POWERED BY MOMENTUM MEDIA
Two super funds announce fee changes
Vanguard Super and legalsuper have both announced fee changes that will come into effect in December, as outlined in recent significant event notices.
Effective 6 December 2023, Vanguard Super will be introducing the ability for members to pay advice fees via a deduction from their SaveSmart accounts.
With written consent, members can agree that personal advice provided by a licensed financial adviser registered with Vanguard, relating to the SaveSmart account, can be paid via a deduction from the account.
The payment of advice fees will also be subject to certain limits, such as a minimum balance of $25,000 at the time of deduction and that the advice fee payable cannot be over 2 per cent of the account balance at the time of deduction.
Vanguard has also capped the total amount of advice fees deducted each financial year at $6,000, inclusive of GST.
“Advice fees can only be deducted from your account as a single payment each time you receive personal advice, and your consent is required on each occasion. Advice fees cannot be deducted from your account on an ongoing or periodic basis,” Vanguard added.
The facility has not been extended to Vanguard MySuper members.
The fund also announced an additional asset class, Australian government bonds, will be added to its Ethically Conscious Growth investment option from 6 December to join its existing five asset classes.
Meanwhile, legalsuper has announced changes to the investment fees and costs for each of its investment options, effective 14 December 2023.
The current MySuper investment fees and costs of 0.52 per cent will increase by 0.10 per cent to 0.62 per cent.
“We are implementing these increases to continue investing in improving products and services to assist members to build their wealth and quality of life in retirement,” legalsuper chief executive, Luke Symons, told Super Review.
“Our administration fees have remained at the same level for the past four years and we have passed on to members reductions in MySuper investment fees of 14.0 per cent in 2020 and a further 2.0 per cent in 2021.”
According to the fund, there are over 29,000 members invested in the MySuper option or some 64.2 per cent of total member numbers. It returned 7.9 per cent for FY22–23.
AUTHOR
Rhea Nath
Rhea L Nath is a journalist on Super Review and InvestorDaily, with a focus on funds management, superannuation, and institutional investment. Previously, she covered small business and entrepreneurship news at Dynamic Business and multicultural issues at Indian Link Media Group. In 2022, she was named Young Journalist of the Year at the NSW Premier’s Multicultural Communications Awards.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
