Member Booklet Supplement Fees and other costs 1 July 2015 The information in this document forms part of the First State Super Member Booklets (Product Disclosure Statements) for: Employer Sponsored members dated 1 July 2015 Police Blue Ribbon Super members dated 1 July 2015 Ambulance Officers Super members dated 1 July 2015 Personal members dated 1 July 2015 MySuper MYSUPER AUTHORISATION NUMBER 53 22 6 4 60 365 073 Prepared and issued by FSS Trustee Corporation ABN 11 118 202 672, AFSL 293340 Level 21, 83 Clarence Street, Sydney NSW 2000 as trustee of the First State Superannuation Scheme ABN 53 226 460 365 Unique Superannuation Identifier (USI) 53 226 460 365 001 MySuper Authorisation Number 53 226 460 365 073
This document has been prepared by FSS Trustee Corporation (referred to in this document as the trustee, we, us or our ), the trustee of the First State Superannuation Scheme (referred to in this document as First State Super or the fund ). This document contains general information only. It does not take into account your specific objectives, financial situation or needs. You should consider the information having regard to your personal circumstances. It is recommended that you consult a financial adviser if you require financial advice that takes into account your personal circumstances. The information contained in this Member Booklet Supplement was accurate at the time of its preparation. However, some of the information can change from time to time and the trustee can change matters which are the subject of representations made in the Member Booklet and Member Booklet Supplements. If the change is not materially adverse, the updated information will be available on our website at Member Booklet (PDS) Updates. A paper copy of this Member Booklet Supplement and any update will be available free of charge by contacting us on 1300 650 873. We may change any matter about First State Super without member consent, but in the case of an increase in fees and charges we will notify members at least 30 days before the change occurs. This offer to apply is only made to persons receiving this Member Booklet Supplement and the applicable Member Booklet (electronically or otherwise) in Australia. This document shows fees and other costs that you may be charged. These fees and other costs may be deducted from your money, from the returns on your investment or from the assets of the superannuation entity as a whole. Other fees, such as activity fees, advice fees for personal advice and insurance fees, may also be charged, but these will depend on the nature of the activity, advice or insurance chosen by you. Taxes are set out in the Member Booklet Supplement: Tax and super and insurance fees and other costs relating to insurance are set out in the applicable Member Booklet Supplement: Insurance. You should read all the information about fees and other costs because it is important to understand their impact on your investment. The fees and other costs for each MySuper product offered by the superannuation entity and each investment option offered by the entity, are set out on page 4. Our members have access to financial advice 2 Member Booklet Supplement
First State Super Type of fee or cost Amount How and when paid Investment fee A percentage currently estimated to range, depending on the investment option selected, from 0.05% to 0.67% per year ($25 to $335 per $50,000). See page 4 for more information. MySuper Life Cycle strategy: Diversified option estimated at 0.43% per year Balanced option estimated at 0.40% per year $52 per year ($4.33 per month) plus an asset-based administration fee of 0.15% per year ($75 per $50,000). The investment fee is deducted from the assets of the option or the assets of underlying vehicles before the unit price for an investment option is determined. Administration fee Deducted from your account (in arrears) at the end of each month. Whilst the asset-based administration fee of 0.15% per year is charged from the month your membership commences, the administration fee of $52 per year ($4.33 per month) is charged from the month after your membership commences. Buy-sell spread Nil The fund does not charge a buy-sell spread. Switching fee Future contributions: Nil Deducted from your account at the time of the switch. Current account balance: No charge for the first switch in a financial year but $25 per subsequent switch. Exit fee $36 Deducted from your account each time a benefit is withdrawn, rolled over, paid to the ATO or for spouse contribution splits if your spouse s account is with another fund. Advice fee relating to all Nil No advice fee is charged for providing general and simple advice limited to your First State Super account. members investing Additional fees may be paid to a financial adviser if a financial in a particular adviser is consulted. MySuper product If you obtain more comprehensive financial advice from us you or investment will be informed of the cost before you proceed. If you are issued option with a Statement of Advice, it will contain details of the fees, which may be deducted from your account when the advice is received (or you may need to pay the fee directly). For more information see Financial planning on page 5. Other fees and Family law application fee of $110 costs 1 Family law splitting fee of $88 Indirect cost ratio No-TFN tax recovery fee of $100. If you have insurance, insurance premiums will apply. In addition, to offset costs in administering your insurance, the trustee retains $1.20 per year per unit of death and total and permanent disablement (TPD) cover, and $0.60 per year per unit of death only cover. A percentage currently estimated to range, depending on the investment option selected, from 0% to 0.06% per year ($0 to $30 per $50,000). See page 4 for more information. MySuper Life Cycle strategy: Diversified option estimated at 0.04% per year Balanced option estimated at 0.05% per year Payable to the trustee by the person making the request for information at the time a request is made. Shared equally between both parties and deducted from each party s benefit at the time the benefit is split unless all of the benefit is going to the non-member spouse (in which case the non-member spouse pays the full fee). Deducted at the time of the refund being applied to your account. Deducted from your account (in arrears) at the end of each month. Indirect costs are deducted from the assets of the option or the assets of underlying vehicles before the unit price for an investment option is determined. 