Income Stream fees as at 30 June 2008
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 table shows fees and other costs that you may be charged. These fees and costs may be deducted from your income stream account, from the returns on your investment or from the Fund’s 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 strategies 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 the amount
contributed to your investment. |
Nil. |
Not applicable. |
Withdrawal fee
The fee on each amount you take out of your investment. |
Income stream payments – nil
Lump sum
withdrawals – $30
|
Deducted from your income stream account each
time a lump sum benefit is paid (including transfers and rollovers to another fund and for payments made as a result of a release authority). If you are invested in a number of strategies, the fees are deducted on a pro-rata basis from each strategy before the withdrawal is made. |
Termination fee
The fee to close your
investment. |
Nil. |
Not applicable.
|
| Management Costs |
|
The fees and costs for
managing your investment.
|
$52 per year
($1 per week)
Plus 0.20% pa
($100 per $50,000)
PLUS
|
The administration fee 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 strategies,
the fees are deducted on a pro-rata basis
from each strategy.
|
For the amount you pay for specific investment strategies, click here.
|
Investment management expense
A percentage currently
estimated to range,
depending on the
investment strategy
selected, from:
0.05% pa
($25.00 per $50,000)
to 0.48% pa
($240.00 per $50,000).
|
The percentage amounts are estimates of investment management expenses 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 expenses are deducted before the unit price for an investment strategy is determined.
|
| Service Fees* |
|
Investment switching fee
The fee for changing investment strategies.
|
First switch in 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 strategies, the fees are deducted on a pro-rata basis from each strategy 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 the Diversified investment strategy
This table gives an example of how the fees and costs in the Diversified investment strategy in this product can affect your 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 strategy)1 |
Balance of $50,000 |
| Management Costs3 |
0.50%3 + $52 |
For every $50,000 you have in the Fund you will be charged $250 each year, plus $52 in administration fees regardless of your balance. |
EQUALS
Cost of Fund |
|
If during a year your balance was $50,000, then for that year you will be charged fees of $3022
What it costs you will depend on the investment strategy you choose
and the fees you negotiate with your fund or financial adviser.4
|
1 The Fund’s investment strategy which meets the definition of a ‘balanced investment option’ is the Diversified investment strategy
2 Additional fees may apply: Establishment fee – Nil
And, if you leave the Fund, you will be charged a withdrawal fee of $30.
3 This percentage amount is the investment management expense for the Diversified strategy for the period ended 30 June 2008 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 income stream.
More about First State Super's fees and costs
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