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Understanding fees and other costs

Fees and other costs can have an impact on the value of your investment, so it’s important to understand what you can expect to pay.

The type and amount of fees and other costs vary depending on factors such as the amount invested and the investment option(s) you choose.

The fees and other costs you may be charged will be set out in the relevant disclosure document, such as a Product Disclosure Statement (PDS). Make sure you read the disclosure document for details of the specific fees and other costs that may apply before you invest.

Fee types explained

The likely fees and other costs that may apply to your investment are summarised below. For the full list of fees and other costs relating to your Colonial First State investment, please refer to the relevant PDS.
 

Superannuation and pension


  • An administration fee relates to the general administration of the superannuation fund. It can be charged as either a percentage of your account balance, a fixed fee, or both.

     

    The regulatory reform fee may be deducted annually from your account. This fee of up to 0.20%, capped at a maximum of $40, will be charged to accounts with a balance of $5,000 or more as at 31 December. New accounts created after 31 December will generally be excluded from this fee. This fee will be shown on your statements.

  • When you invest, switch or withdraw all or part your investment, this may result in the buying or selling of the assets of the investment option. The buy/sell spread is an estimation of costs that will be incurred in the buying and selling of an option’s assets. The spread is paid to the investment option and is a cost only applied to the amount of your transaction.

  • An investment fee may be charged in relation to investing your money.

  • These costs are deducted from the underlying assets of the option and are reflected in the daily unit price for that option. Depending on the cost, they may be deducted daily, monthly or at some other time.

  • If you use a financial adviser, he or she may charge a fee for giving advice on your investment. You may also agree with your financial adviser to pay a separate licensee service fee for the cost of services provided by their licensee (dealer group). These fees can be paid directly from your investment. You can review your fee arrangements with your adviser at any time.

How fees and costs can affect your investment

Example: FirstChoice Wholesale Superannuation

This table provides an example of how fees and costs in the Colonial First State Wholesale Diversified option for the FirstChoice Wholesale Superannuation product can affect your investment over a one-year period.
 

Colonial First State Wholesale Diversified Option   Balance of $50,000

Investment fees

0.80% pa

For every $50,000 you have in the superannuation product, you will be charged $400 per year

PLUS

Administration fees

0.20% pa

And, for every $50,000 you have in the balanced investment option, you will be charged $100 per year.

 

And, on an account balance of $50,000 you will incur a Regulatory Reform Fee of $40 per year.

PLUS

Indirect costs for the superannuation product

0.09% pa

And, indirect costs of $45 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 $585 for the superannuation product



Additional fees and other costs may apply. And, if you leave the superannuation entity, you may be charged a buy/sell spread which also applies whenever you make a contribution, exit, rollover or investment switch. The buy/sell spread for exiting is 0.20% (this will equal $100 for every $50,000 you withdraw).

These figures are inclusive of the net effect of GST. This does not take into account any portfolio rebates you may be entitled to and which may reduce the fees and costs of your investment. Please refer to page 24 of the PDS for more information on the Regulatory Reform Fee.

Please note that this is just an example. In practice, the actual investment balance of an investor will vary daily, and the actual fees and expenses we charge are based on the value of the option, which also fluctuates daily. Buy/sell spreads also apply. Refer to pages 10 to 18 in the PDS for further detail.


 

Investments


  • Management costs relate to the fees and costs for managing your investment. They include management fees, performance-related fees, investment expenses and custody fees. They are usually charged as a percentage of your investment balance (i.e. they are not charged directly to your account).

  • When you invest, switch or withdraw all or part your investment, this may result in the buying or selling of the assets of the investment option. The buy/sell spread is an estimation of costs that will be incurred in the buying and selling of an option’s assets. The spread is paid to the investment option and is a cost only applied to the amount of your transaction.

  • A contribution fee is a fee charged on each amount contributed to your investment.

  • If you use a financial adviser, he or she may charge a fee for giving advice on your investment. You may also agree with your financial adviser to pay a separate licensee service fee for the cost of services provided by their licensee (dealer group). These fees can be paid directly from your investment. You can review your fee arrangements with your adviser at any time.

How fees and costs can affect your investment

Example: FirstChoice Wholesale Investments

This table provides an example of how fees and costs in the Colonial First State Wholesale Diversified option for the FirstChoice Wholesale Investments product can affect your investment over a one-year period.  

Colonial First State Wholesale Diversified Option   Balance of $50,000 with a contribution of $5,000 during year
Contribution fees 0% For every additional $5,000 you put in, you will be charged $0.

PLUS

Management costs

0.96% pa And, for every $50,000 you have in the balanced investment option, you will be charged $480 each year

EQUALS

Cost of Colonial First State Wholesale Diversified option

 

If you had an investment of $50,000 at the beginning of the year and you put in an additional $5,000 during that year, you will be charged fees of up to $528.

What it costs you will depend on the investment option you choose and the fees you negotiate.



These figures are inclusive of the net effect of GST. Additional fees and other costs may apply.

 

Establishment fee: $0.

 

Please note that this is just an example. In practice, the actual investment balance of an investor will vary daily, and the actual fees and expenses we charge are based on the value of the option, which also fluctuates daily. Buy/sell spreads also apply. Refer to pages 7 to 10 in the PDS for further detail.

Need more information?

Talk to your financial adviser to learn more about the fees and other costs you may be charged in relation to your investment. Alternatively, the Australian Securities and Investments Commission (ASIC) MoneySmart website has a range of resources which you might find useful. For example, you can find out more about super fee types, calculate how fees affect your investment, or learn more about how super funds invest your money.
 

Disclaimer
Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) is the issuer of super, pension and investment products. This document may include general advice but does not take into account your individual objectives, financial situation or needs. You should read the relevant Product Disclosure Statement (PDS) carefully and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. A PDS for Colonial First State’s products are available at colonialfirststate.com.au or by calling us on 13 13 36.