From 30 September 2017, there are new rules that cover the reporting of investment fees. While there are no new or additional costs, we’re changing the way we display the current costs.
Your super is an investment and as with any investment there are costs involved with making and maintaining that investment. It’s like paying stamp duty when buying a property, or brokerage when purchasing shares. Investment costs are paid out of the investment option before we calculate the unit price. They are not deducted directly from your account.
The new rules expand the types of fees and costs we show you. For example, we now include the costs of:
- buying and selling investments, such as brokerage, stamp duty and sales commissions
- using derivative contracts to help minimise the impact of movements in the Australian dollar on investment returns.
These costs are paid to third parties such as brokers, custodians and administrators to cover the expenses they incur in managing the fund’s investments and have always been paid. We are now making it clearer by including them in our investment fees.
All super funds must comply with the new regulations which are intended to provide a more detailed and consistent view of the costs of managing your super investments, and enable you to compare costs with other funds.
Find out more about our fees and costs
See why your investment returns are not affected
Putting members first drives our investment approach
While the way we display our fees has changed, our approach to investing your super remains the same. At the heart of this approach is understanding that the returns you receive depend on a range of factors, not just fees.
We take a disciplined approach to building a diversified portfolio of investments . This helps us to maximise returns over the long term while keeping investment risks to a minimum. For example, we are expanding our investment in property, infrastructure and private equity. While these assets are more expensive to manage, they diversify our risks and help build strong returns, and as a result may help smooth volatility in returns.