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Industry fund doubles down on fee cuts

An industry super fund has announced another fee reduction for members, marking the third cut in two years.

Vision Super chief executive Stephen Rowe said the fund's focus on cost reductions has allowed it to steadily reduce member fees over the last few years.

Rowe said as a result of these measures over $150 million in costs has been taken out of the business.

The total fees on a $50,000 balance have been cut from $488 to $463 for default Super Saver members.

In September 2017, total fees were $538 so Vision Super said reducing that to $463 in just three years represents a substantial achievement.

The total fees on a $50,000 balance for Vision Personal - Sustainable balanced option - the lowest cost sustainable balanced product - have been cut from $238 to $223 on a $50,000 balance.

Vision Personal's low cost, low carbon Sustainable balanced option was the winner of Financial Standard sister publication Money magazine's 'Best of the best' award for the lowest cost superannuation platform.

The total fees on a $50,000 pension balance have been cut from $515 to $490.

"At Vision Super, we're always focused on getting the best possible retirement outcome for our members," Rowe said.

"Our focus on cost reduction hasn't come at the expense of investment returns - our MySuper default Balanced growth option is top three over the last financial year, and top ten over all periods up to ten years.

Rowe added that in addition to the fee cuts, the majority of the funds other options are top quartile.

"We're delighted to announce this further reduction in fees, which means more money for members' retirements," Rowe said.

"We're charging substantially less than some of the biggest funds in the country charge, and our returns speak for themselves."

Vision also recently updated its investment strategy as a result of significant changed in the economic and fixed income environment.

Vision said it reviews its investment strategy annually and changes were made this year as an adjustment to volatility caused by the COVID-19 pandemic.

Read more: Vision SuperStephen RoweFinancial Standard
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