1 Activity fees (including advice fees for personal advice) may also apply. See the section Additional explanation of fees and costs below. Additional explanation of fees and costs Defined fees Below is a definition of the fees and costs that may apply to your superannuation: Activity fees A fee is an activity fee if: a) the fee relates to costs incurred by the trustee of the superannuation entity that are directly related to an activity of the trustee: (i) that is engaged in at the request, or with the consent, of a member; or (ii) that relates to a member and is required by law; and b) those costs are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee, an exit fee, an advice fee or an insurance fee. Administration fees An administration fee is a fee that relates to the administration or operation of the superannuation entity and includes costs incurred by the trustee of the entity that: a) relate to the administration or operation of the entity; and b) are not otherwise charged as an investment fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee. 3
Advice fees A fee is an advice fee if: a) the fee relates directly to costs incurred by the trustee of the superannuation entity because of the provision of financial product advice to a member by: (i) a trustee of the entity; or (ii) another person acting as an employee of, or under an arrangement with, the trustee of the entity; and b) those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an insurance fee. Buy-sell spreads A buy-sell spread is a fee to recover transaction costs incurred by the trustee of the superannuation entity in relation to the sale and purchase of assets of the entity. Exit fees An exit fee is a fee to recover the costs of disposing of all or part of members interests in the superannuation entity. Indirect cost ratio The indirect cost ratio (ICR), for a MySuper product or an investment option offered by a superannuation entity, is the ratio of the total of the indirect costs for the MySuper product or investment option, to the total average net assets of the superannuation entity attributed to the MySuper product or investment option. Note: A dollar-based fee deducted directly from a member s account is not included in the indirect cost ratio. Switching fees A switching fee for a MySuper product is a fee to recover the costs of switching all or part of a member s interest in a superannuation entity from one class of beneficial interest in the entity to another and, for superannuation products other than a MySuper product, is a fee to recover the costs of switching all or part of a member s interest in the superannuation entity from one investment option or product in the entity to another. Investment fees An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes: a) fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and b) costs incurred by the trustee of the entity that: (i) relate to the investment of assets of the entity; and (ii) are not otherwise charged as an administration fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee. Estimated investment fees, performance-based fees and indirect cost ratios The amount of investment fees (including performance-based fees) you pay for a specific investment option reflects the actual investment management expenses incurred and cannot be precisely calculated in advance. These expenses are taken into account when the value of the investment option is reviewed and the unit price determined. The investment fees for each of the pre-mixed investment options (i.e. the High Growth, Diversified, Diversified SRI, Balanced and Capital Guarded investment options) include the trustee s charge of 0.03% per year and transaction costs. From 1 January 2016 the trustee s charge will be 0.04% per year. Investment fees are an additional cost to you. The amount of investment fees, performance-based fees and indirect cost ratios will change from year to year. As a guide, the table below shows estimates of these fees and costs (and total estimated corresponding dollar amounts) for the 12 months to 30 June 2016. Investment option Estimated investment fees (excluding performance-based fees) % per year Estimated performance-based fees % per year Estimated indirect cost ratio % per year Total expressed as $ per $50,000 2 High Growth 0.40% 0.08% 0.02% $250 Diversified 1 0.36% 0.07% 0.04% $235 Diversified Socially Responsible Investment 0.62% 0.05% 0.03% $350 Balanced 1 0.33% 0.07% 0.05% $225 Capital Guarded 0.26% 0.05% 0.05% $180 Australian Equities 0.05% nil nil $25 Australian Equities Socially Responsible Investment 0.50% nil nil $250 International Equities 0.07% nil 0.01% $40 Property 0.52% 0.05% 0.01% $290 Australian Fixed Interest 0.06% nil nil $30 International Fixed Interest 0.09% nil 0.06% $75 Cash 0.07% nil nil $35 1 The fees shown are the same for MySuper and Choice members. 2 This is the combined total estimate of the investment fee, performance-based fee and indirect cost ratio expressed as dollars for each investment option. firststatesuper.com.au Call 1300 650 873 Email enquiries@firststatesuper.com.au 4
Financial planning First State Super members have access to financial advice 1. If the advice is about your First State Super account, the fee for this advice may be deducted from your First State Super account when the advice is received or you may need to pay for the advice directly. The Statement of Advice (SOA) issued to you whenever you are provided with personal advice will detail the fees applicable. First State Super does not pay any commissions to advisers. The table below describes the services and the fees charged for these services. Service Details Fee Personal advice limited to your interest in your First State Super account Comprehensive advice Ongoing review service Single issue advice about investment choice, life insurance, salary sacrifice, voluntary contributions and starting an income stream. If your situation is more complex, we will discuss our comprehensive advice service with you. You will receive a SOA whenever you are provided with personal advice. Advice that is more comprehensive and needs to factor in more than one element of advice is able to be prepared for you. This will be provided to you in a detailed SOA. If you wish, the SOA can include advice about your broader financial circumstances outside superannuation. The advice that is initially provided in the SOA may need to be monitored and adjusted over time as your personal circumstances change. The ongoing review service includes a structured ongoing review program, proactive contact with you by your dedicated financial planner, access to your dedicated financial planner for additional advice and regular newsletters. No charge. A financial planning fee is payable on a fee-for-service arrangement payable by the individual member. The fee varies depending on the complexity of your financial affairs. A fee is payable on a fee-for-service arrangement payable by the individual member. 