How do we disclose fees and costs? From 30 September 2017 super funds have been required to change the way they disclose investment costs and fees for all investment options.
The way that we disclose fees and costs is prescribed by law and is 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 does 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 remains the same.
How has the disclosure of investment fees and costs changed? Investment costs which were reported as ‘Indirect Cost Ratios’, are now 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 also includes:
•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).
Where can I find more information? You can find the our investment fees and costs disclosures in the MTAA Super PDS and Super Guide available at mtaasuper.com.au/member-handbooks. Alternatively, you can call us on 1300 362 415