2019 Fee Changes – FAQs

We recently sent an email or a letter to all of our members, outlining some upcoming fee changes.  You can find answers to some commonly asked questions below. If you have a question that isn’t answered below, you can contact us.

Why are fees changing?

We recently completed a comprehensive review of our investment options, which included a thorough review of the fees that we need to charge to provide these options and other services to our members.  As a result, we are introducing some new investment options on 1 July 2019, and our fees are changing.

Our overall desire is to keep fees simple, transparent and as low as possible for our members, which is why we’ve avoided introducing complex fees like buy/sell spreads that are charged by some other superannuation funds.

How does Christian Super work out how much to charge in fees?

As a profit-to-members fund, we regularly review the services we offer our members vs the fees required to deliver these services.  Our aim is to keep fees as low as possible, while still providing excellent service to our members.

Following our latest fee review, we are pleased that we have been able to decrease the overall fees collected from members, without reducing the level of service provided.  This is a great outcome for our members and the direct result of the strong growth we have experienced as a fund.

What fees are changing?

The fixed administration fee is being reduced from $1.75 to $1.25 per week.

The variable administration fee is being increased from 0.20% to 0.27% of your account balance.

The total of the investment fee and indirect cost ratio is being reduced for each investment option.  Note that some of the names of our investment options are also changing on 1 July 2019, these name changes are also shown below:

For Non-Pension Members
Current Investment Option Name Current Investment Fee & Indirect Cost Ratio New Investment Option Name New Investment Fee & Indirect Cost Ratio
Ethical High Growth 0.99% Ethical High Growth 0.84%
MyEthicalSuper 1.04% My Ethical Super 1.00%
Ethical Balanced 1.06% Ethical Conservative Balanced 0.99%
Ethical Stable 1.06% Ethical Stable 0.92%
Ethical Cash 0.36% Ethical Cash 0.17%
For Pension Members
Current Investment Option Name Current Investment Fee & Indirect Cost Ratio New Investment Option Name New Investment Fee & Indirect Cost Ratio
Ethical High Growth 0.99% Ethical High Growth 0.81%
Ethical Growth 1.04% Ethical Balanced Growth 1.00%
Ethical Balanced 1.06% Ethical Conservative Balanced 0.99%
Ethical Stable 1.06% Ethical Stable 0.91%
Ethical Cash 0.36% Ethical Cash 0.17%

We are removing the exit fee (previously $52).  The good news is that all superannuation funds will remove their exit fees by 1 July 2019, so you will no longer pay this fee if you decide to consolidate all of your super into your Christian Super account!

Finally, we are introducing a 3% fee cap for members with an account balance of $6,000 or less.  This fee cap includes administration fees, the investment fee and indirect cost ratio but not insurance premiums.

When are fees changing?

The new fees are effective from 1 July 2019.

Are my fees going to increase as a result of these changes?

Fees will decrease for the majority of Christian Super members.  The table below shows the annual fee change for a member with a $50,000 balance in our default My Ethical Super option:

Fee Type Current Fee New Fee Difference
Fixed Administration Fee $91 $65 -$26
Variable Administration Fee $100 $135 +$35
Investment Fee & Indirect Costs $520 $500 -$20
Total Fee $711 $700 -$11

Is it easy to work out what my new fees will be?

To calculate your approximate annual fees, use the following formula:

  • A fixed administration fee of $65,
  • Plus a variable administration fee of 0.27% of your account balance (capped at $1,346 p.a.),
  • Plus the combined investment fee and indirect cost ratio for the investment option you have chosen, multiplied by your account balance.

For example:

If you had $50,000 invested in My Ethical Super, your approximate annual fees would be:

  • A fixed administration fee of $65,
  • Plus a variable administration fee of $135 (i.e. 0.27% x $50,000),
  • Plus a combined investment fee and indirect cost ratio of $500 (i.e. 1.0% x $50,000).

The total of the above is $700, of which $500 has already been deducted before you receive your net investment returns and $200 is deducted from your account balance.

You can contact our Member Care Team if you’d like us to help you estimate your new annual fees.

When and how are fees deducted?

The fixed administration fee is deducted from your account each month.  Most months 4 x $1.25 will be deducted (i.e. $5.00) but 3 months per year 5 x $1.25 will be deducted (i.e. $6.25).  The total fixed administration fee that you will be charged each year will be $65.

The variable administration fee will also be deducted from your account each month.  The monthly fee is calculated as follows: 0.27% divided by 12, multiplied by your account balance each month.

The investment fee and indirect costs have already been deducted before you receive your net investment returns, not from your account balance.  Note that investment returns do not appear as a transaction in your MemberAccess account, but you will be able to see these on your member statements that you receive each twice a year.

What if I have a small account balance – will it get eaten up by fees?

To help minimise the likelihood that smaller account balances will be eaten up by fees, all superannuation funds are introducing a 3% fee cap for members with an account balance of $6,000 or less from 1 July 2019. At Christian Super, this fee cap includes administration fees, the investment fee and indirect costs but not insurance premiums.

For example:

If you had $1,000 invested in My Ethical Super, your annual fees (excluding insurance premiums) would be capped at $30.  Without a fee cap, you would be charged $77.70 p.a.

Is anything else changing on 1 July 2019?

Yes – we are introducing some new investment options including an Ethical Index Shares option.  More details will be shared with our members in June.