Changes to investment fees and costs
Qantas Super incurs investment related fees and costs in the management of our investment portfolio, such as investment manager base fees, investment manager performance fees, brokerage, and stamp duty. Rather than being charged directly to you as a member, like an Administration fee, these investment related fees and costs are deducted from the credited interest rates we publish weekly.
Legislation requires that Qantas Super’s disclosure documents state the investment fees and costs incurred for each investment option for the prior financial year. The one exception is for investment manager performance fees, which legislation requires disclosure as the average across the previous five years.
The table below outlines the investment related fees and costs for each investment option for the financial year ending 30 June 2022, which are included in our disclosure documents dated 1 July 2022. They are higher than last year. The investment related fees and costs are different for each investment option and are calculated as a percentage of your balance.
| Option | Investment fees and costs1 | Transaction costs |
|---|---|---|
| Glidepath: Take-Off | 1.03% | 0.13% |
| Glidepath: Altitude | 1.02% | 0.11% |
| Glidepath: Cruising | 1.04% | 0.10% |
| Glidepath: Destination | 1.09% | 0.09% |
| Aggressive | 1.03% | 0.13% |
| Growth | 1.02% | 0.11% |
| Balanced | 1.09% | 0.09% |
| Conservative | 1.03% | 0.07% |
| Thrifty | 0.13% | 0.06% |
| Cash | 0.06% | 0.01% |
1These figures include investment manager performance fees which have been averaged over the previous five years.
For an estimate on the total amount of fees and costs being incurred by our MySuper products in the current financial year you can visit our MySuper product dashboard. You can also find information on the fees and costs that apply to other Divisions here.
Why did the investment fees and costs increase?
You may have noticed that your investment related fees and costs were higher this year than they were last financial year. The largest component of the investment related fees and costs for the past financial year, and the key reason for the increase, was performance fees. A performance fee is a payment made to an external investment manager when they generate returns that exceed the target set for them. In short, it is a reward for delivering terrific investment returns for members.
Qantas Super invests in a range of different asset classes, including listed equity, private markets, and fixed interest. During the 2021/22 financial year, several of our private markets managers performed very well indeed and in doing so earned performance fees. This terrific performance led to Qantas Super delivering strong returns for members compared to most other superannuation funds during 2021/22.
For our more fee-conscious members we launched a new investment option, called Thrifty, on 1 July 2021. Thrifty is invested in a diversified mix of low-cost growth and defensive investments across listed equity and fixed interest. Due to its investment strategy and its lack of exposure to private markets it has much lower investment related fees and costs than our other diversified investment options.
It’s important to remember that the returns you see on our website and on your statement are shown after they’ve been adjusted for investment fees and tax.
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