arrow-downarrow-leftarrow-rightarrow-upcarret-downcarret-leftcarret-rightcarret-upclosedownloadenvelope-altenvelopefacebookhouseinfoinstagramjargon-busterlinkedinlocationmediamenunew-tabpencilphoneprintsearchshareticktooltiptwitteryoutube
Skip to main content

Section 6. Fees and costs

The information in this document forms part of the Hostplus Superannuation Fund and Hostplus Personal Super Plan Product Disclosure Statement 1 July 2017.

As an industry super fund, Hostplus administration fees are a competitive $1.50 a week. Better still, this fee has remained unchanged since 2004. Like all super funds, investment costs do apply. But we do strive to ensure our investment costs are competitive.

Please select a section

6.1 Consumer Advisory Warning

Did you know?

Small differences in both investment performance and fees and costs can have a substantial impact on your long term returns.
For example, total annual fees and costs of 2% of your account balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example, reduce it from $100,000 to $80,000).
You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs.
Your employer may be able to negotiate to pay lower administration fees. Ask the fund or your financial adviser.

TO FIND OUT MORE

If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (moneysmart.gov.au) has a superannuation fee calculator to help you check out different fee options.


6.2 Fees and other costs at a glance

This section shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the fund assets of the superannuation entity as a whole.

Other fees, such as activity fees, advice fees for personal advice and insurance fees may also be charged, but these will depend on the nature of the activity, advice or insurance chosen by you.

Taxes, insurance and other costs relating to insurance are set out in another part of this document.

You should read all the information about fees and costs because it is important to understand their impact on your investment.

The fees and other costs associated with an investment in Hostplus, are set out below.

Hostplus Superannuation Fund

 

Type of fee

Amount

How and when paid

Investment fee

Nil

Not applicable

Administration fee

$78.00 p.a. ($1.50 per week)

Also known as the Member Fee.  The dollar cost is calculated weekly after tax and deducted from your account monthly

Buy – sell spread

Nil

Not applicable

Switching fee

Nil

Not applicable

Exit fee

Nil

Not applicable

Advice fee

relating to all members investing in a particular MySuper product or investment option

Nil

Not applicable

Other fees and costs1

 

 

Indirect cost ratio (ICR) - Investment costs

Varies according to your chosen investment option(s), ranges between 0.00% and 3.83%2

Deducted weekly before the net investment returns are declared

1. See “Additional explanation of fees and costs” for a description of other fees and costs; such as activity fees, advice fees for personal advice, insurance fees and ChoicePlus investment option fees.

2. The ICR – Investment costs are for the financial year ended 30 June 2016 and include performance fees.  The investment costs for future years are not currently known and can be higher or lower.


6.3 Example of annual fees and costs for a MySuper product

This table gives an example of how the fees and costs for the generic MySuper product for this superannuation product can affect your superannuation investment over a 1 year period. You should use this table to compare this superannuation product with other superannuation products.

HOSTPLUS Balanced option

BALANCE OF $50,000

Investment fees

Nil

For every $50,000 you have in the MySuper product you will be charged $0 each year

PLUS Administration fees

$78 ($1.50 per week)

And, you will be charged $78 in administration fees regardless of your balance

PLUS Indirect costs for the MySuper product

1.20%

And, indirect investment costs of $600 each year will be deducted from your investment

EQUALS Cost of product

If your balance was $50,000, then for that year you will be charged fees of $678 for the MySuper product.

Note: additional fees may apply. The figures are current as at 30 June 2016. These are the fees and other costs you pay per year before tax. The net amount you actually pay after tax is $588 per year.


6.4 Additional explanation of fees and costs

Defined fees

1. Administration fee

An administration fee is a fee that relates to the administration or operation of the superannuation entity and includes costs incurred by the trustee of the entity that:

(a) relate to the administration or operation of the entity; and
(b) are not otherwise charged as an investment fee, a buy sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

The administration fee is also known as the ‘member fee’.

2. Indirect Cost Ratio (ICR) – Investment costs

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.

The ICR – Investment costs shows the investment management costs, including performance fees, incurred in connection with each investment option as a percentage of the total average net assets of the relevant investment option. The ICR – Investment costs are not deducted directly from your account but instead are deducted from investment returns before net investment returns are declared for each investment option. The ICR – Investment costs includes all internal and external costs incurred in managing the investment option, including performance fees, brokerage, stamp duty, asset consulting expenses, bank fees and custodian costs. 

In certain circumstances, Hostplus agrees, as part of the fees payable to an investment manager, to pay a performance fee.  Performance fees are payable to investment managers if they outperform required performance targets.  The performance fees payable vary between the underlying investment managers and may change from time to time; hence it is not possible to provide a precise figure for the performance fee for each investment option. The estimated performance fee shown in the table below becomes payable upon the achievement of investment returns in excess of performance targets and they will vary from year to year.

Hostplus believes that members generally benefit from performance fee arrangements as performance fees are only charged when high levels of performance are achieved, enhancing the net-return to members.

