Fees and other costs Employer-sponsored and personal superannuation members. This document was prepared on 1 July 2016. The information in this document forms part of the Statewide product disclosure statement (PDS) prepared on 1 July 2016. www.statewide.com.au/join
Contents Consumer advisory warning 2 Statewide fee table for all investment options 3 Additional explanation of fees and costs 4 Example of annual fees and costs for a MySuper investment option 6 Important information The information in this booklet forms part of the Statewide product disclosure statement (PDS) prepared on 1 July 2016 for employersponsored and personal superannuation members which offers an interest in Statewide, divisions 1 and 2 within the Statewide Superannuation Trust (the fund). The fund is a regulated and complying superannuation fund. Statewide Superannuation Pty Ltd ABN 62 008 099 223 Australian Financial Services Licence (AFSL) Number 243171, is the issuer and Registrable Superannuation Entity (RSE) licensee and trustee of the fund and is authorised to offer a MySuper product (unique identifier 54 145 196 298 820). The information in this booklet is not personal advice. In providing this information to you we have not taken into account your objectives, financial situation or needs. We recommend that you seek professional financial advice from a licensed adviser. This booklet may be updated or replaced at any time. Changes that are not materially adverse will be updated and made available on our website at www.statewide.com.au. Consumer advisory warning Did you know? Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30-year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. Your employer may be able to negotiate to pay lower administration fees where applicable. Ask the fund or your financial adviser*. To find out more If you d like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website www.moneysmart.gov.au has a superannuation fee calculator to help you check out different fee options. The inclusion of the important information above is required by law. Please note, however, that the ability to negotiate fees is not applicable to Statewide. We strive to keep our fees as low as possible while maintaining effective management of the fund. Fees and costs Statewide is committed to ensuring you re provided with a value for money super product. As an industry fund, we strive to keep fees to a minimum to protect your savings and allow them to grow. This booklet shows the fees and other costs that you may be charged as part of your Statewide membership. These fees and costs may be deducted from your account balance, from the returns on your investment through unit prices, or from the fund assets as a whole. Other fees, such as activity fees, advice fees for personal advice from our financial planners* and insurance fees may also be charged, but these will depend on the nature of the activity, advice or insurance chosen by you. Information about insurance costs are set out in the Insurance in your super booklet and you can find information about taxes in the How super is taxed booklet. You should read all the information about fees and other costs because it s important to understand their impact on your investment. *Financial information and general advice may be provided by representatives of Statewide Superannuation Pty Ltd ABN 62 008 099 223 Australian Financial Services Licence No. 243171. Any personal advice may be provided by an authorised representative of Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514. Fees may apply for financial planning advice. IFS is responsible for the advice given to you by its authorised representatives. The indirect cost ratios for each investment option offered by Statewide are set out on pages 6-9 of the How we invest your money booklet. See also Additional explanation of fees and costs on page 4. Page 2 Fees and costs
Type of fee Amount How and when paid Investment fee 0.02% of your account balance per annum. Deducted from the investment option s returns before the allocation of returns through unit prices. Administration fee $78 per annum ($1.50 per week) plus an asset-based fee of 0.06% of your account balance per annum. The dollar-based fee is deducted from your account at the end of each month or on earlier withdrawal from the fund. The asset-based fee is deducted from the returns of each of the investment options before the allocation of earnings to accounts through unit prices. Buy/sell spread Nil Not applicable Switching fee Exit fee Advice fees Relating to all members investing in a particular investment option Other fees and costs* Indirect cost ratio Indirect costs include third-party investment management and performance fees paid by the trustee. Nil for the first switch per financial year. $20 per switch thereafter. $50 for a full withdrawal $35 for a partial withdrawal Nil Additional fees may apply these are disclosed under the heading Additional explanation of fees and costs. Between 0.04% to 0.80% per annum (forecast for 2016-17 ) depending on your chosen investment option(s) see pages 6-9 of the How we invest your money booklet. See also Additional explanation of fees and costs. Deducted from your account at the time of the switch (there are no fees if you request that future contributions be invested in different investment options). Deducted from your account at the time of payment. The fee applies to payments made to you or to another superannuation fund and excludes payments resulting from a claim due to death, total and permanent disablement, terminal illness, financial hardship, specified grounds, payments made to the Australian Taxation Office on your behalf with the exception of lost super or payments due to family law or contribution splits. Not applicable Deducted from the investment option s returns before the allocation of returns through unit prices. *See Additional explanation of fees and costs on page 4 for more information on activity fees, advice fees for personal advice and other costs that may be applied. The fees stated for 2016 17 are estimated third-party investment management fees (including performance fees), based on our current asset allocation and the investment managers who currently manage money for that investment option. The fees stated are therefore predictive and may differ materially from the fees actually incurred. The actual investment management fees are calculated at the end of each year when returns for the year are known. These are published in the annual report. Fees and costs Page 3
