Changing how we display fees

Changing how we display fees

From 30 September 2017, all super funds were required to change the way fees are disclosed. As a result, CareSuper changed the fee tables in our product disclosure statements (PDSs) and on our website.

How do these changes affect the fees CareSuper’s members pay?

The new requirements don’t have any impact on members’ accounts or their returns. We did not increase our existing fees or introduce any new fees.

What’s changed?

  • We’re now required to show an investment fee for each of our Managed and Asset Class investment options. Under the new rules, CareSuper must include some fee and cost information that was previously part of our indirect cost ratio (ICR) into our investment fee.
  • Members might also notice that we’re now mentioning new costs in our PDSs, such as transaction costs (for example brokerage when buying and selling shares), property operating costs and borrowing costs. These fees and costs aren’t new – they existed as underlying costs in the past but super funds weren’t required to disclose them. Although they are new costs in terms of disclosure, there’s no impact to the net returns our members receive as these costs were always included in our returns. These fees aren’t directly deducted from your account balance – they continue to be deducted from unit prices (as they were in the past).

Why were these fee disclosure changes introduced?

One of the government bodies that regulates the super industry – the Australian Securities and Investment Commission (ASIC) – introduced new fee disclosure requirements to enhance super fund disclosure and make it easier for members to compare different super products. These changes were part of ASIC’s Regulatory Guide 97 (or ‘RG97’ for short).

Before and after example for CareSuper’s Balanced option

This chart shows the difference in fees CareSuper disclosed before and after 30 September 2017. It’s based on our Balanced (MySuper) option’s return of 11.7% for 2016/17 and assumes an account balance of $50,000.

Before and after example for CareSuper’s Balanced option

Net return
The net return from CareSuper's Balanced (MySuper) option after all fees and costs from have been deducted from gross returns generated by underlying investments

ICR not disclosed
The proportion of the ICR that was not previously required to be disclosed however existed as an underlying cost

Investment fee
Investment fees paid directly from CareSuper's assets

ICR disclosed
The ratio of the total of all indirect costs for the Balanced (MySuper) option against the total average net assets for the period

Administration fee
Fees relating to the administration of members' accounts

Find out more

Take a detailed look at our fees and costs:

You can also read our frequently asked questions for more information.