When shopping around for a super fund, people usually compare investment returns, but often don’t compare fees and costs. The difference in fees and costs can be astounding – in some cases you can save thousands of dollars over the life of your super. It’s important to check where your fees are going as well. Are they paid to administer the fund or will some of your fee also provide a profit to shareholders? CareSuper is a profits-for-members fund, so investment earnings are put back into the fund for the benefit of members.
For detailed information on fees, please read Fees and other costs.
|Type of fee||Amount||How and when paid|
$1.50 per week
0.19%1 of your account balance per year (a cap of $500 per year applies)
Calculated weekly or on full withdrawal. Deducted monthly from your account or on full withdrawal.
Calculated monthly or on full withdrawal. Deducted monthly from your account or on full withdrawal.
|Switching fee||$0||Not applicable, however, buy and/or sell spreads and activity fees may apply depending on the investments you choose.|
|Exit fee||$40||Applies to all partial and full withdrawals out of the Fund, but not transfers from one CareSuper account to another (such as a CareSuper pension account). This fee or withdrawal amount is deducted from your account at the time of withdrawal.|
|Advice fees relating to all members investing in a particular MySuper product or investment option||$0||Not applicable, however, advice fees are included in the administration fee. Additional advice fees relating to more complex personal advice may apply to individual members.|
|Other fees and costs2||Various||Deducted from your account where applicable.|
1 The percentage-based administration fee is an estimate only based on administration costs for the 2016/17 financial year.
2 Other fees and costs, such as activity fees, advice fees for personal advice or insurance fees, may apply. Refer to Fees and costs for further information.
Investment fees, indirect cost ratios and buy–sell spreads
While the Trustee’s focus is on net returns, minimising investment costs is an ongoing goal for CareSuper. CareSuper has always sought to demonstrate best practice and transparency around disclosure of all costs, including those relating to investments.
Investment fee for CareSuper’s Managed and Asset Class investment options
The investment fee is a percentage of assets per year, depending on the investment option.
|Investment option||Investment fee|
These fees are not deducted from your account. They are deducted from the fund’s assets and are reflected in the weekly unit prices for each of the investment options. The amounts shown are estimates only based on investment costs for the 2016/17 financial year.
Investment fee for the Direct Investment option
The investment fee for the Direct Investment option is nil, however, other fees apply to the exchange-traded funds (ETFs) or listed investment companies (LICs) you may select via this option.
Indirect cost ratio (ICR) for CareSuper’s Managed and Asset Class investment options
The ICR is a percentage of assets per year, depending on the investment option.
The ICR is not deducted from your account. It is deducted from investment returns received from, or assets of, underlying investment vehicles and reflected in the unit prices for each of the investment options. The amounts shown above are estimates only based on indirect costs for the 2016/17 financial year.
Indirect cost ratio (ICR) for the Direct Investment option
The ICR of the Direct Investment option is nil, however, fees apply to the ETFs or LICs you may select via this option. These fees are not considered to be an ‘indirect cost’ under superannuation regulations, however, they can have an impact on your investment.
To ensure equity among all members, a buy–sell spread may apply on transactions affecting a member’s account (including contributions, investment switches, fee deductions and withdrawals). The purpose of a buy–sell spread is to ensure all transaction costs incurred in buying or selling assets are fairly allocated to those members who transact in a Managed or Asset Class investment option.
This means that members who transact in these options incur the cost of buying and selling the corresponding assets.
The buy–sell spread is the difference between the purchase and sale price of a unit in a Managed or Asset Class investment option.
The buy–sell spread cost is an additional cost that is not deducted from your account, but is reflected in the unit price. If you invest in or money is taken out of a Managed or Asset Class investment option, you will incur the spread shown below.
|Investment option||Buy–sell spread|
Fees specific to investments in the Direct Investment option
The Direct Investment option allows you to invest your super in a range of listed securities and term deposits. Read Fees and costs to view the full details of all the fees and costs that may apply to the Direct Investment option.
|Type of fee||Amount and frequency|
|Direct Investment option administration fee||
$25 per month.
|Direct Investment option brokerage fees||
Brokerage is an additional fee paid at the time of trade and applies to all listed security trades.
Brokerage will either be:
Fee for breaking a term deposit prior to maturity
If you hold a term deposit in the Direct Investment option and you request to break it before it matures, the term deposit provider may charge a fee or reduce the interest you receive. Contact CareSuper to find out more about the specific fee or interest reduction that may be charged by a particular term deposit provider.
A request to break a term deposit before it matures is subject to the approval of the term deposit provider and the Term Deposit Terms and Conditions (available through Direct Investment Online). A notification period may be required which, combined with processing times, may result in a significant time before you can access your funds. Any request to break a term deposit before the agreed maturity date must be made directly to CareSuper in writing.
Find out more about breaking a term deposit in the Investment Guide.
|Tax calculation fee||$150 one-off fee applies if you request that CareSuper calculates any tax adjustments you are owed when you sell your investments in the Direct Investment option and leave CareSuper before the end of financial year tax adjustment.|
Effective as at 30 September 2017