Significant event notice

August 2019

Following the end of each financial year, we update our investment fee and indirect costs disclosure. These figures reflect the actual costs incurred in the previous financial year and are updated in our Product Disclosure Statements (in print and online) around October each year.

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Why the changes and what does this mean for you?

For the financial year ending 30 June 2019, the investment fees and indirect costs for our investments options have changed. The differences shown below are based on the total investment fees and indirect costs for the investment options for the years ending 30 June 2018 and 30 June 2019. The amount that you will be charged in the current and subsequent financial years depends on the actual fees, costs and taxes incurred by the Trustee in managing the investment options. You should refer to the relevant Product Disclosure Statement for your membership category for more information about all the fees, costs and taxes that apply.

Accumulation 1, Accumulation 2, Personal Account and Defined Benefit Division (DBD) members with an accumulation component

 

YEAR ENDING 30 JUNE 2018

YEAR ENDING 30 JUNE 2019

 

OPTION

Investment fee %

Indirect costs %

TOTAL %1

Investment fee %

Indirect cost

TOTAL %1

Difference %2

Reason FOR CHANGE

Conservative 0.27 0.22 0.49 0.32 0.28 0.60 +0.12 Property operational costs
Conservative Balanced 0.29 0.25 0.54 0.34 0.30 0.64 +0.10 Property operational costs
Balanced 0.38 0.16 0.53 0.42 0.13 0.55 +0.01 Management fees
Sustainable Balanced 0.31 0.06 0.37 0.33 0.04 0.37 0.00 n.a
Growth 0.46 0.21 0.67 0.50 0.19 0.69 +0.02 Management fees
High Growth 0.48 0.19 0.67 0.51 0.16 0.67 0.00 n.a
Sustainable High Growth 0.36 0.06 0.42 0.38 0.04 0.42 0.00 n.a
Cash 0.14 0.06 0.20 0.14 0.04 0.18 -0.02 Management fees
Australian Bond 0.18 0.06 0.24 0.18 0.04 0.21 -0.03 Management fees
Diversified Credit Income 0.31 0.06 0.37 0.33 0.04 0.36 -0.01 Management fees
Listed Property 0.20 0.06 0.26 0.24 0.09 0.33 +0.07 Transactional costs
Australian Shares 0.50 0.24 0.74 0.37 0.33 0.70 -0.03 Management fees
International Shares 0.52 0.06 0.58 0.60 0.04 0.64 +0.06 Management fees
Global Environmental Opportunities 0.40 0.06 0.46 0.44 0.04 0.48 +0.01 Management fees and transactional costs
Australian Equity Income 0.36 0.06 0.48 0.45 0.04 0.42 +0.01 Management fees and transactional costs
Global Companies in Asia 0.42 0.06 0.48 0.45 0.04 0.48 +0.01 Management fees and transactional costs

1. Deducted from the returns of the investment option(s) you’re invested in. Components may not add due to rounding.
2. May not be exact due to rounding of components.

From 1 October 2019 we anticipate that there will be a decrease of the indirect costs by up to 0.02% on the basis that the funding of the Operational Risk Reserve will reduce from 0.03% to 0.01%, and that the investment fee for the Cash and Australian Bond options will decrease by up to 0.04%, although as the investment fees and indirect costs shown are estimates only, they may increase or decrease depending on the actual fees and costs incurred. You can read more in the Fees and costs booklet (PDF, 487KB).

If you’re a DBD member with an accumulation component, these changes to our investment fees and indirect costs are applicable to the relevant investment options your accumulation component is invested in.


Flexi Pension (non-TTR) and Term Allocated Pension members

 

YEAR ENDING 30 JUNE 2018

YEAR ENDING 30 JUNE 2019

 

