Investment costs

At UniSuper, we aim to keep our fees and costs low. We don't pay commissions to agents or shareholder dividends.

However, most of our assets are invested through professional external investment managers who charge fees for managing UniSuper's investments.

These fees are deducted from the assets of the Fund and each investment option. The management costs incurred in connection with each investment option, taken as a percentage of the average net assets in the relevant option are known as the indirect cost ratio (ICR).

The ICR covers all internal and external fees incurred in managing the investment options including:

• a Member Protection Levy of 0.07% that protects small account balances (accumulation super only)
• fees charged by external investment managers
• fees charged by UniSuper Management Pty Ltd for internally managed assets, and
• custodial and valuation fees.

The ICR does not include account-based fees such as administration, switching or withdrawal fees.

The actual amount you will be charged each financial year depends on the size of the fund, the type of assets held, the investment mandates given to the investment managers, the actual investment performance achieved and any performance-based bonuses paid.

ICRs (%) for the year ended 30 June 2011

ICRs provided are estimates only, based on the previous financial year and include a Member Protection Levy of 0.054%. From 21 April 2012 the Levy will be 0.07%. Actual ICR figures are not currently known and can be higher or lower. The ICRs shown for Pensions include all internal and external fees incurred in managing these funds. They do not include the Member Protection Levy

1. As a result of recent changes to the investment structure of these options, the estimated ICR figures for Accumulation super for the year ending 30 June 2012 are 0.17% for the Socially Responsible Balanced option and 0.19% for the SociallyResponsible High Growth option. The estimated ICR figures for Pensions for the year ending 30 June 2012 are 0.12% for the Socially responsible Balanced Option and 0.14% for the Socially Responsible High Growth option.

2. Australian Fixed Interest investment option renamed to Australian Bond on 21 April 2012.

3. The ICRs shown for Global Environmental Opportunities, Australian Equity Income and Global Companies in Asia are estimates only. These investment options were introduced on 21 April 2012 therefore ICRs for prior years are not available.