Income Stream fees as at 1 January 2010
Did you know?
Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30-year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs.
To find out more
If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website ( http://www.fido.asic.gov.au/) has a superannuation fee calculator to help you check out different fee options. |
This document shows fees and other costs that you may be charged by First State Super. These fees and costs may be deducted from your money, from the
returns on your investment or from the fund assets as a whole. Taxes are set out in other parts of the website. You should read all the information about fees and costs because it is important to understand their impact on your investment.
Fees and costs for particular investment options are set out in Additional explanation of fees and costs.
| Type of Fee or Cost |
Amount |
How and when paid |
| Fees when your money moves in or out of the Fund |
Establishment fee
The fee to open your investment. |
Nil. |
Not applicable. |
Contribution fee
The fee on each amount contributed to your investment – either by you or your employer. |
Nil. |
Not applicable. |
Withdrawal fee
The fee on each amount you take out of your investment. |
Income stream payments – nil
Lump sum payments:
$36
|
Deducted from your income stream account each time a lump sum payment is made (including transfers and rollovers to another fund) and for
transfers made in accordance with an excess contributions tax release authority. If you are invested in a number of options, the fees are
deducted on a pro-rata asis from each option
before the withdrawal is made. |
Termination fee
The fee charged to close your investment. |
Nil. |
Not applicable.
|
| Management Costs |
|
Administration: The fees and costs for managing your investment.
|
Administration fee
$52 per year ($1 per week)
PLUS
0.20% pa. ($100 per $50,000)
PLUS
|
There is an administration fee which is deducted
from your income stream account [in arrears] at
the monthly anniversary of the date on which your
income stream commenced (including the month
you leave).
The amount deducted each month is $4.33
(equivalent to $1 each week) plus the monthly
equivalent of 0.20% pa. of the value of your income stream account at the monthly anniversary of the date on which your income stream commenced.
If you are invested in a number of options, the fees are deducted on a pro-rata basis from each option.
|
For the amount you pay for specific investment options, click here.
|
Investment management fee
A percentage currently estimated to range, depending on the investment option selected, from 0.05% pa. ($25 per $50,000) to 0.54% pa. ($270 per $50,000).
|
The percentage amounts are estimates of
investment management fees which reflect the
actual expenses incurred, including the fees paid to asset consultants, investment managers, the custodian and other costs directly related to managing the investments of the Fund.
The investment management fees are deducted from the assets of the option before the unit price for an investment option is determined.
|
| Service Fees* |
|
Investment switching fee
The fee for changing investment options.
|
First switch in a financial year: Nil.
Subsequent switches: $25 per switch.
|
Deducted from your income stream account at
the time of the switch. If you are invested in a
number of options, the fees are deducted on
a pro-rata basis from each affected option before
the switch is made. |
*Family law fees and 'no TFN' tax recovery fees may also apply. See additional explanation of fees and costs.
Example of annual fees and costs for a balanced investment option
The law requires all superannuation trustees to set out an example of annual fees and costs for a balanced investment option, being an investment option which has the ratio of investment in growth assets to investment in defensive assets as close as practicable to 70:30. The example below allows you
to compare balanced investment options in different superannuation funds, regardless of what they are called.
First State Super’s investment option which meets the definition of a balanced investment option is the Diversified investment option and an example of annual fees and costs for that option is set out below. This table gives an example of how the fees and costs in the balanced investment option for this product can
affect your superannuation investment over a one-year period. You should use this table to compare this product with other superannuation products.
| EXAMPLE — the balanced investment option (the Diversified investment option)1 |
Balance of $50,000 during the year |
| Management Costs3 |
0.46%3 + $52 |
For every $50,000 you have in the Fund you will be charged $230 each year plus $52 in administration fees regardless of your balance. |
EQUALS
Cost of Fund |
|
If your balance was $50,000, then for that year you will be charged fees of $2822.
What it costs you will depend on the investment option you choose and the fees you negotiate with your fund or financial adviser4.
|
1 The Fund’s investment option which meets the definition of a “balanced investment option” is the Diversified investment option.
2 Additional fees may apply: Establishment fee – Nil. And, if you leave the Fund, you will be charged a withdrawal fee of $36.
3 This percentage amount is the investment management fee of 0.26% for the Diversified option for the period ended 31 December 2009 plus the 0.20% pa. administration fee. See the page Additional explanation of fees and costs.
4 Management costs cannot be negotiated in First State Super.
Note: The above example is illustrative only and is based on the factors indicated. It should not be taken to provide an estimate of the management costs that would be payable in respect of your account.
More about First State Super's fees and costs
|
