AvSuper 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.

It is important to understand the following fees and costs that you may be charged as part your AvSuper membership. 

Before choosing an option, please consider the likely investment return, the associated risk and your personal needs, risk comfort and investment timeframe.

Type of fee or cost Amount How and when paid
Investment fee* 0.77% for Growth option, or
0.60% for Stable Growth option, or
0.69% for Balanced Growth option, or
0.82% for High Growth option, or
0.51% for Conservative Growth option, or
0.12% for Cash option, or
0.72% for the Australian Shares option, or
0.98% for the International Shares option
paid out of fund assets as required and taken into account in the calculation of weekly unit prices
Administration fee $59.80 pa ($1.15 per week) deducted from your account balance at the end of each month
  plus 0.23% pa of your account balance paid out of fund assets as required and taken into account in the calculation of weekly unit prices
Buy‑sell spread Nil N/A
Investment switching fee Nil N/A
Exit fee Nil N/A
Advice fees for all members investing in a particular option Nil N/A
Other fees & costs1
Indirect cost ratio2 0.07%* for Conservative Growth option, or
0.09%* for Stable Growth option, or
0.09%* for Balanced Growth option, or
0.09%* for Growth option, or
0.08%* for High Growth option, or
0.00%* for Cash option, or
0.04%* for the Australian Shares option, or
0.03%* for the International Shares option
deducted by underlying fund managers or in underlying investments we invest in and are reflected in weekly unit prices

1 The other fees and costs that may apply are a family law split, personal advice fees (where the advice is not about AvSuper) and insurance fees. Refer to the ‘Additional Explanation of Fees and Costs’ below.

2 Indirect costs do not include certain transactional and operational costs (approximately 0.04% pa) paid outside the fund.

*Estimates only

Fees (read our definitions) are current and may be revised or adjusted by AvSuper from time to time without your consent. New fees may also be introduced. If there is an increase in fees, you will be notified at least 30 days before the change.
 

AvSuper is run only to profit members, doesn’t pay any commissions, has strong long term investment performance, and charges competitive fees.

  1. Activity fees are only applied to services used by a member. Fees for a family law split (ie money is withdrawn for a spouse as part of a divorce or separation) are the only AvSuper activity fees. A split costs $205 per person and determining the value of a defined benefit for a family law court costs $250. See our family law fact sheet for details.
  2. The indirect cost ratio of each investment option is a reasonable estimate of costs paid outside the fund for the Fund’s investment of assets and is based on information from the underlying investment manager and our understanding of legislated disclosure requirements for the year ended 30 June 2016. The indirect cost ratio does not include operational and transactional costs. The indirect cost ratio may change year to year due to changes in investment managers, asset allocations and other factors. Therefore, the rates specified in the table above will be periodically reviewed and are subject to change.
  3. Operational and transactional costs may include brokerage, buy-sell spreads, (for some of our managers) settlement costs (including custody costs), clearing costs and stamp duty on investment transactions (that is, costs relating to purchases and redemptions of investments) incurred outside the Fund in relation to underlying investments. These costs are an additional cost to members, estimated to be 0.04% of assets, per annum. They are reflected in the calculation of weekly unit prices and are not charged as a separate fee. The AvSuper Trustee does not receive any part of the operational and transactional costs.
  4. Insurance fees apply for any insurance cover you may have.
  5. The cost of our Member Advice Consultants providing advice about AvSuper accounts, including choosing investment options and contribution strategies, is included within the administration fees for existing members. For further information about advice services that AvSuper’s advisers can provide, refer to the AvSuper Financial Services Guide. If a member requires additional (more complex) personal advice which is not about their AvSuper account, additional advice fees apply which will be explained to you before the advice is given and are not negotiable. Advice fees for personal advice range from $300-2,000 depending on the nature of the advice, and are payable directly by you or (if you consent) may be deducted from your account. The cost of advice relating to non-superannuation matters cannot be deducted from your AvSuper account. AvSuper advisers do not receive any commissions on advice given.
  6. Some of AvSuper’s investment managers may be eligible for additional fees (called performance fees) if they exceed agreed targets for assets they manage. Performance fees may affect investment fees and are incorporated into account in the calculation of weekly unit prices. If performance fees are higher or lower than estimated, investment fees will be higher or lower than the fee table shows. The investment fees above include estimated performance fees as follows:
    Option Performance fee Option Performance fee Option Performance fee
    High Growth 0.11% Stable Growth 0.07% International Shares 0.00%
    Growth 0.09% Conservative Growth 0.03% Cash 0.00%
    Balanced Growth 0.08% Australian Shares 0.15%    
  7. The Fund’s fees and costs in the table above do not include borrowing costs. Borrowing costs include costs associated with loans made by some underlying investment managers. These costs are an additional cost to members, estimated to be 0.01% of assets pa, but are reflected in the calculation of weekly unit prices, not charged as a separate fee.
  8. Where applicable, GST payable by the Trustee (less reduced input tax credits) and stamp duty has been included in the fees shown in the table above. Other taxes may apply. The benefit of any tax deductions the Fund may get for administration and insurance related expenses deducted from member accounts are passed on via direct rebates to relevant member accounts. Tax deductions for investment related expenses are reflected in unit prices. The Trustee maintains an Operational Risk Financial Requirement (ORFR) reserve to ensure adequate financial resources to cover losses arising from significant operational risks and risk events (not otherwise covered). We have set a target funding level for the ORFR reserve and 0.03% pa is currently taken into account in the calculation of weekly unit prices to maintain the target funding level. . We will advise members if this deduction is required to increase beyond 0.13% pa (being the maximum allowable deduction set by the trustee). The Trustee may change the target funding level or maximum allowable deduction, or make other deductions to replenish the ORFR reserve, if required or considered necessary or appropriate.
  9. We may change or add new fees at any time without your consent, notifying members at least 30 days before such changes where required. Estimated fees may vary from time to time without prior notice.