The ICR – Investment costs for each investment option for the financial year ending on 30 June 2016 are shown in the table below:

Investment option

Investment Management costs

Performance Fee1

Total Investment Management costs before applicable tax deduction

Total Investment Management costs after applicable tax deduction2,3

Pre-mixed options

Capital Stable

0.60%

0.07%

0.67%

0.57%

Conservative Balanced

0.67%

0.14%

0.81%

0.69%

Socially Responsible Investment (SRI) - Balanced4  1.37% 0.00% 1.37% 1.16%

Indexed Balanced

0.02%

0.00%

0.02%

0.02%

Balanced

0.94%

0.26%

1.20%

1.02%

Shares Plus

0.79%

0.26%

1.05%

0.89%

Hostplus Life: The Shares Plus, Balanced, Conservative Balanced and Capital Stable investment costs (as shown in this table) will apply, as applicable to your lifecycle stage.

Sector investment options

Cash

0.00%

0.00%

0.00%

0.00%

Diversified Fixed Interest

0.20%

0.00%

0.20%

0.17%

Property

0.99%

0.10%

1.09%

0.93%

Australian Shares

0.62%

0.37%

0.99%

0.84%

International Shares

0.68%

0.08%

0.76%

0.65%

Individual manager options

Macquarie Investment Management – Australian Fixed Interest

0.00%

0.00%

0.00%

0.00%

BlackRock Asset Management - International Fixed Interest

0.09%

0.00%

0.09%

0.08%

Industry Super Property Trust – Property

0.36%

0.00%

0.36%

0.31%

Lend Lease managed APPF (Retail, Commercial & Industrial) – Property

0.83%

0.00%

0.83%

0.71%

IFM – Australian Infrastructure

0.64%

0.00%

0.64%

0.54%

Balanced Equity Management – Australian Shares

0.32%

0.00%

0.32%

0.27%

IFM – AustralianShares

0.04%

0.00%

0.04%

0.03%

Paradice Investment Management (Small Cap) – Australian Shares

1.16%

2.67%

3.83%

3.26%

Neuberger Berman - International Shares

1.05%

0.00%

1.05%

0.89%

1. The performance based cost component comprises actual fees paid and estimates of fees to be paid for the financial year ending 30 June 2016.
2. PricewaterhouseCoopers have performed an independent verification of the calculation of the above investment costs and confirmed that they were calculated in accordance with the trustee’s policy.
3. As the investment management costs attract a tax deduction, the total investment management costs after applicable tax deduction is the amount incurred by members. These costs are deducted before the net investment return for each investment option are declared and applied to members’ accounts. The expenses that will be payable for the 2016 –17 financial year will be calculated as at 30 June 2017.
4. The Socially Responsible Investment (SRI) - Balanced investment option was introduced on 28 March 2017.

These ICR – investment costs are based on the 2015 to 2016 year expenses and are the most up-to-date information available as at the date of preparation of this PDS. As a result these figures are indicative only and may change in subsequent years depending on (for example) the performance of each option.

3. Activity fees

A fee is an activity fee if:

1 the fee relates to costs incurred by the trustee of the superannuation entity that are directly related to an activity of the trustee:

(a) that is engaged in at the request, or with the consent, of a member; or
(b) that relates to a member and is required by law; and

2 those costs are not otherwise charged as an administration fee, an investment fee, a buy sell spread, a switching fee, an exit fee, an advice fee or an insurance fee.

Family Law fees

Under family law, your spouse, a person considering entering into a superannuation agreement with you, or their authorised representative, can request information about your account. Hostplus charges a $75 fee for supplying this requested information, which is paid by the person making the application at the time the request is made.

Hostplus also charges a fee of $60 for splitting the interest in your account upon receipt of a splitting agreement or court order, which is deducted from your account at the time the benefit is split.

Dishonoured payment fees

If you make a contribution by cheque or direct debit that is dishonoured, a handling fee of $15 will be deducted from your account.

Contribution splitting fees

A $60 contribution splitting fee will be payable by the splitting member for each transaction which will be deducted from the member’s account.

4. Advice fees

A fee is an advice fee if:

1 the fee relates directly to costs incurred by the trustee of the superannuation entity because of the provision of financial product advice to a member by:

(a) a trustee of the entity; or
(b) another person acting as an employee of, or under an arrangement with, the trustee of the entity; and

2 those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an insurance fee.

Throughout this PDS, advice fees are referred to as “financial planning fees”.

Hostplus offers a financial planning service to its members by Hostplus financial planners licensed by Industry Fund Services Limited (IFS), ABN 54 007 016 195, AFSL 232514.

Members who choose to engage the services of a Hostplus financial planner will receive a fixed quote before proceeding with personal advice services. This quote will be provided to you once the planner has understood and agreed with your specific requirements. The fee (once approved by you) will be charged on a fee for service basis. 