Additional explanation of fees and costs Family law charges* The trustee allows either the splitting or deferral of a member s account upon separation or divorce. The trustee charges a fee for any requests to comply with the family law provisions. Statewide s charges are: Request for information by member Request for information by non-member An order to split or flag an interest Splitting a benefit Nil $120 (payable at the time of request) $240 (payable at the time of request) $360 (deducted in equal parts from the benefit payments and the retained benefit unless prior arrangements are agreed to) Goods and services tax (GST) All fees and charges are quoted inclusive of GST where applicable. Insurance costs Please refer to the Insurance in your super booklet, available from www.statewide.com.au or by calling us on 1300 65 18 65, for information about insurance costs. The trustee receives 6.9016% of life only insurance premiums, 6.0759% of life and total and permanent disablement (TPD) insurance premiums, and 13.7255% of income protection insurance premiums to cover the cost of insurance administration and other insurance related costs and provisions. Financial advice fee As a Statewide member, you have access to our financial planning service. All fees for using this service are agreed upon in advance, with your first fact finding appointment at no additional cost. You can ask for the fees that relate to your super investment and membership of Statewide to be deducted straight from your super account. You ll be invoiced separately for financial planning relating to advice outside of Statewide super. Financial information and advice may be provided by representatives of Statewide Superannuation Pty Ltd ABN 62 008 099 223 Australian Financial Services Licence No. 243171 or by authorised representatives of Industry Fund Services Limited (IFS) ABN 54 007 016 195, AFSL No 232514. Fees may apply for financial planning advice. Transaction and operational costs No buy-sell spreads currently apply in respect of any transaction. Transaction and operational costs are either included in the fees set out in the indirect costs section of the table on page 3 or reflected in the market value of the underlying investments in each investment option. They are not charged separately. Other fees* Fees may be charged for specific member requests that are not part of Statewide s normal services. Taxation Please refer to the How super is taxed booklet, available from www.statewide.com.au or by calling us on 1300 65 18 65, for the impact of tax on super, fund earnings and benefit payments. Any tax benefit the fund may receive will be reflected in the amount available for distribution to members or held in reserves. Contributions tax rebate Each year the trustee calculates a partial contributions tax rebate on the insurance premiums deducted from members accounts. The contributions tax rebate is allocated to eligible members accounts at the end of the financial year or on earlier withdrawal from the fund. Fee changes From time to time, the trustee may increase its fees. Members will be provided with 30 days prior notice in writing of such increases. Indirect costs Indirect costs include third-party investment management fees and performance fees paid by the trustee. These fees are not charged to members directly. They are deducted from the relevant investment option s returns before the declaration of unit prices. Investment management and performance fees Statewide pays fees to investment advisers and managers to manage the assets in each of the investment options. Investment costs are shown as a percentage of the fund s assets to which they apply. The percentages vary from year to year, reflecting the blend of investment managers used and any performance fees paid. The investment management fees shown in the How we invest your money booklet, available from www.statewide.com.au or by calling us on 1300 65 18 65, are the total investment management fees inclusive of investment performance fees shown in the table on page 5. Defined fees The fees marked* under the heading Additional explanation of fees and costs are activity fees. A fee is an activity fee if: 1. the fee relates to costs incurred by the trustee of the superannuation entity that are directly related to an activity of the trustee: a) that is engaged in at the request, or with the consent, of a member, or b) that relates to a member and is required by law, and 2. 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. 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: 1. relate to the administration or operation of the entity, and 2. 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. A fee is an advice fee if: 1. 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: a) the trustee of the entity, or b) another person acting as an employee of, or under an arrangement with, the trustee of the entity, and 2. 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. 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. Statewide does not currently have a buy/sell spread on its investment options. An exit fee is a fee to recover the costs of disposing of all or part of members interests in the superannuation entity. Page 4 Fees and costs
