If you’re a super fund member, it’s important to understand exactly what you’re paying for. That’s why we’ll always be clear and open about any changes we make to fees or charges and give you at least 30 days’ notice prior to any increase on the current fees you pay.
Many super funds, like FirstChoice Employer Super, rely on the services of a ‘custodian’. This is the financial institution that holds and keeps the fund’s assets secure. The custodian charges a ‘custody fee’ for this service.
In most cases, the member is charged the custody fee, it forms part of your overall investment fee. But if part of/ or all of your super balance is invested in a FirstChoice Lifestage option, we currently pay this fee to the custodian on your behalf.
From 1 November 2017, we’ll no longer pay the custody fee for the FirstChoice Lifestage investment options. So, if part of/ or all of your super is invested in FirstChoice Lifestage, you’ll be charged a custody fee up to 0.03% p.a. of your balance that is invested in a MySuper Lifestage option. This amount will be reflected in your overall investment fee. You’ll see this increase in the updated fee table in our Product Disclosure Statement (issued in September 2017) and in your ongoing member statements.
Which investments will be affected?
The fee increase will only apply to FirstChoice Employer Super members who are invested in the Lifestage options. That’s because our other investment options available in FirstChoice Employer already have the custody fee included in the overall investment fee.
What does it mean for you?
If your super is invested in a FirstChoice Lifestage option, the investment fee charged for the balance invested in a Lifestage option will increase by up to 0.03% p.a. The custody fee payable may vary depending on the Lifestage option you are invested in.
Want more information?
Speak to your financial adviser or call us on 1300 654 666, Monday to Friday, 8am to 7pm Sydney time.
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.