OPTION

Investment fee %

Indirect costs %

TOTAL %3

Investment fee %

Indirect cost

TOTAL %3

Difference %4

Reason FOR CHANGE

Conservative 0.20 0.16 0.36 0.25 0.24 0.49 +0.14 Property operational costs
Conservative Balanced 0.22 0.19 0.41 0.27 0.26 0.53 +0.12 Property operational costs
Balanced 0.31 0.10 0.40 0.35 0.09 0.44 +0.04 Management fees
Sustainable Balanced 0.24 0.00 0.24 0.26 0.00 0.26 +0.02 Management fees
Growth 0.39 0.15 0.54 0.43 0.16 0.58 +0.05 Management fees
High Growth 0.41 0.13 0.54 0.44 0.12 0.56 +0.02 Management fees
Sustainable High Growth 0.29 0.00 0.29 0.31 0.00 0.31 +0.02 Management fees
Cash 0.07 0.00 0.07 0.09 0.00 0.09 +0.02 Management fees
Australian Bond 0.11 0.00 0.11 0.13 0.00 0.13 +0.02 Management fees
Diversified Credit Income 0.24 0.00 0.24 0.26 0.00 0.26 +0.01 Management fees
Listed Property 0.13 0.00 0.13 0.17 0.05 0.22 +0.09 Transactional costs
Australian Shares 0.43 0.18 0.61 0.30 0.29 0.60 -0.01 Management fees
International Shares 0.45 0.00 0.45 0.53 0.00 0.53 +0.08 Management fees
Global Environmental Opportunities 0.33 0.00 0.33 0.37 0.00 0.37 +0.04 Management fees and transactional costs
Australian Equity Income 0.29 0.00 0.29 0.32 0.00 0.32 +0.03 Management fees and transactional costs
Global Companies in Asia 0.35 0.00 0.35 0.38 0.00 0.38 +0.03 Management fees and transactional costs

3. Deducted from the returns of the investment option(s) you’re invested in. Components may not add due to rounding.
4. May not be exact due to rounding of components.


Flexi Pension - TTR members

 

YEAR ENDING 30 JUNE 2018

YEAR ENDING 30 JUNE 2019

 

OPTION

Investment fee %

Indirect costs %

TOTAL %5

Investment fee %

Indirect cost

TOTAL %5

Difference %6

Reason FOR CHANGE

Conservative 0.27 0.22 0.49 0.32 0.28 0.60 +0.12 Property operational costs
Conservative Balanced 0.29 0.25 0.54 0.34 0.30 0.64 +0.10 Property operational costs
Balanced 0.38 0.16 0.53 0.42 0.13 0.55 +0.01 Management fees
Sustainable Balanced 0.31 0.06 0.37 0.33 0.04 0.37 0.00 n.a.
Growth 0.46 0.21 0.67 0.50 0.19 0.69 +0.02 Management fees
High Growth 0.48 0.19 0.67 0.51 0.16 0.67 0.00 n.a.
Sustainable High Growth 0.36 0.06 0.42 0.38 0.04 0.42 0.00 n.a.
Cash 0.14 0.06 0.20 0.14 0.04 0.18 -0.02 Management fees
Australian Bond 0.18 0.06 0.24 0.18 0.04 0.21 -0.03 Management fees
Diversified Credit Income 0.31 0.06 0.37 0.33 0.04 0.36 -0.01 Management fees
Listed Property 0.20 0.06 0.26 0.24 0.09 0.33 +0.07 Transactional costs
Australian Shares 0.50 0.24 0.74 0.37 0.33 0.70 -0.03 Management fees
International Shares 0.52 0.06 0.58 0.60 0.04 0.64 +0.06 Management fees
Global Environmental Opportunities 0.40 0.06 0.46 0.44 0.04 0.48 +0.01 Management fees and transactional costs
Australian Equity Income 0.36 0.06 0.42 0.39 0.04 0.42 +0.01 Management fees and transactional costs
Global Companies in Asia 0.42 0.06 0.48 0.45 0.04 0.48 +0.01 Management fees and transactional costs

5. Deducted from the returns of the investment option(s) you’re invested in. Components may not add due to rounding.
6. May not be exact due to rounding of components.

For Flexi Pension - TTR members, from 1 October 2019 we anticipate that there will be a decrease of the indirect costs by up to 0.02% on the basis that the funding of the Operational Risk Reserve will reduce from 0.03% to 0.01%, and that the investment fee for the Cash and Australian Bond options will decrease by up to 0.04%, although as the investment fees and indirect costs shown are estimates only, they may increase or decrease depending on the actual fees and costs incurred. You can read more in the Your guide to pensions - Flexi Pension PDS (PDF, 2.4MB).

If you’re receiving income from a Flexi Pension – TTR, then these changes to our investment fees and indirect costs are also applicable to the relevant investment option(s) your accumulation account is invested in.