Fee changes to our investment options—significant event notification

November 2018

We’re clarifying the recent increase to the investment fees and costs for the four options we wrote to you about in August 2018.

When we first wrote to you, we didn’t clearly distinguish what years the fees related to. The following tables show the fees and costs for the most recent financial year ending 30 June 2018, as well as the previous year.

Importantly none of the figures have changed since our first communication and there's nothing you need to do.

Fees for Accumulation 1, Accumulation 2, Personal Account and transition to retirement memberships

 

FINANCIAL YEAR ENDING 2017

FINANCIAL YEAR ENDING 2018

 
 

Investment fees

Indirect costs

Fees and costs

Investment fees

Indirect costs

Fees and costs

Reason

Conservative 0.27 0.18 0.45 0.27 0.22 0.49 Change in property operating costs
Australian Shares 0.46 0.18 0.63 0.50 0.24 0.74 Change in external management fees and brokerage fees resulting from the movement of funds between managers
International Shares 0.37 0.06 0.43 0.52 0.06 0.58 Change in external management fees and brokerage fees resulting from the movement of funds between managers
Global Environmental Opportunities 0.24 0.06 0.30 0.40 0.06 0.46 We’ve moved from passive to more active portfolio management

The fees and costs shown above are based on the fees and costs for the investment options for the years ending 30 June 2017 and 30 June 2018. The amount that you will be charged in subsequent financial years depends on the actual fees, costs and taxes incurred by the Trustee in managing the investment options.

From 1 October 2018 there was an increase in the investment fee of an additional 0.03% and a reduction of the ICR of 0.03% on the basis that the funding of the Operational Risk Reserve reduced from 0.06% to 0.03%. You can read more in our Fees and costs booklet (1.4MB).

Fees for Flexi Pension memberships

 

FINANCIAL YEAR ENDING 2017

FINANCIAL YEAR ENDING 2018

 
 

Investment fees

Indirect costs

Fees and costs

Investment fees

Indirect costs

Fees and costs

Reason

Conservative 0.20 0.12 0.32 0.20 0.16 0.36 Change in property operating costs
Australian Shares 0.39 0.12 0.50 0.43 0.18 0.61 Change in external management fees and brokerage fees resulting from the movement of funds between managers
International Shares 0.30 0.00 0.30 0.45 0.00 0.45 Change in external management fees and brokerage fees resulting from the movement of funds between managers
Global Environmental Opportunities 0.17 0.00 0.17 0.33 0.00 0.33 We’ve moved from passive to more active portfolio management

The fees and costs shown above are based on the fees and costs for the investment options for the years ending 30 June 2017 and 30 June 2018. The amount that you will be charged in subsequent financial years depends on the actual fees, costs and taxes incurred by the Trustee in managing the investment options. From 1 October 2018 there was an increase in the investment fee of an additional 0.03%. You can read more in our Flexi Pension Product Disclosure Statement (PDF, 2.4MB).

What happened?

When we originally informed you of this change, we should have clearly explained the difference between the updated information being incorporated into our Product Disclosure Statements for 1 October 2018 (which related to the financial year ending 30 June 2018) and the information being disclosed prior to October (which related to the financial year ended 30 June 2017).

We also previously advised that from 1 October 2018, there would be a 0.03% reduction on the Indirect Credit Ratio (ICR) because the funding of the Operational Risk Reserve (ORR) would reduce from 0.06% to 0.03%. This is correct for accumulation members but not Flexi Pension members. The funding of the ORR doesn’t affect Flexi Pension members.

Find out more

Read about the rest of our investment options.

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