We’re a profit-for-members fund, so we only charge fees to run the fund. We don’t have any shareholders to pay dividends to, and we don’t pay commissions to financial advisers. We put our profits back into the fund for the benefit of all our members.
We work hard to keep fees as low as possible. We’re continually improving the efficiency of our operations, so that we can provide a high standard of product, service and benefit to our members.
Additional explanation of fees and costs
Below you will find detailed information about our competitive Administration and Investment fees, as well as a breakdown of the Indirect costs incurred by the fund which are not charged to members as a fee. The information below forms part of the Accumulation account Product Disclosure Statement and also applies to pension members.
The fees to manage your account are split into investment and administration fees.
Regardless of how your super is invested or what kind of account you have, LGIAsuper charges an administration fee of 0.18% p.a.
Investment fees relate to the management of your super into different assets. These fees vary depending on how your super is invested:
|Investment option||Investment fee1 (% p.a.)|
|Diversified Fixed Interest||0.21%p.a|
|SR Australian Shares||0.42%p.a|
The administration fee of 0.18% is subject to a limit of $900 in a financial year. If the total of your eligible account balances at the end of the financial year exceeds $500,000, any administration fee above $900 will be rebated to your account in the following financial year. All your account balances are eligible except for the defined benefit portion of a Defined Benefit account. If you hold more than one LGIAsuper account at the time the rebate is applied, it will be paid in direct proportion to the account balance at that time.
These costs (or ‘premiums’) are to cover any insurance cover you have with us. These fees are deducted from your account each month. For more information about our insurance offering, please refer to our Insurance guide or visit our website here.
If you’re a member, you can login to your account to view your insurance cover and monthly premium.
Performance fees are paid to some investment managers when they outperform a set benchmark. These fees are calculated by comparing the difference between the benchmark and actual performance for each investment, and multiplying the outperformance by the performance bonus rate payable.
Estimated performance fees are included in the Investment fees in the fees and costs tables.
Administration and Investment fees cover the actual costs of administration and investment management paid out of LGIAsuper and, as such, may vary from year to year. The actual investment fees deducted from investment earnings each financial year are reported to you in the Annual Report to members.
Before the start of each financial year LGIAsuper estimates the Investment fees for the year ahead and these estimates only change where necessary to ensure costs are covered.
LGIAsuper reserves the right to make changes to the fees and costs charged without your prior consent. If a change results in an increase in the fees and costs charged, you will be notified at least 30 days' prior to the change taking place.
The cost of providing general advice is included in the Administration fees charged to LGIAsuper members.
Some financial advice services are provided by LGIAsuper Services Pty Ltd (LGIAsuper Services, ABN 49 616 808 970) as a corporate authorised representative (no. 1255725) of LGIAsuper Trustee (ABN 94 085 088 484, AFSL no. 230511).
LGIAsuper does not charge for general or single issue personal advice provided over the phone.
For broader or more complex superannuation advice, fees will apply. The fees will vary depending on the type and complexity of personal advice required and will be confirmed with you during your obligation free appointment.
The fee charged for advice can potentially be deducted from your LGIAsuper. The fees will be explained to you in detail.
For more detail on our financial advice services, please refer to our Financial Services Guide.
Indirect costs are any amounts that we know, or reasonably ought to know, will directly or indirectly reduce the return on your investments that are not charged to your account as a fee, such as transactional and operational costs, costs of derivatives and management costs charged by interposed vehicles.
The Indirect costs in the fees and costs tables are based on the indirect costs incurred calendar year 2020.
|Investment option||Indirect costs ratio1 (% p.a.)|
|Diversified Fixed Interest||0.04%|
|SR Australian Shares||0.12%|
1. Based on actual costs incurred and estimates where actual costs have not yet been incurred.
The transactional and operational expenses of investing, such as brokerage, stamp duty, property operating costs and buy-sell spreads where applicable, are included in the Indirect costs and Indirect cost ratio in the fees and costs table.
|Investment option||Transactional and operational costs included in Indirect costs|
|Diversified Fixed Interest||0.03%|
|SR Australian Shares||Nil|
No transactional and operational costs are charged directly to your account.
LGIAsuper does not borrow money but we invest in fund managers that borrow money to facilitate the purchase of certain investments, such as real property and infrastructure. These costs are recovered from the earnings of the assets purchased with the borrowings. Borrowing costs are not included in any of the fees and costs outlined here and are an additional cost to members.
|Investment option||Borrowing costs not included in Indirect costs|
|Diversified Fixed Interest||Nil|
|SR Australian Shares||Nil|
We think it’s just as important to know what fees LGIAsuper doesn’t charge because even though we don’t charge for these things, other funds might. If you have super with other funds it’s a good idea to see if you’ll be charged any of the following fees.
|Type of fee||What LGIAsuper charges|
|Investment switching fee
A fee for changing a member’s investment strategy.
A fee charged on each withdrawal you make from your super.
A fee charged when a member withdraws their whole super balance from a fund.
A fee for the transaction costs involved in selling or buying assets.
Different fee arrangements apply if you have an LGIAsuper Defined Benefit account. For full details of these fees and costs, see the relevant Defined Benefit guide on our Product Disclosure Statements and guides page.
Legislation allows superannuation funds to charge members various fees, as defined below. However, LGIAsuper does not charge members all of these fees.
The information in the table below provides definitions of the fees super funds are legally allowed to charge. It does not outline the types or costs of fees LGIAsuper charges. To find out more about what fees are charged to your LGIAsuper account please click on the headings above for an explanation of LGIAsuper's fees or see the Fees sections of the Product Disclosure Statements and guides that apply to your account.
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:
An administration fee is a fee that relates to the administration or operation of the superannuation entity and includes costs that relate to that administration or operation, other than:
A fee is an advice fee if:
|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.
An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes:
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.
A switching fee for a superannuation product 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.
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