We like to keep things as simple as possible when it comes to understanding what’s on offer.

As a member, you will benefit from lower fees and charges. As an industry fund, we try to keep them as low as possible. This can make a big difference to the amount of money you receive in retirement.

Fees and other costs

The table below shows fees and other costs that you may be charged. These fees and costs may be deducted from your account, from the returns on your investment or from the Fund assets as a whole.

Type of fee or cost Amount How and when paid
Investment fee Nil Not applicable, however indirect investment costs, included in the indirect cost ratio, apply.
Administration fee First $100,000: 0.5% p.a.
Remaining balance: 0.2% p.a.
Capped at $1,200 p.a. per pension account.
Deducted from your account monthly in arrears or on the date your account is closed (on a pro-rata basis), based on month-end balance.
Buy-sell spread

Buy spread: From 0.00% to 0.25% depending on the investment option.

Sell spread: From 0.00% to 0.25% depending on the investment option.
Deducted weekly before unit prices are declared.
Switching fee

Six (6) free switches each financial year.

$30 per switch thereafter.
Deducted from your account at the time of processing your 7th and subsequent switches.
Exit fee

Account closure: $50

Partial withdrawal by cheque: $30

Deducted from your account before your pension account is closed.

Deducted from your account when your pension income is paid for lump sum withdrawal is processed.
Advice fees
relating to all members investing in a particular investment option
Nil Not applicable, however advice fees relating to all members are included in the Administration fee
Other fees and costs1
Indirect cost ratio (ICR)2

Pre-mixed options
Aggressive  0.57% p.a.
Growth  0.48% p.a.
Moderate  0.30% p.a.

Asset class options
Australian Shares  0.41% p.a.
Overseas Shares  0.33% p.a.
Property  0.79% p.a.
Bonds  0.24% p.a.
Cash  0.05% p.a.
Deducted weekly from gross earnings of the option before unit prices are declared. 

Other fees and costs may apply, such as activity fees and advice fees for personal advice. Refer to the Kinetic Smart Pension PDS for more information. 
ICR includes estimated performance related fees and is subject to change from time to time. The ICR is calculated based on available information from underlying managers, taking into account the Fund's experience for the year ending 30 June 2016, the Fund's experience for the 6 months to 31 December 2016 and the Fund's investment portfolioas at 31 December 2016 (as the experience for the year to 30 June 2016 alone does not provide a reasonable estimate of the ICR).

Note: The above table shows fees charged to member for the investment options. Some expenses may also be paid from Fund reserves. Refer to the Kinetic Smart Pension PDS for more information.


 

Example - the growth investment option Balance of $50 000
Investment fees 0.0% For every $50 000 you have in the investment option you will be charged $0 each year.
PLUS
Administration fees
0.5% And, you will be charged $250 in administration fees each year.
PLUS
Indirect costs for the investment option
0.48% And, indirect costs of $240 each year will be deducted from your investment.
EQUALS
Cost of product
  If your balance was $50 000, then for that year you will be charged fees of $490 for the investment option.

Buy/sell spreads

The table below sets out the buy/sell spread amounts for each investment option. A buy/sell spread is the difference between the purchase (buy) and sale (sell) unit price of an investment, when transactions are applied to your account. The spreads ensure that buy and sell investment costs (e.g. brokerage and stamp duty, etc.), are applied directly to the responsible member. It isn’t a direct fee to your account, but is included in the buy/sell unit price for each investment option applied at the time of the transaction.

Investment option Buy/sell spread
Pre-mixed options
Aggressive  0.12%
Growth 0.11%
Moderate 0.09%
Asset class options
Australian Shares 0.15%
Overseas Shares  0.14%
Property 0.25%
Bonds 0.11%
Cash 0.00%

These charges are effectively paid indirectly by members as they are deducted from the underlying investment returns of each investment manager. The total amount of investment related fees paid by a member is based on the amount invested in each investment option and deducted from the assets held on behalf of the fund before investment returns are determined by each Investment Manager and before unit prices are determined by the Trustee for each Investment Option.

Around 15% of the Fund's total assets are subject to potential payment of performance fees.

Performance fees

Manager Asset class Performance fee basis Calculation period Low High
Cooper Investors AE Fund Australian Shares 10% of performance in excess of benchmark. Monthly (3 Year rolling high water mark) Nil 0.62%
Charter Hall CPOF Property Up to 15% of performance between 11% and 13% p.a. and 20% of performance in excess of 13% p.a. A total fee cap of 0.90% of gross assets applies (including the base management fee). Rolling 3 Years Nil 0.45%
Westbourne Yield Fund No 1 / Westbourne Infrastructure Debt Fund Alternative Assets 12.5% of any cumulative realised return over Bank Bill Rate + 4.0 p.a. Quarterly Nil 1.11%
Hastings UTA Private Capital 10% of any outperformance (realised gain) above the benchmark (benchmark: 10 year Commonwealth Bond yield +4%).  Outperformance is determined only on the sale of any underlying asset where the sale proceeds exceed the aggregate of a benchmark return plus 4% in respect of the underlying asset after taking into account any aggregated realised underperformance. Half-yearly (Continuous high watermark) Nil 2.48%
Palisade DIF    Private Capital 20% of the cumulative net return above the cumulative return hurdle. The return hurdle is 5.00% p.a. above the 10 Year Australian Commonwealth Government Bond Index. Annually Nil 4.76%

Performance based fees are only charged by investment managers when performance hurdles are exceeded. The impact of performance based fees on the management costs applicable to an investment option depends on the amount invested with, and returns achieved by, the investment manager from year to year. In the same way that past investment returns are not reliable indicators of future returns, past performance fees are not a reliable indicator of future performance fees. Performance fee calculations can be very complex. If you would like more information about how performance fees work, please contact us.

More information

For more information about the fees and charges that apply, refer to the Product Disclosure Statement.

Smart Pension PDS and Application Form