10 November, 2021

Changes to investment fees

We work hard to provide value for your super through excellent service, expert advice and keeping fees as low as possible.

We work hard to provide value for your super through excellent service, expert advice and keeping fees as low as possible.

On 5 October 2021, the estimated investment fees reduced for seven of our nine investment options.1

Options included in the estimated reductions were Growth, Balanced (MySuper), Balanced, Moderate, Conservative, Australian shares, International shares, Diversified fixed interest and Long-term.

For the Balanced (MySuper) option — our most popular investment option — we estimate a reduction in investment fees from 0.74% of your total account balance to 0.64%.

This means, if you have a balance of $50,000 in the Balanced (MySuper) option, your overall investment fees are estimated to reduce from $370 per year to $320 — a saving of $50 per year.2

Apart from saving on yearly fees, a reduction also increases the earning potential of your super.

For a 32-year-old with an account balance of $50,000 and a yearly income of $50,000, this drop means an extra $12,582 of super when it comes time to retire at age 67.3

Investment fees changes

Investment option Estimated fee before 5 October Estimated fee after 5 October
Growth  0.81%  0.73%
Sustainable   0.91%  1.00%
Balanced (MySuper) and Balanced 0.74%   0.64%
Moderate  0.59%  0.56%
Conservative 0.51%  0.46%
Australian shares  0.84%  0.51%
International shares  0.78% 0.57%
Diversified fixed interest  0.30%  0.28%
Cash  0.05% 0.05%
Long-term  0.71%  0.58%

1 For more information on fees and costs, including how investment fees are estimated, see Fees and costs.

2 Investment fees are based on our estimate of ongoing investment costs. This calculation doesn’t include administration fees, which also apply.

3 Based on a comparison between investment fees of 0.74%pa and 0.64%pa, assuming a $50,000 annual salary before tax and super, 10% employer contributions, administration fees of $135 and an investment return of 8.72%pa in each scenario.

Why did estimated investment fees change?

When MTAA Super and Tasplan merged to become Spirit Super on 1 April 2021, our fund size grew significantly.

This increased scale has provided savings and has allowed us to negotiate more competitive rates from our investment managers, consultants, and advisers.

This means your super is working harder for you.

Why didn’t estimates on all options decrease?

While our estimated investment fees have dropped on most investment options, our Cash option remained the same, and our Sustainable option increased from 0.91% to 1.00%.

It’s important to note our investment fees are our best estimate of costs going forward. Actual investment fees can differ, so we tend to err on the side of caution to provide a more reasonable expectation of what the costs may be.
For our Sustainable option, the fees previously disclosed were based on unusually low transaction costs. These are expected to return to more normal levels this year.

What exactly are investment fees?

To keep your super growing, we invest it in a variety of assets such as shares, property, cash, and bonds with the aim of earning investment returns. These returns are then reinvested into your super to help it grow faster.

Investment fees cover the costs of managing these investments and are charged as a percentage of your overall super balance.

The total investment fee for each investment option is made up of:

  • base investment costs — including investment manager fees (excluding performance fees), custody costs, consulting expenses, legal costs etc.
  • performance-related fees — fees paid to investment managers when they deliver returns above agreed targets
  • transactional and operational costs — brokerage costs, buy-sell spreads charged by underlying fund managers, settlement costs, stamp duty etc.

The exact amount of investment fees you pay each year will change depending on investment performance and which investment option (or options) you choose.

For example, property and infrastructure assets will have different management fees and costs to assets like shares and cash.

We regularly review our investment fees and continually negotiate with our investment managers, adviser, and consultants to keep investment fees as low as possible.

It’s just another way we help keep your super growing.

More about investments

Choosing the right investment option at the right time can make a big difference to your super’s long-term performance, so it pays to know what your options are.

For more information about your investment options, see Investment options.

For details about investment fees, see the Investment guide.

Not sure which investment option is best for you? Get some advice.