VISIBILITY IMPROVES

You can expect to see some changes to how investment fees are disclosed by your superannuation fund, thanks to regulations RG 97 from the Australian Securities and Investments Commission (ASIC).

The changes are designed to bring more consistency to the way funds describe their investment-related costs. This is expected to help members compare products.

But Damian Hill, CEO of REST, says the new disclosures could potentially mislead consumers, as reporting depends on how the assets are held.

But the greater lookthrough of transaction and operating costs is expected to add to current fee structures, says Kirby Rappell, from SuperRatings. “The impact would vary across super funds, with funds investing in alternatives and unlisted assets experiencing higher fee increases,” he says.

Industry super funds hold 9% on average of their assets in unlisted infrastructure. “We expect that many of these fees are deducted from returns currently but are not clearly disclosed as fees in some instances under current reporting requirements.”