1 Financial planning services are provided by First State Super Financial Services Pty Ltd (ABN 37 096 452 318, AFSL 240019). First State Super Financial Services is wholly owned by the FSS Trustee Corporation and is responsible for the advice that they provide. The trustee pays First State Super Financial Services a fixed fee to provide a limited advice service (both face-to-face and over the telephone) to all members. The cost of providing this service is deducted by the trustee from the administration fee it charges its members. The trustee is not a representative of First State Super Financial Services and receives no commissions when making referrals to this service. For more information about financial planning, see the relevant Member Booklet Supplement: About First State Super. Activity fees An activity fee is a fee for the particular service you choose to use and is not part of the ongoing management costs. The only activity fees that the fund currently charges (apart from an investment switching fee) are set out in this table: Type of fee or cost Amount How and when paid Family law fees: Application for information This fee is for providing information as required under the Family Law Act. Splitting an account This fee is for processing the splitting of accounts. $110 Payable to the trustee by the person making the request for information at the time a request is made. $88 The fee is shared equally between both parties and deducted from each party s benefit at the time the benefit is split unless all of the benefit is going to the non-member spouse (in which case the nonmember spouse pays the full fee). No-TFN tax recovery fee $100 This fee will apply if we arrange a refund of the tax deducted from your account for failing to provide a TFN. The fee is deducted at the time of the refund being applied to your account. 5 Member Booklet Supplement
Performance fees The trustee has negotiated performance fee arrangements with several of its investment managers. Estimated performance fees are shown on page 4. A performance fee may be payable once performance above an agreed level has been reached and is typically capped at an upper percentage limit. If performance fees are payable then they will increase the investment fees payable for that investment option. These arrangements are subject to change. The method of calculation may vary between agreements but generally these fees are calculated as a percentage of the investment returns that exceed the agreed level of return. Investment managers with performance fee arrangements may also be entitled to a base percentage fee which is usually below market rates. It is important to remember that the amount of performance fees, if applied in any year, cannot be accurately predicted because they depend on the allocation of our assets to these investment managers and the actual investment performance in any financial year. Additions or alterations to fees and charges All fees and costs may be revised by the trustee from time to time without your consent. For example, fees and charges may increase when there are changes in superannuation law or increases in fees charged by the fund s service providers. The trustee may introduce new fees and charges. The trustee will give you at least 30 days prior notice if there is an increase in fees and charges or if a new fee or charge is introduced that affects your account. This excludes investment fees which are estimates and the actual fees charged may be more or less than estimated. Tax deductions The fund receives a tax deduction for insurance premiums paid by members, which is credited to the accounts of the members who paid those premiums. The benefit of any tax deductions the fund may receive for the administration fee and costs paid by members is not passed on in the form of a reduced fee or cost, but is retained in the fund for the benefit of the membership as a whole. Reserves The trustee maintains an administration reserve to manage the costs associated with the management of the fund. Interest earned on contributions received by the trustee but not yet allocated to members accounts and administration fees deducted from members accounts, are credited to the fund s administration reserve account. The trustee uses this account to pay the administrator s fees and any other administration and operating expenses of the trustee or fund. Any excess retained in the account is ultimately applied for the benefit of the membership as a whole. The trustee is required to maintain an Operational Risk Financial Requirement (ORFR) reserve. The ORFR reserve is held separately from members accounts and the administration reserve maintained by the trustee. The ORFR reserve is only used to cover losses arising from operational risks. Tax For more information on the amount of tax payable, see section 7 of the applicable Member Booklet and the Member Booklet Supplement: Tax and super. Insurance costs For information on insurance fees and other costs relating to insurance, see section 8 of the applicable Member Booklet and the applicable Member Booklet Supplement: Insurance. To offset costs in administering TPD, death benefits and claims, the trustee retains $0.10 of the per month cost of each unit of death and total and permanent disablement (TPD) cover, and $0.05 of the per month cost of each unit of death only cover. Service and advice Phone 1300 650 873 Fax 1300 722 072 Email enquiries@firststatesuper.com.au Web firststatesuper.com.au Post PO Box 1229, Wollongong NSW 2500 MBS Fees and costs 1 July 2015 MB 1 July 2015 MBS Fees&Costs 07/15