As foreshadowed in October 2017, Super SA’s indirect investment fees and costs are being reported differently in the 2017-18 Annual Statements and Fees and Costs fact sheets.

This is as a consequence of new regulations (RG 97) which came into effect across the whole superannuation sector on 30 September 2017.

Fees have not increased. However, the extent to which estimated indirect investment fees are now required to be disclosed by all super funds, has been expanded. They now include investment management costs incurred through underlying investment vehicles (referred to as interposed investment vehicles) plus transaction and operating costs.

The table below shows the investment cost components reflected in the Indirect Cost Ratio (ICR). The ICR expresses the investment costs as a percentage of average funds managed.

Investment cost components included in the ICR are as follows:

Fee disclosure

Investment cost component

Previous cost disclosure

2016-17

New cost disclosure

2017-18

Indirect cost ratio (excluding Performance fees and Transactional and operational costs)

 √

(× Did not include interposed investment vehicle costs)

 √

(√ Includes interposed investment vehicle costs)

Performance fees

Transactional and operational costs

NEW DISCLOSURE

×

 

In addition, investment related borrowing costs and property operating costs are now separately referenced. All these costs are deducted from the assets of the investment option and reflected in the unit price. Returns reported by Super SA are net of all investment costs.

Please note that the estimated indirect investment fees shown on your statement are not deducted from your member account. All investment related fees and costs are deducted from investment assets before returns are determined.

The Fees and Costs fact sheet for each scheme/product contains additional information.