Some of our investment managers may be entitled to receive performance fees (in addition to base fees) if they generate strong investment returns above an agreed benchmark. Where applicable, performance fees are paid on the percentage of the performance above the agreed benchmark, and will result in higher investment fees and costs.
Performance fees are included in the investment fees and costs (see above), where applicable.
In summary, government regulations require that we disclose performance fees calculated on the basis of accrued performance fees averaged over the previous 5 financial years, except where an average over 5 years is not available.
Due to our merger with QIEC Super in May 2019, we have limited information on our investment option performance history. Therefore, our performance fees are averaged over the last 4 financial years to 30 June 2021. We expect to change this to a 5-year average following financial year end 2021/22.
The average performance fees are shown in the tables below. The amount of performance fees paid by us in each year will change depending on the level of performance the relevant managers generate. The actual amount of performance fees that you will incur in the current and subsequent financial year(s) depends on the investment option(s) you are invested in and the amount of performance fees accrued in relation to the investment option(s) from year to year.