Guide To Fee Definitions
Superannuation law requires fund Product Disclosure Statements to quote their fees using standard definitions. This enables easier comparison of fees between funds.
The following table lists the different types of fees and their definitions.
|Investment fee||An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes:
|Administration fee||An administration fee is a fee that relates to the administration or operation of a superannuation entity and includes costs incurred by the trustee, or the trustees, of the entity that:
Note: currently the Manildra Group meets all costs of running the Fund, so you are not charged any administration fees.
|Buy-sell spread||A buy-sell spread is a fee to recover transaction costs incurred by the trustee, or the trustees, of a superannuation entity in relation to the sale and purchase of assets of the entity.|
|Switching fee||A switching fee is a fee to recover the costs of switching all or part of a member’s interest in a superannuation entity from one class of beneficial interest in the entity to another.
Note: The Fund does not charge any switching fees.
|Exit fee||An exit fee is a fee to recover the costs of disposing of all or part of members’ interests in a superannuation entity.
Note: The Fund does not charge any exit fees.
|Activity fee||A fee is an activity fee if:
Note: currently the Manildra Group meets all costs of running the Fund. You are not charged any activity fees.
|Advice fee||A fee is an advice fee if:
Note: the Trustee does not provide financial product advice, so advice fees are not relevant for the Fund.
|Insurance fee||A fee is an insurance fee if:
Note: the Manildra Group meets the cost of providing the Standard Insured Benefit (death/TPD insurance). Members meet the cost of premiums for income protection insurance and any additional voluntary death/TPD insurance cover. This is charged on a cost-recovery basis.
1Definitions are quoted from section 29V of the Superannuation Industry (Supervision) Act 2001
Funds also disclose the Indirect Cost Ratio for a fund (or investment option or MySuper product within a fund). This is the ratio of the total indirect costs to the total average net assets for the fund (or investment option).
Indirect costs, as defined in the Corporations Regulations, are:
“any amount that:
(a) a trustee of the entity knows, or reasonably ought to know, will directly or indirectly reduce the return on the investment of a member of the entity in the MySuper product or investment option; and
(b) is not charged to the member as a fee.”