker MCCL. Registered with ASIC under ARSN 654 018 952, it is issued by GSFM Responsible Entity Services Limited (ABN 48 129 256 104), which manages compliance and regulatory obligations. The Fund offers investors the liquidity of an ASX-traded product combined with active management by Munro Partners, a Melbourne-based global equities manager focused on climate change leadership themes.

The Fund targets companies leading or benefiting from the transition to a low-carbon economy. The original PDS was dated 21 October 2024; this July 2026 SPDS is the first supplementary disclosure issued. The Responsible Entity oversees fee disclosures and regulatory compliance under Australian financial services law.

Transaction Cost Mechanics Within MCCL's Fund Structure

Transaction costs arise from the Fund’s ongoing asset trading activities and are paid directly from Fund assets, reducing net asset value and borne proportionally by all unitholders. These costs include brokerage, market impact, and other trade execution expenses.

The net transaction cost rate of 0.14% per annum reflects deductions after reimbursements from the Responsible Entity out of the bid-offer spread paid by investors trading MCCL units on the ASX. This mechanism is standard for Australian active ETFs and is disclosed to comply with managed investment scheme regulations.

Regulatory Framework for Supplementary PDS Issuance for ASX-Listed Funds

Australian financial services regulations require responsible entities of registered managed investment schemes to update Product Disclosure Statements when material changes occur. When changes do not justify a full new PDS, a Supplementary PDS is issued to amend relevant sections. GSFM Responsible Entity Services Limited’s SPDS for MCCL follows this regulatory process by updating only transaction cost disclosures while leaving other PDS content intact.

Updated fee and cost disclosures are essential for investors in ASX-listed managed funds and active ETFs. Regulatory standards mandate that transaction cost estimates be reasonable and updated if materially changed. The net transaction cost increase from 0.04% to 0.14% per annum, though modest in dollar terms, represents a significant percentage rise, triggering the supplementary disclosure requirement. Investors should review both the original and supplementary PDS to fully understand the Fund’s cost structure.

Investor Guidance Following MCCL's Revised Transaction Cost Disclosure

Current and prospective MCCL investors are urged to read the Supplementary PDS alongside the original PDS dated 21 October 2024 before making investment decisions. Future disclosures may include additional PDS updates, periodic Fund reports, or changes to fees or investment mandates. Investors can monitor MCCL’s net asset value and ASX unit price for ongoing performance insights.

The increase in net transaction costs from 0.04% to 0.14% per annum means that a $50,000 investment’s estimated transaction cost rises from approximately $20 to $70 annually—an additional $50 per year. While modest for many investors, this adjustment affects total cost comparisons among active ETFs. The management fee remains the largest cost at 0.90% per annum. No changes to investment strategy, portfolio composition, or performance history were disclosed in this update.