Fee Changes – FAQs

Please note: The following information relates to fee changes effective 1 October 2020.

We recently sent an email or a letter to 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.

 

What fees are changing?

The total of the combined investment fee and indirect cost ratio is changing for each investment option.

For Non-Pension Members
Investment Option Name Current Investment Fee & Indirect Cost Ratio New Investment Fee & Indirect Cost Ratio
My Ethical Super 1.00% 0.89%
Ethical Index Shares 0.38% 0.33%
Ethical High Growth 0.84% 0.87%
Ethical Growth Plus 1.02% 0.98%
Ethical Balanced Growth 1.02% 0.97%
Ethical Conservative Balanced 0.99% 0.89%
Ethical Stable 0.92% 0.81%
Ethical Cash 0.17% 0.19%

 

For Pension Members
Investment Option Name Current Investment Fee & Indirect Cost Ratio New Investment Fee & Indirect Cost Ratio
Pension Ethical Index Shares 0.38% 0.37%
Pension Ethical High Growth 0.81% 0.84%
Pension Ethical Growth Plus 0.97% 1.01%
Pension Ethical Balanced Growth 1.00% 0.98%
Pension Ethical Conservative Balanced 0.99% 0.91%
Pension Ethical Stable 0.90% 0.84%
Pension Ethical Cash 0.17% 0.23%

Note that the fixed administration fee of $1.25 per week and the variable administration fee of 0.27% of your account balance will not change.

 

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 and other 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.

 

Are my fees going to increase because of these changes?

Fees will decrease for most 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
Administration Fee $200 $200 No change
Investment Fee $225 $190 $35 less
Indirect Cost Ratio $275 $255 $20 less
Total Fees and Costs $700 $645 $55 less

 

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 0.27% 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 $445 (i.e. 0.89% x $50,000).

The above total is $645, of which $445 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 are fees changing?

The new fees are effective from 1 October 2020.

 

Why are fees changing?

Christian Super has been able to reduce the overall investment fees and costs that are paid to our external investment managers, resulting in an estimated saving of $1.4 million each year. As a profit-to-member fund, these savings are being passed onto Christian Super members.

We have also reviewed the way that investment fees and costs are allocated between our investment options. This has resulted in an adjustment to investment option fees to better reflect the underlying costs of each option.

 

How does Christian Super calculate 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.

 

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, 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.

 

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 introduced a 3% fee cap for members with an account balance of $6,000 or less as of 1 July 2019. 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.  Without a fee cap, you would be charged $76.60 p.a.