© 2012 FSS Trustee Corporation ABN 11 118 202 672, AFSL 293340, the trustee of the First State Superannuation Scheme ABN 53 226 460 365. Please click on the links on the right hand side to the general advice warning and conditions of use for this website.
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How much do you save by having an account with First State Super? How much a person a saves in fees each year by having an account with First State Super depends on things like:
To help members easily compare fees, a report was prepared by research company, Chant West (see the important notes below), to look at the average annual management costs of a number of different types of super funds. Chant West then compared these average costs to the cost of having an account with First State Super. For the results see the tables below. 
Important notes 1. Fees are an important feature of a superannuation fund. However, when considering superannuation, a person should consider all features offered by a fund.2. Source: The First State Super Fee Comparison Report was commissioned by the FSS Trustee Corporation and prepared by Chant West Pty Limited ABN 75 077 595 316 (www.chantwest.com.au). The Report provides a comparison of the fees charged by First State Super with the fees charged by other major superannuation funds in the Australian market. The management costs compared included administration and investment costs for the multi-manager growth option (61-80% growth assets) (excluding adviser commissions). Report based on an analysis of major funds: 14 retail master trusts, 8 industry funds, 5 public sector funds 3. The data provided by Chant West is based on information supplied by third parties. While such information is believed to be accurate, Chant West does not accept responsibility for any inaccuracy in such information. Past performance is not a reliable indicator of future performance. Any ratings that form part of the data provided by Chant West are subjective ratings only. The data provided by Chant West does not contain all of the information that is required in order to evaluate the nominated service providers, and you are responsible for obtaining such further information. The data provided by Chant West does not constitute financial product advice. However to the extent that this data may be considered to be general financial product advice, Chant West warns that: (a) Chant West has not considered any individual person’s objectives, financial situation or particular needs; (b) individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation; and (c) individuals should obtain a product disclosure statement from the relevant fund provider before making any decision about whether to acquire a financial product from that fund provider. A Financial Services Guide has been made available by Chant West through its website at www.chantwest.com.au. 4. The costs indicated provide a comparison of the average management costs for retail master trusts, industry funds and public sector funds against the total management costs for First State Super. The costs indicated above and in the Report were calculated using the following assumptions: • Investment returns – 8% pa before tax for the multi-manager growth option (61-80% growth assets) • Income tax – 15% • Income tax on investment earnings – Chant West assumed 60% of the investment return is not taxable due to franking credits, etc, resulting in an effective tax rate of 6% • GST – 10% • Reduced Input Tax Credit (RITC) – 75% • Contributions – Chant West assumed concessional contributions of $7,000 pa, being an estimate of contributions payable on an average salary • Investment income – investment income is calculated by multiplying the assumed rate of investment income by the average investment balance. The average investment balance is the opening balance plus one half of the regular contributions net of any applicable fees and income tax less an estimate of managements costs for the year • Fees – those fees that are based on the member's account balance have been calculated by multiplying the percentage fee by the member's average account balance. The average account balance is the average investment balance plus one half of that year's investment income net of income tax • Adviser commissions – fees have been calculated on a nil commission basis. For products that have commissions built into the standard fees, Chant West has reduced the standard fees by the standard adviser commissions (net of GST & RITC). 5. The Report states that there is almost universal non-disclosure of underlying manager fees (base fees and performance fees) in fund-of-funds type investment (such as private equity, infrastructure and hedge funds). This can materially understate the true cost of these investments and the true costs of the fund as well. 6. This communication contains general advice only, not personal advice. This information has been prepared without taking into account your objectives, financial situation or needs. FSS Trustee Corporation recommends that, before you make any financial decision regarding the First State Super product you are considering investing in or currently hold (as the case may be), you seek professional advice from a suitably qualified adviser. |