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. An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes: 1. fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees), and 2. costs incurred by the trustee of the entity that: a) relate to the investment of assets of the entity, and b) are not otherwise charged as an administration fee, a buysell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee. A switching fee is a fee to recover the costs of switching all or part of a member s interest in the superannuation entity from one class of beneficial interest in the entity to another. A fee is an insurance fee if: 1. the fee relates directly to either or both of the following: a) insurance premiums paid by the trustee, or the trustees, of a superannuation entity in relation to a member or members of the entity b) costs incurred by the trustee, or the trustees, of a superannuation entity in relation to the provision of insurance for a member or members of the entity, and 2. the fee does not relate to any part of a premium paid or cost incurred in relation to a life policy or a contract of insurance that relates to a benefit to the member that is based on the performance of an investment rather than the realisation of a risk, and The forecast performance fees and investment management fees for 2016 17* can be found in the table below: Forecast performance fees and investment management fees for 2016 17 * (%) Investment option Performance fees Investment management fee (excludes performance fee) Total investment management fee Cash 0.00 0.04 0.04 Diversified Bonds 0.00 0.28 0.28 Conservative 0.05 0.29 0.34 Conservative 0.10 0.37 0.47 Balanced Active Balanced 0.16 0.47 0.63 Sustainable 0.00 0.80 0.80 Diversified MySuper 0.20 0.50 0.70 High Growth 0.24 0.55 0.79 Australian Shares 0.29 0.31 0.60 International Shares 0.15 0.55 0.70 *The actual performance fees and investment management fees are calculated at the end of each year when returns for the year are known. Performance fees are payable to investment managers when they achieve an investment return higher than the agreed target. 3. the premiums and costs to which the fee relates are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an advice fee. Fees and costs Page 5
Generally performance fees are deducted from the fund s earnings before unit prices are declared and are calculated as follows: Average assets managed over 12 months (e.g. $50 million) x % return above target (e.g. 1%) x performance fee percentage (e.g. 10%) = Performance fee $50 million X 1% X 10% = $50,000 (This is an example of how performance fees are calculated, not the actual amount.) Example of annual fees and costs for the MySuper investment option This table gives an example of how the fees and costs for the MySuper investment option can affect your super investment over a one-year period. You should use this table to compare this product with other super products. EXAMPLE - MySuper option Type of fee Amount Balance of $50,000 Investment fees 0.02% per annum For every $50,000 you have in the MySuper option you will be charged $10 each year PLUS Administration fees $78 per annum ($1.50 per week) plus an assetbased fee of 0.06% per annum of your account balance And, you will be charged $78 in administration fees regardless of your balance plus an asset-based fee of $30 per annum PLUS Indirect costs for the MySuper option EQUALS Cost of product 0.70% per annum (forecast for 2016 17) * And, indirect costs of $350* per annum will be deducted from your investment If your balance was $50,000, then for that year you will be charged fees of $468 for the Statewide MySuper option. Note: Additional fees may apply. And, if you leave Statewide, you may also be charged an exit fee of $50 (if you withdraw/rollover your entire account balance) or $35 (per partial withdrawal/rollover). * The fees stated for 2016 17 are estimated third-party investment management fees (including performance fees), based on our current asset allocation and the investment managers who currently manage money for that investment option. The fees stated are therefore predictive and may differ materially from the fees actually incurred. The actual investment management fees are calculated at the end of each year when returns for the year are known. These are published in the annual report. Warning: additional fees may be applicable, e.g. insurance premiums and/or financial planning fees. Page 6 Fees and costs
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Significant benefits and risks Statewide assists you to save for your retirement in a tax-effective environment. It enables you to tailor your investment strategy to your own needs and attitude to risk, as well as offering you a choice of insurance cover for death, total and permanent disablement and income protection. You should be aware that if you leave the fund within a few years of joining, you may get back less than the amount of contributions paid in because of the level of investment returns earned by the fund, the fund s charges and the impact of tax. This booklet is based on current laws, and laws affecting superannuation may change at any time. The trustee is committed to ensuring that the fund is prudently managed. This commitment is evident via a number of measures such as corporate governance policies and codes of conduct. Information on these can be found on our website. The trustee wants to make the following information clear to you: Neither the performance of the fund, the repayment of capital nor any particular rate of return is guaranteed by the trustee, the investment managers, service providers or associated companies of the parties mentioned in the booklet. Investment markets do fluctuate. If the investment options you choose are not right for you, you may not achieve the goals you set. Member Services: 1300 65 18 65 Email: info@statewide.com.au Address: 211 Victoria Square, Adelaide, SA 5000 Postal address: GPO Box 1749, Adelaide SA 5001 Statewide Superannuation Pty Ltd ABN 62 008 099 223 (AFSL 243171) trustee and RSE licensee of Statewide Superannuation Trust ABN 54 145 196 298. The information provided is of a general nature. It does not consider your specific needs nor is it intended to be financial product advice. You should obtain independent financial advice and consider the applicable product disclosure statement before making an investment decision. Financial information and general advice may be provided by representatives of Statewide Superannuation Pty Ltd ABN 62 008 099 223 Australian Financial Services Licence No. 243171. Any personal advice may be provided by an authorised representative of Industry Fund Services Limited (IFS) ABN 54 007 016 195 AFSL No 232514. Fees may apply for financial planning advice. IFS is responsible for the advice given to you by its authorised representatives. Fees and costs_01072016