Hostplus members can elect to authorise the fund to deduct all or a portion of the agreed advice fee from their Hostplus account to cover the cost of personal advice that relates solely to the members’ interest in Hostplus (please note; conditions apply).

For more information or to arrange a consultation, simply call us on 1300 467 875 or refer to our Financial Services Guide (FSG).

5. 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.

6. 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.

7. Investment fees

An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes:

(a) fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and
(b) costs incurred by the trustee, or the trustees, of the entity that:

i  relate to the investment of assets of the entity; and
ii  are not otherwise charged as an administration fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

Please note that performance fees are included in the ICR.

8. Switching fees

A switching fee is a fee to recover the costs of switching all or part of a member’s interest in the superannuation entity from one class of beneficial interest in the entity to another.

Other fees and costs

1. Fees for the ChoicePlus investment option

The fees set out below are current at the date of this publication but may vary from time to time in the future.

For more information about ChoicePlus download the ChoicePlus Guide

Portfolio administration fee

In addition to our standard $1.50 per week administration fee, the ChoicePlus investment option has a portfolio administration fee of $15.00 a month ($180.00 a year including GST). The portfolio administration fee will be deducted from your Hostplus ChoicePlus transaction account at the end of each month.

A portfolio administration fee will be payable for each Choiceplus account held by you.

Brokerage fees for shares, ETFs and LICs

Whenever you buy and sell shares, ETFs or LICs there are brokerage fees that apply. The applicable fees are shown in the table below.

Brokerage fee per trade

Transaction value

Brokerage fee*

$0.00 to $10,000.00

$19.95

$10,000.01 to $27,500.00

$29.95

$27,500.01 to $250,000

0.11% of trade value

*Fees are exclusive of Goods and Services Tax (GST).

The brokerage fee payable depends on the transaction amount and where it falls within the above ranges (only one range is applicable per trade). For example, a $9,000 trade would incur a brokerage fee of $19.95 (exclusive of GST). A $24,000 trade would incur a brokerage fee of $29.95 (exclusive of GST) – and if you placed a $45,000 trade, your total brokerage would be calculated as:

$45,000 X 0.11% = $49.50 (exclusive of GST).

* Brokerage fees are subject to Goods and Services Tax at the rate of 10%. A refund (for the reduced input tax credit) of 75% of the GST paid will be credited to members’ accounts at the time of settlement. For example, brokerage fees of $19.95 are subject to GST of $1.99.  Members will be credited 75% of the GST paid i.e. $1.50. 

For any limit/market orders not fully executed on the same trading day, normal brokerage will be charged for the portion executed each day.

Management fees for Exchange Traded Funds (ETFs) and Listed Investment Companies (LICs)

Fees for ETFs and LICs are generally lower than traditional managed funds. Management fees, custody costs and other expenses are included in the ETF and LIC fees and deducted from the returns of the underlying securities in the ETF or LIC. This means the price quoted on the ASX for each ETF or LIC reflects all fees and expenses incurred in the management of the ETF or LIC. These fees may cause the total return of the ETF or LIC to be different to the return of any underlying index which the ETF or LIC may track.

Choiceplus asset transfer fees

Hostplus does not charge for asset transfers. For more information asset transfers please see 5.33 A closer look at our Choiceplus option or the Choiceplus guide available at hostplus.com.au 

2. Insurance fees

A fee is an insurance fee if:

(a) the fee relates directly to either or both of the following:

i  insurance premiums paid by the trustee of a superannuation entity in relation to a member or members of the entity;
ii costs incurred by the trustee of a superannuation entity in relation to the provision of insurance for a member or members of the entity

Applicable insurance premiums are deducted from your account on a monthly basis. See Section 8 for information on the premiums associated with your insurance cover.

3. Superannuation tax

See Section 7 for information on tax. Please note; all fees and costs are inclusive of GST (unless otherwise stated) less any input tax credits and stamp duty (if applicable). The fund passes on any tax deduction on investment costs in the form of higher returns. For more information on tax and your Choiceplus investment options please refer to the Choiceplus Guide available at hostplus.com.au

4. Alteration to fees and costs

We undertake to notify all Hostplus members of any change in fees and costs at least 30 days before the change takes effect. In addition, we may introduce or increase fees at our discretion, including where increased charges are incurred due to government changes to legislation; increased costs; significant changes to economic conditions and/or the imposition or increase of processing charges by third parties.

This document does not and is not intended to contain any recommendations, statements of opinion or advice. The information is factual and / or general in nature and does not consider any of your objectives, financial situation or needs. You should consider obtaining advice from a licensed financial and taxation adviser and consider the appropriateness of this information, having regard to your particular investment needs, objectives and financial situation.

Host-Plus Pty Limited ABN 79 008 634 704, AFSL No. 244392, RSEL No. L0000093, MySuper No. 68657495890198, Hostplus Superannuation Fund ABN 68 657 495 890, RSE No. R1000054.


Download the full Member PDS

Everything you need to get the most from your super.

Download PDF (4.25 MB)