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REI Super makes drastic fee changes

REI Super is overhauling the way it charges both administration and investment fees, with most members expected to pay less from October 28.

Currently, the $2 billion industry fund charges administration fees as a flat $1.65 per week plus 0.25% of a member's account balance.

From October 28, REI Super is dropping the $1.65 flat charge and going forward with just the percentage-based fee.

The fund is also lowering investment fees across many of its options and making changes to the indirect cost ratios applied.

For example, for the balanced MySuper option, the investment fee is increasing slightly from 0.58% to 0.60% while the ICR is being reduced marginally from 0.12% to 0.11%.

This, coupled with the changes to admin fees, will see a member with a $50,000 balance go from paying 1.12% to 0.96%.

The changes also apply to the fund's pension offerings.

A pension phase member in the balanced MySuper option will see their investment fee increase from 0.57% to 0.60% while the ICR drops from 0.11% to 0.06%. In total, on a $50,000 balance, they'll pay 0.91% - down from 1.10%.

In the year to August 31, REI Super's balanced MySuper option returned 20.6% and ranked 17th in Rainmaker's analysis. Over both three and five years it has returned 7.2%.

However, its growth option ranked second for its performance to August end, achieving 28.2% for the year.

Read more: REI SuperMySuperRainmaker