Fees and costs

Fees and costs

CareSuper is a ‘profit for members’ fund committed to maximising members’ retirement savings. Therefore, fees are structured only to cover costs, not to make a profit for shareholders.

The Trustee always aims to minimise investment fees, but is also focused on achieving strong long-term returns, which have a significant impact on members’ account balances. This combination of fees and investment returns is why we highlight the importance of ‘net benefit’. Find out more about this approach below.

Understanding fees and costs

We believe it is important to ensure our fees are transparent and easy to understand. It is our policy to include underlying investment costs in fees disclosed to members, and we have always done so.

Indirect investment costs cover the cost of investing the Fund’s assets and include base and performance fees paid to investment managers, asset consultant fees, bank fees and custody costs. Performance fees may be paid to an investment manager whose fee is linked to investment outcomes and are paid when the manager’s portfolio performs above an agreed benchmark. CareSuper has a number of managers whose fees are aligned to their performance, predominantly in the Australian shares and alternatives asset classes. Where a performance fee is paid, a lower base fee applies.

These fees, known as the indirect cost ratio (ICR), are not taken directly from members' accounts, but deducted from investment earnings over the year and reflected in the calculation of unit prices. These investment expenses change from time to time because of changes in managers, performance and/or other fees. Any revisions to the ICR for an investment option will be available at caresuper.com.au.

Contributions tax

Contributions tax is deducted from employer and salary sacrifice contributions after the deduction of the administration fee and insurance premiums.

Estimated annual investment cost or Indirect Cost Ratio (ICR)

While the Trustee understands the importance of net returns, minimising investment costs is an ongoing goal for CareSuper.

CareSuper has always sought to demonstrate best practice and transparency around disclosure of all costs, including those relating to investments. One component of the ICR relates to manager costs which are incurred when a fund manager appointed by CareSuper in turn invests in a number of investment managers (referred to as ‘fund of funds’). This is an additional layer of costs that may not be disclosed by some super funds and may be why CareSuper’s ICR may appear higher than that of some other funds. CareSuper considers full disclosure of these costs as best practice and expects that more funds will report these fund of funds costs in the future.

The ICR varies according to the investment option. These costs are not deducted directly from an account but are deducted over the year from unit prices. Performance costs are deducted from unit prices as relevant investment manager performance objectives are met.

Find out more

For information on the fees and costs associated with a CareSuper account, see Fees and other costs, or read the Pension Guide.

The net benefit of a CareSuper account

See the difference not just fees but also investment performance have made over 10 years on the same starting balance. Over 10 years, the CareSuper Balanced option returned over $26,000* more than the average of retail super balanced options surveyed by independent ratings agency SuperRatings.

CareSuper's net benefit as at 30 June 2016

* Comparisons modelled by SuperRatings, commissioned by Industry Super Australia Pty Ltd ABN 72 158 563 270 Corporate Authorised Representative No. 426006 of Industry Fund Services Ltd ABN 54 007 016 195 AFSL 232514. Modelled outcome assumes a starting balance of $50,000 and initial salary of $50,000 and shows the difference in net benefit of CareSuper’s Balanced option and the main balanced options of the retail funds surveyed by SuperRatings, taking into account historical earnings and fees – excluding contribution, entry, exit and additional advisor fees – of the main balanced options. Outcomes vary between individual funds. The number of retail super funds surveyed varies for each period. Modelling as at 30 June 2016. Full assumptions of this modelling are available from industrysuper.com/footer/assumptions.
This information is general advice only and has been prepared without taking into account your particular financial needs, circumstances or objectives. You should consider your own investment objectives, financial situation and needs and read the appropriate product disclosure statement before making an investment decision. You may also wish to consult a licensed financial adviser. Past performance is not a reliable indicator of future performance and you should consider other factors before choosing a fund or changing your investments.

Financial statements

In order to maintain a healthy Fund, CareSuper’s Trustee Board keeps a close watch on investment performance and spending. The result is a financially fit Fund.

CareSuper’s financial statements can be viewed online. For a printed copy of the financial statements, call the CareSuperLine on 1300 360 149.

This website has been optimised for viewing in most current browsers
(Safari, Firefox, Chrome and Internet Explorer).

Due to the size and graphics it is only viewable on a desktop computer

or a tablet in landscape mode.

You can download the Annual Report in PDF format here.

Contact us