Spaceship Super ups fees on private credit exposure

Spaceship Super is increasing its investment fees across its GrowthX, Balanced and Moderate options after adding exposure to unlisted asset classes.

GrowthX investment fees will rise from 0.243% to 0.267% per annum, the Balanced option will rise from 0.249% to 0.256% per annum, and the cost for the Moderate option will rise from 0.235% to 0.257% per annum.

"The increase in investment fees and costs reflects the introduction of unlisted asset classes into the GrowthX, Balanced, and Moderate investment options," Spaceship Super said.

"These asset classes typically carry higher management costs than listed investments, but the trustee considers these costs to be appropriate given the expected improvement in risk-adjusted returns and downside protection they provide."

In the GrowthX option, the super fund is slightly reducing exposure in Australian and international equities, while raising exposure to listed and unlisted property from 10% to 21%.

It's applying the same changes for the Balanced option, while also increasing exposure to Australian and international fixed interest, which includes the introduction of private credit in the portfolio.

For the Moderate option, Spaceship Super is reducing exposure to real assets and Australian fixed interest, while increasing exposure to international fixed interest by 10%.

"The Balanced and Moderate options were trending toward a higher risk classification than intended, due to changes in how equities and bonds are expected to behave in current market conditions," Spaceship Super said.

"The addition of unlisted assets - specifically Australian unlisted property and private credit - is expected to improve risk-adjusted returns and provide better downside protection for members across GrowthX, Balanced, and Moderate."

The Global Index option is not affected by the changes.

For a member with a $50,000 balance, the change would mean a rise of $24 in the GrowthX option, and a rise of $12.5 and $18.5 for the Balanced and Moderate options respectively, on an annual basis.