Super fund increases fees

A $12 billion superannuation fund has made a series of changes to its administration and investment fees.

As of July 1, LGIAsuper has introduced a flat administration fee of $1.50 per week across all of its investment options, including diversified investments, single asset class and socially responsible options.

Members within its Under 75 option will now pay an administration fee of 0.18% plus the flat fee of $1.50 per week. This was previously just 0.21%.

Those within the 75 Plus strategy now pay an admin fee of 0.18% plus the flat fee of $1.50 each week. This too was previously just 0.21%.

Investment fees across both have also changed with that of the Under 75 option increasing from 0.45% to 0.48%, and fees on the 75 Plus option jumping from 0.42% to 0.44%.

For Under 75, the total cost of the product now comes to 1.2% - up 0.16% - translating to $598 for a balance of $50,000.

For 75 Plus, the total cost has jumped from 1% to 1.15%, translating to $573 for a $50,000 balance.

LGIAsuper's cap on administration fees of $1575 per year remains unchanged, as do the fund's insurance premiums and indirect cost ratios.

Read more: LGIAsuper
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