QSuper cuts administration fees

QSuper has cut its administration fee from 18 basis points to 16 basis points - its third cut to admin fees since 2015.

Yearly administration fees will be capped at $900 a year, starting with distributions paid out in July, 2019. It was $1000 previously.

The pared back admin fees apply to all member accounts in all options, QSuper chief executive Michael Pennisi told Financial Standard.

"In 2015, we did a root and branch review of our business. As a part of it, we have limited the growth in operating expenditure to 3% p.a. which is below the industry average," Pennisi said.

The admin fee cuts have been made possible by investing in the right people, monitoring the operational expenditure and investing in technology, he said.

He said the fund has made a $40 million investment in technology on core systems, over two years. This has enabled it to automate back-office functions.

"We are very member-focused and are not cutting back on personalised services for our member," he said.

The fund's admin fees include member services such as: a contact centre, seminars, website, and communications. It is done in-house, Pennisi said.

It first cut its admin fee in 2015 (from 22 bps to 20 bps), followed by another cut in 2017 (from 20 bps to 18 bps).

Michael Pennisi was appointed the fund's chief executive in August 2015, taking over after Rosemary Vilgan left in July that year.

QSuper's administration fee expenses were $159 million in 2017 and $147 million in 2016.

The reduced admin fee came into effect July 1.

Updates with size of tech investment in sixth par, 2:21pm

Read more: Michael PennisiFinancial StandardRosemary Vilgan
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