Fee Changes 1 July 2022

You can find answers to frequently asked questions about fees below. If you have a question that we haven’t answered, you can contact us.

 

How does Christian Super calculate how much to charge in fees?

Christian Super is a profit-to-members fund. This means we don’t pay dividends to shareholders, and any surpluses we make year to year are either redeployed to improve services provided to members, or we pass them onto our members as fee savings.

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.

 

What fees are changing?

The fixed administration fee of $1.25 per week will not change.

The variable administration fee of 0.23% of your account balance (capped at $1,500 p.a.) will not change.

The investment fee is increasing for each diversified investment option (further details are in the tables below).

The indirect cost ratio for each investment option is increasing for each diversified investment option (further details are in the tables below).

Note that the investment fee and indirect costs have already been deducted before you receive your net investment returns, and are not deducted from your account balance. The fees that are deducted from your account each month are not changing.  

For Superannuation Members
Investment Option Name Current Investment Fee & Indirect Cost Ratio New Investment Fee & Indirect Cost Ratio
My Ethical Super 0.34% + 0.52% 0.39% + 0.57%
Ethical Index Shares 0.33% + 0.04% 0.34% + 0.03%
Ethical High Growth 0.42%+ 0.40% 0.49% + 0.42%
Ethical Growth Plus 0.40% + 0.53% 0.45% + 0.55%
Ethical Balanced Growth 0.38% + 0.54% 0.43% + 0.61%
Ethical Conservative Balanced 0.40% + 0.46% 0.44% + 0.51%
Ethical Stable 0.40% + 0.40% 0.43% + 0.42%
Ethical Cash 0.23% + 0.00% 0.23% + 0.00%

 

For Pension Members
Investment Option Name Current Investment Fee & Indirect Cost Ratio New Investment Fee & Indirect Cost Ratio
Pension Ethical Index Shares 0.37% + 0.04% 0.38% + 0.03%
Pension Ethical High Growth 0.46% + 0.35% 0.53% + 0.36%
Pension Ethical Growth Plus 0.44% + 0.51% 0.49% + 0.55%
Pension Ethical Balanced Growth 0.43% + 0.52% 0.48% + 0.57%
Pension Ethical Conservative Balanced 0.44% + 0.43% 0.49% + 0.48%
Pension Ethical Stable 0.43% + 0.40% 0.46% + 0.41%
Pension Ethical Cash 0.27% + 0.00% 0.27% + 0.00%

 

What is the Investment Fee and Indirect Cost Ratio?

The investment fee is charged to cover the cost to Christian Super of managing your investments, including amounts we pay to external investment managers, asset consultants, custodians and internal costs.  The indirect cost ratio is made up of underlying costs incurred by your investments, rather than costs incurred by Christian Super, including operating and transaction costs charged by external investment managers.

 

When are fees changing?

The new fees are effective from July 2022.

 

Why are fees changing?

In response to changing market conditions, we’ve made some adjustments to our asset allocation percentages. As a result, Christian Super’s recent investment performance has been very strong – all of our diversified investment options were ranked in the top 10 vs other super funds for the 12 months ending 31 March 2022.*

 

Are my fees going to change?

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 $65 $65 No change
Variable Administration Fee $115 $115 No change
Investment Fee $170 $195 $25 more
Indirect Cost Ratio $260 $285 $25 more
Total Fees and Costs $610 $660 $50 more

 

How can I calculate 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 0.23% of your account balance (capped at $1,500 p.a.),
  • Plus the combined investment fee and indirect cost ratio for the investment option you have chosen (available in the tables further up on this page), 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 $115 (i.e. 0.23% x $50,000),
  • Plus a combined investment fee and indirect cost ratio of $480 (i.e. [0.39% + 0.57%] x $50,000).

The above total is $660, of which $480 has already been deducted before you receive your net investment returns, and $180 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.

 

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

To help minimise the likelihood that smaller account balances are eaten up by fees, all superannuation funds have introduced a 3% fee cap for members with an account balance of $6,000 or less. At Christian Super, this fee cap includes administration fees, the investment fee and indirect costs, but excludes 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 (i.e. 3% x $1,000).  Without a fee cap, you would be charged $76.90 p.a.

 

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 four 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: 0.23% 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, and are not deducted from your account balance.  Note that investment returns do not appear as a transaction in your online MemberAccess account, however these are viewable on your Annual Member Statement. 

* Source: SuperRatings. Investment options have been ranked vs options with a similar percentage of growth assets offered by other super funds.