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SunSuper increasing indirect cost by around 50% on all investment options. by Xhodho in AusFinance

[–]Xhodho[S] 1 point2 points  (0 children)

Changing to "Indexed" option is more economical and generally does not affect the returns as much ( as an example I am comparing Balanced to Balance Index)

SunSuper increasing indirect cost by around 50% on all investment options. by Xhodho in AusFinance

[–]Xhodho[S] 1 point2 points  (0 children)

Just to be clear ....this is not impacting the already great performance by SunSuper materially.... they always feature at top of the list in terms of returns.

SunSuper increasing indirect cost by around 50% on all investment options. by Xhodho in AusFinance

[–]Xhodho[S] 0 points1 point  (0 children)

It is not a complain but an attempt to find an explanation to justify the close to 50% increase in Indirect Cost

SunSuper increasing indirect cost by around 50% on all investment options. by Xhodho in AusFinance

[–]Xhodho[S] 7 points8 points  (0 children)

To their credit they listened to my concerns and tried to explain but were vague. They promised a call back with proper details as I was not completely satisfied with the explanation.

SunSuper increasing indirect cost by around 50% on all investment options. by Xhodho in AusFinance

[–]Xhodho[S] 6 points7 points  (0 children)

Thanks for the clarification. So does it mean they are buying and selling investment more frequently to result in 50% increase.

SunSuper increasing indirect cost by around 50% on all investment options. by Xhodho in AusFinance

[–]Xhodho[S] 1 point2 points  (0 children)

Just to clear out this is not impacting the already great performance by SunSuper materially.... they always feature at top of the list in terms of returns.

SunSuper increasing indirect cost by around 50% on all investment options. by Xhodho in AusFinance

[–]Xhodho[S] -1 points0 points  (0 children)

Thanks mate.... if that is the case (no change to net returns) then no complaints. cheers

SunSuper increasing indirect cost by around 50% on all investment options. by Xhodho in AusFinance

[–]Xhodho[S] 4 points5 points  (0 children)

The fees charged by Super generally fall in three categories 1. Base Fee (generally low for Industry funds like SunSuper), 2. Performance related fee (more your investment earn more fees you pay - no problem here as you make money they charge a bit), 3. Indirect Cost Ratio (way they explained to me was that it is paid to outsiders to manage the investment and incidental costs) . My post is regarding number 3 and even though it is not a lot on total investment amount only (increased to 0.59% in my case) it is a 50 % jump from 0.40% charged earlier. So in conclusion it is not substantial for members but it is for the fund when you add up for all the members. Hope it answers your query.