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Did you know?
Small difference in both investment performance and fees and costs can have a substantial impact on your long-term returns.
For example, total annual fees and costs of 2% of your Fund balance rather than 1% could reduce your total return by up to 20% over a 30 year period (for example, reduce it from $100,000 to $80,000).
You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs.
You may be able to negotiate to pay lower contribution fees and management costs where applicable. Ask the Fund or your financial adviser.*
To find out more
If you would like to find out more, or see the impact of the fees based on your circumstances, the Australian Securities and Investments Commission (ASIC) website www.moneysmart.gov.au has a superannuation fee calculator to help you compare different fee options.
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* The wording in the box above is prescribed by law for every Product Disclosure Statement. Currently, ACSuper does not pay commission to financial advisers. ACSuper does however, retain the services of ACS Financial Pty Ltd for the provision of general superannuation advice to members. This service benefits all members and is paid out of the Fund operating costs.
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The fees and costs you may be charged are set out below. These fees and costs may be deducted from your account, from the returns on your investment or from the fund assets as a whole.
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Type of fee or cost
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Amount
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Fees when your money moves in or out of the fund
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Establishment fee
The fee to open your investment.
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Nil
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Contribution fee
The fee on each amount contributed to your investment – either by you or your employer.
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Nil
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Withdrawal fee
The fee on each amount you take out of your investment.
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$65 per withdrawal
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Termination fee
The fee to close your account
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Nil
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Management Costs
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The fees and costs for managing your investment
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Administration and Management Fee
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$1.99 per week ($103.53 p.a.) plus 0.60% (estimate) asset based expense recovery fee
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Investment fees
The amount you pay for specific investment options.
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Cash 0.50%*
Conservative 0.58%*
Moderate 0.66%*
Balanced 0.77%*
Ethical Balanced 0.91%*
Growth 0.83%*
Ethical Shares 1.10%*
* these are estimates for 2010/2011
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Service Fees
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Investment switching fee
The fee for changing investment options
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Nil
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Binding Nomination
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$10 p.a.
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Other Fees
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Legislation and our Trust Deed allow us to charge fees in special circumstances not listed above, e.g. retrieval of information under Family Law legislation. You will be notified if this is the case. Where the Fund holds investments in unitised options, a buy/sellspread may apply to new investments or redemptions (this is explained in further detail below). In addition to the above management expense ratios, the Fund may agree to pay performance-based fees to managers where they have significantly out-performed targeted objectives.
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Additional explanation of fees and costs
Buy/Sell spreads
Unitised investment options may apply a buy/sell spread. A buy/sell spread represents the difference between the unit allocation and unit release price of an investment option. The buy/sell spread is used to recover the transaction costs incurred when members invest, switch or withdraw all or part of their investments. Transaction costs incurred from buying and selling assets include brokerage and government taxes. The use of a buy/sell spread means that transaction costs are paid by the investors who are transacting, rather than the investors remaining in the option.
Currently there are no buy/sell spreads.
Fee increases or changes
ACSuper reserves the right to change the fees charged at any time. Should fees increase, we will ensure you are notified in writing at least 30 days before any increase takes effect.
Member Benefit Protection
Current superannuation legislation requires that where a member’s account balance is under $1,000, fees cannot exceed the interest earned. This measure is to ensure that small account balances are not eroded by fees. Please note statutory charges and insurance premiums will continue to be debited from your account.
Example of annual fees and costs for the Ethical Balanced (default) investment option
This table gives an example of how fees and costs in the Ethical Balanced investment option for this product can affect your investment over a one-year period.
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Ethical Balanced
(default option)
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Balance of $50,000 with total contributions of $5,000 during the year
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Contribution fees
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NIL
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For every $5,000 you put in, you will be charged nil.
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Plus management cost
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0.91% + $103.53 ($1.99 per week) + $300 (0.60% of account balance)
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For every $50,000 you have in the Fund, you will be charged $455 each year, plus $403.53 in administration fees.
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Equals costs of Fund
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If you put in $5,000 during the year and your balance was $50,000, then for the year you will be charged fees of $858.53. What it costs you will depend on the the investment option(s) you choose and the fees you negotiate with your fund or financial adviser.*
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* Additional fees may apply. This statement is prescribed by law for every Product Disclosure Statement.
ACSuper does not negotiate fees with individual members and does not pay any commissions to advisers.