What is changing? From 30 September 2017, super funds are required to change the way they disclose investment costs and fees for all investment options. There are no new fees or costs being introduced, and no increases to existing fees and costs, just changes to the way we disclose information to you.
How is the disclosure of investment fees and costs changing? Investment costs which were reported as ‘Indirect Cost Ratios’, will now be reported as ‘Investment Fees’. These are the costs incurred to manage your investments and include things like: •costs of property managers and investment managers, and •operational and transactional costs paid by the Fund in buying and selling assets (for example stamp duty and brokerage).
The ‘Additional explanation of fees and costs’ section of the PDS will also include:
•separate disclosure of the transactional and operational costs for each investment option •borrowing costs incurred for the Fund’s interposed vehicles (mainly used for the Fund’s investments in unlisted property), and •real property operational costs for each investment option (some of the costs of the Fund’s building assets such as rates, cleaning and repairs and maintenance, which are offset against rent received).
Why is this change happening? These changes are prescribed by law and are reflected in the guidance provided by the Australian Securities & Investment Commission (ASIC) in its Regulatory Guide 97 on disclosure of fees and costs (known as RG97).
How will this change impact you? The fees and costs you pay won’t change, just the way we disclose them to you. The way we calculate the net returns for investment options will remain the same.
You can find the new investment fees and costs disclosures from 30 September 2017 in the MTAA Super PDS and Super Guide available at mtaasuper.com.au/member-handbooks.
Where can I find more information? You can find the new investment fees and costs disclosures from 30 September 2017 in the MTAA Super PDS and Super Guide available at mtaasuper.com.au/member-handbooks. Alternatively, you can call us on 1300 362 415