We run Kinetic Super solely for the benefit of our members.    

We don’t pay commissions to agents or dividends to shareholders, and we try to keep our fees and costs as low as possible. Even a small difference in fees can mean you can save thousands of dollars over the life of your super.

For more information on how fees work, see the MoneySmart website. To see how we stack up against other funds, Compare us.

The table below outlines the fees and costs that may apply to your account. 

Type of fee

What it pays for

How much is it? How and when is it paid?
Investment fee

Cost of investing your super
n/a n/a
Administration fee

Cost of operating the super fund
$80.60 per year ($1.55 per week)
plus 0.25% of the value of your assets (capped at $500 per year)
Paid monthly from your account balance
Buy-sell spread

Your super is invested in assets according to your chosen investment mix. The buy-sell spread covers the cost of buying or selling assets as you or your employer make transactions (contributions, withdrawals, investment switches, etc). This means each member covers the transaction costs to their own investments. 

From 0 to 0.25% of the balance being transacted depending on the investment option.

Deducted before unit prices* are declared.

*When you invest your super in an investment option you receive ‘units’. Each unit represents an equal part of that investment option with its dollar value known as a ‘unit price’.

Switching fee

Cost of changing between investment options.

No fee.

Buy-sell spread may apply, which would be included in the unit price.
n/a
Exit fee

Cost of withdrawing from the assets you’re invested in.
$50 Paid from your account balance for each withdrawal, or when your account is closed.
Advice fees

Cost of providing financial product advice to you about our super products and investment options.
No fee. Not applicable, however advice fees relating to all members are included in the Administration fee.
Other fees and costs1
Indirect cost ratio (ICR)

Investment related costs, including investment management estimated performance fees, and other related costs of the Fund’s invested products. These costs represent the expenses incurred by the Fund as a percentage proportion of its average net asset value for the financial year, applied prior to striking the unit prices. It’s a ratio of the total cost of each investment option, to the total average net assets of the fund that’s attributed to that investment option. The ICR varies and depends on the investment option(s) you’re invested in.
Pre-mixed options#

Aggressive 0.57% per year
Growth (MySuper)  0.48% per year
Moderate 0.30% per year

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

1Additional fees and costs may apply, such as activity fees and insurance fees but these will depend on the nature of the activity or insurance chosen by you. Refer to the Kinetic Super Fees and Costs Incorporated Information 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 portfolio as 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 members for the investment options. Some expenses may also be paid from Fund reserves. Refer to the Kinetic Super Fees and Costs Incorporated Information for more information.

This can be a bit hard to understand out of context, so let’s look at an example. 

Let’s say you have the Growth (MySuper) option, with a balance of $50,000. 
The annual fees would work out like this:

Type of fee How it's calculated Which works out at

Investment fees

None $0
Administration fees $80.60 +
0.25% of $50,000
$80.60 + $125.00 = $205.60
Indirect costs, based on Growth (MySuper) investment option 0.48% of $50,000 $240
Total yearly cost $445.60

Note: additional fees may apply. And, for each benefit payment you will be charged an exit fee of $50.00.

Buy/sell spreads

The table below sets out the estimated 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 (MySuper 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

The investment fees vary dependent upon which option you have chosen or invested. While estimated performance fees (based on recent experience) have been included in the Management costs as detailed in the Fees and costs table above, they may vary from year to year depending on actual performance. The performance based fees charged by the investment managers are outlined in the table below:

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 2

Private Capital

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

View our PDS and IBR