Defined fees

as at 1 February 2017

more info from AvSuper iconThe information on this web page forms part of the AvSuper Product Disclosure Statement (dated 1 February 2017) and AvSuper Corporate Product Disclosure Statement (dated 1 February 2017). Please refer to your PDS and our AvSuper Member insurance guide and/or member investment guide for more information.

Activity fees

A fee is an activity fee if:

  1. the fee relates to costs incurred by the trustee of the superannuation entity that are directly related to an activity of the trustee:
    1. that is engaged in at the request, or with the consent, of a member; or
    2. that relates to a member and is required by law; and
  2. those costs are not otherwise charged as an administration fee, an investment fee, a buy‑sell spread, a switching fee, an exit fee, an advice fee or an insurance fee.

Administration fees

An administration fee is a fee that relates to the administration or operation of the superannuation entity and includes costs that relate to that administration or operation other than:

    1. borrowing costs; and
    2. indirect costs that are not paid out of the entity that the Trustee has elected in writing will be treated as indirect costs and not fees, incurred by the Trustee of the entity or in an interposed vehicle or derivative financial product; and

c. costs that are otherwise charged as an investment fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

Advice fees

A fee is an advice fee if:

  1. the fee relates directly to costs incurred by the trustee of the superannuation entity because of provision of financial product advice to a member by:
    1. a trustee of the entity; or
    2. another person acting as an employee of, or under an arrangement with, the trustee of the entity; and
  2. those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an insurance fee.

Buy-sell spreads

A buy-sell spread is a fee to recover transaction costs incurred by the trustee of the superannuation entity in relation to the sale and purchase of assets of the entity. For AvSuper members, there is no difference in these costs.

Exit fees

An exit fee is a fee to recover the costs of disposing of all or part of members’ interests in the superannuation entity.

Indirect cost ratio

The indirect cost ratio (ICR), for a MySuper product or an investment option offered by a superannuation entity, is the ratio of the total of the indirect costs for the MySuper product or investment option, to the total average net assets of the superannuation entity attributed to the MySuper product or investment option.

Note: A dollar-based fee deducted directly from a member’s account or paid out of the superannuation entity is not included in the indirect cost ratio.

Investment fees

An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes:

a. fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and

b. costs that relate to the investment of assets of the entity, other than:

i. borrowing costs; and

ii. indirect costs that are not paid out of the superannuation entity that the Trustee has elected in writing will be treated as indirect costs and not fees, incurred by the Trustee of the entity or in an interposed vehicle or derivative financial product; and

iii. costs that are otherwise charged as an administration fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

Switching fees

A switching fee for a MySuper product is a fee to recover the costs of switching all or part of a member’s interest in a superannuation entity from one class of beneficial interest in the entity to another.

A switching fee is a fee to recover the costs of switching all or part of a member’s interest in the superannuation entity from one investment option or product in the entity to another.

 

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