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.
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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.