Changes to disclosure of investment fees and costs

From 1 October 2017, the Australian Securities and Investments Commission (ASIC) requires all super funds to change the way they disclose fees and costs to members.

ASIC introduced these changes with the aim of creating more transparency and consistency in the way super funds describe their fees and costs, and ultimately, allow you to compare funds and products more easily.

Do these changes mean I am paying more in fees?

There are no new fees or charges, and there are no changes to the way you are charged. The only change is to the way our existing fees and costs are disclosed to you.

At Vision Super, we do not directly charge you a fee for investing your super. The expenses relating to the investment management of Vision Super’s assets are deducted from the pool of invested funds, before earnings are allocated to individual member accounts.

These investment expenses include base and performance fees paid to investment managers and advisers, management fees charged in funds/trusts, transaction costs incurred by investment managers, asset consulting fees, bank fees and custodian fees, internal Vision Super costs related to the management of the fund’s assets, and an amount associated with funding Vision Super’s general and operational risk reserves.

This does not change under the new fee and cost disclosure rules.

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What is disclosed differently from 1 October 2017?

Prior to 1 October 2017, we disclosed investment expenses as ‘costs’ to the member via the Indirect Cost Ratio (ICR). The ICR was calculated each year based on the past year’s investments expenses. It is disclosed in the fees and costs table available in the Product Disclosure Statement (PDS), the Fees and Costs - additional guide and the Vision Super website. We disclosed look through fees (fees incurred where Vision Super invest in a product that then invests in another product - these fees are the cost of that underlying product) as a note to the fees and costs table.

After 1 October 2017, as per ASIC’s new requirements, the fees and costs tables for each investment option shows an ‘Investment fee’, also calculated based on investment expenses incurred over the previous year instead of the ICR. This is not a new fee, however, it now includes additional costs not previously disclosed, including 'look through' fees.

In addition, detail on investment fees and costs is provided under the 'Additional explanation of fees and costs'. The new disclosure provides a closer look at the fees charged and costs incurred by our investment managers to invest your money.

 

We’re here to help

If you need any help understanding your Vision Super account and fees, please call our friendly member services team on 1300 300 820.

 

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