Account Costs

What is it?

The investment management fees shown in the table below should be treated as an estimate and include costs payable to investment managers, asset consultants and custodian. The investment management fee may vary depending upon factors such as the mix of investment managers used within the various investment options.

How it works

Performance fees are paid to some investment managers when performance exceeds a predetermined objective. Performance fees payable in the future cannot be predicted and are not included in the table. If all managers who could earn a performance-based fee were to meet their performance objective, the investment management fee would increase by an amount in the range of 0% to 0.19%.

If the performance fee is incurred, that means that an investment manager has delivered performance that more than compensates for the fee increase.

Investment Manager fees

Pre-mixed options

Investment option Indirect cost breakdown base
fee % p.a.
Performance fees % p.a.
(estimate)
Indirect Cost Ratio % p.a.
(estimate)
Defensive 0.48 0.01 0.49
High Growth 0.66 0.03 0.69
Balanced 0.52 0.04 0.56
Socially Responsible Diversified 0.75 0.04 0.79
Diversified (MySuper)1 / Diversified 0.66 0.04 0.70
Moderate Growth2 0.54 0.03 0.57
Indexed Growth 0.17 0.00 0.17
Shares Plus 0.65 0.00 0.65
Income Generator3 0.64 0.01 0.65

* Additional fees may apply including an exit fee deducted when a withdrawal is processed. (Note: the exit fee does not apply to transfers to the NGS Income account, Transition to retirement account or lump sum payments from these accounts)

1 Diversified (MySuper) is the default investment option and only available with the Accumulation account. Diversified is available only to Transition to retirement and Income account members. From 1 July 2017, Diversified will no longer be available to Transition to retirement account members and will be replaced with Diversified (MySuper) which will become the new default investment option for Transition to retirement accounts.

2 This option is not available for the Accumulation account. From 1 July 2017, this option will not be available for the Transition to retirement account.

3 This option is closed to new applicants. It will be closed permanently to:
* Transition to retirement account members from 30 June 2017; and
* Income account members from 31 July 2017.

Sector specific options

Sector specific options
Cash and Term Deposits 0.14 0.00 0.14
Diversified Bonds 0.49 0.00 0.49
Property 0.62 0.03 0.65
Australian Shares 0.45 0.00 0.45
International Shares 0.53 0.00 0.53

Example Diversified (MySuper)

EXAMPLE OF ANNUAL FEES AND COSTS FOR THE DIVERSIFIED (MYSUPER) INVESTMENT OPTION

The table below gives an example of how the fees and costs in the Diversified (MySuper) investment option for the Accumulation account can affect your super investment over a one-year period. You should use this table to compare NGS Super with other super products.

EXAMPLE
The Diversified (MySuper) investment
option for the Accumulation account
Balance of $50,000
Investment fees Nil For every $50,000 you have in Diversified (MySuper) you will be charged $0 each year

PLUS

Administration Fees

$65
($1.25 per week)

PLUS 0.10% p.a of your account
balance capped at $500 p.a.*

And you will be charged $65 in administration fees regardless
of your balance

PLUS $50 each year.

PLUS

Indirect costs1
for the Diversified
(MySuper) investment
option

0.70% p.a. And, indirect costs of $350 each year will be deducted from your investment.

EQUALS

Cost of Diversified (MySuper) account.

If your balance was $50,000 then for that year you will be
charged fees of $4652 for the Diversified (MySuper) Account.

Note: This example assumes no insurance. If insurance cover is taken, insurance fees (premiums) will apply. For more information, refer to the Insurance Guide.

1Indirect costs shown in these examples are estimated fees for the 2016/17 financial year – actual fees will vary from year to year and will be shown in that year’s Annual Report.

2Additional fees may apply. If you withdraw a lump sum from your Accumulation account you will be charged a withdrawal fee (no fee applies for transfers to an NGS Income account, Transition to retirement account or lump sum withdrawals from your these accounts).

* If at 30 June you have paid an asset-based fee greater than $500 since the previous 1 July, a fee rebate will be credited to your account if you are still a member of NGS Super at the time the rebate is to be credited. The rebate will be in the form of additional units.

Income tax and fees

FEE INCREASES OR ALTERATIONS

The Trustee has the right to increase fees at any time. Reasons might include changes in economic conditions or government regulations, increases charged by suppliers or a substantial reduction in the size of the Fund. If the Trustee increases any of the fees that are deducted directly from your account, you willreceive at least 30 days notice of any increase in fees. The fees and expenses relating to investment reflect costs paid by the Fund to external providers and may change from time to time. These changes will always be advised in the Annual Trustee Report.

NEGOTIATED FEES

NGS Super is an industry super fund and operates on a profit for members only basis. The Fund fees are non-negotiable.

GST
Fees and costs shown in the “Fees and Charges” section of the Member Guide (PDS) include GST and stamp duty if applicable.
INCOME TAX AND ITS EFFECT ON FEES

Tax is payable on investment earnings of the fund at a maximum rate of 15%. However as the fund is allowed a tax deduction in respect of certain fees and costs the rate of tax actually payable by the fund may be less than 15%. The benefit of any income tax deductions is passed on to members indirectly when the Trustee determines unit prices.

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