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.

Fee Type Description
Investment fee An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes:

  • (a) fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and
  • (b) costs incurred by the trustee, or the trustees, of the entity that:
    • (i) relate to the investment of assets of the entity; and
    • (ii) are not otherwise charged as an administration fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.
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:

  • (a) relate to the administration or operation of the fund; and
  • (b) are not otherwise charged as an investment fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

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:

  • (a) the fee relates to costs incurred by the trustee, or the trustees, of a superannuation entity that are directly related to an activity of the trustee, or the trustees:
    • (i) that is engaged in at the request, or with the consent, of a member; or
    • (ii) that relates to a member and is required by law; and
  • (b) those costs are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee, an exit fee, an advice fee or an insurance fee.

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:

  • (a) the fee relates directly to costs incurred by the trustee, or the trustees, of a superannuation entity because of the provision of financial product advice to a member by:
    • (i) a trustee of the entity; or
    • (ii) another person acting as an employee of, or under an arrangement with, a trustee or trustees of the entity; and
  • (b) those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an insurance fee.

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:

  • (a) the fee relates directly to either or both of the following:
    • (i) insurance premiums paid by the trustee, or the trustees, of a superannuation entity in relation to a member or members of the entity;
    • (ii) costs incurred by the trustee, or the trustees, of a superannuation entity in relation to the provision of insurance for a member or members of the entity; and
  • (b) the fee does not relate to any part of a premium paid or cost incurred in relation to a life policy or a contract of insurance that relates to a benefit to the member that is based on the performance of an investment rather than the realisation of a risk; and
  • (c) the premiums and costs to which the fee relates are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an advice fee.

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.”