Activity fees

A fee is an activity fee if:

  1. the fee relates to costs incurred by the trustee of AvSuper 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 AvSuper’s administration or operation and includes costs incurred by the AvSuper Trustee other than:

  1. borrowing costs; and

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

  3. costs that are not 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 AvSuper Trustee because of the provision of financial product advice to a member by:
    1. a trustee of AvSuper; or
    2. another person acting as an employee of, or under an arrangement with, the AvSuper Trustee; 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 AvSuper in relation to the sale and purchase of assets of the entity.

Exit fees

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

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 from a member’s account or paid out of AvSuper is not an indirect cost ratio.

Investment fees

An investment fee is a fee that relates to the investment of AvSuper’s assets and includes:

  1. fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and
  2. costs that relate to the investment of assets of AvSuper other than:
    1. borrowing costs; and

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

    3. costs that are not 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 or other superannuation product) is a fee to recover the costs of switching all or part of a member’s interest in AvSuper from one investment option or product in AvSuper to another.

Note the following is a Government prescribed Consumer Advice Warning and we are unable to negotiate fees as our fees cover operations on a profit-for-members basis.

Did you know? Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30-year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superor investment performance or the provision of better member services justify higher fees and costs. You may be able to negotiate to pay lower contribution fees and management costs where applicable. Ask the fund or your financial adviser. To find out more or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (www.moneysmart.gov.au) has a superannuation calculator to help you check out different fee options.

Example of annual fees and costs

EXAMPLE – the Growth (MySuper) investment option Balance of $50,000
Investment fees  0.77% pa of assets  For every $50 000 you have in the Growth (MySuper) option you will be charged $385* each year 
PLUS Administration fees  $1.15 per week and
0.23% pa of account
 AND you will be charged $59.80* each year regardless of your balance plus $115* in administration fees 
PLUS indirect costs for Growth (MySuper) 0.09% AND indirect costs of $45 each year will be deducted from your investment 
EQUALS cost of fund    If your balance was $50,000, then for that year you will be charged fees of $604.80* for Growth (MySuper).

*Other fees may apply, such as Family Law Settlements. Note that for an AvSuper income stream, the annual cost for $50,000 in our default investment mix would be $488.90 (as indirect costs would be $34.65 and investment fees would be $345).

 

Live Chat Support Software

Phone 1800 805 088 (Free call)
Email:
avsinfo@avsuper.com.au