Understanding your Mercer Super Trust fees

In this article we explore:

• The different types of superannuation fees
• Where to find out more about your superannuation fees
• Understanding your superannuation fees
   

The different types of superannuation fees

If applicable, fees and costs may be deducted from your super account balance, from your investment returns or from the assets of the Mercer Super Trust as a whole.  Common fees and costs include: 

• Administration fees and costs – these fees relate to the administration and operation of the super fund.  Generally speaking, the administration fees cover communications and information technology, as well as costs associated with the administration of your Plan in the Mercer Super Trust, as well as product and strategic services.
  
  
• Investment fees and costs – these fees are generally payable to the underlying investment managers who exercise care and expertise relating to the investment of assets. The Mercer Super Trust does not directly charge performance fees; however, performance fees may be charged by underlying investment vehicles or managers. In these circumstances they are included in the investment costs. 
  
  
• Transaction costs – covers the costs associated with the purchase and sale of assets of the super fund.  For example, transaction costs can include brokerage or stamp duty.
  
  
• Intrafund and Advice fees – in the Mercer Super Trust, fees for intrafund advice, sometimes referred to as ‘limited financial advice’, are included in the administration fees and costs.  If you are a member of the Mercer Super Trust you can access a further range of financial advice and negotiate fees with your Mercer financial adviser.

Other fees may apply from time to time.
 

Where to find out more about your superannuation fees

Generally, you can find your fees detailed in your Plan’s Product Disclosure Statement, found at www.mercersuper.com.au/pds, and where applicable your ‘Your Plan Details guide’, by using your personal login at mercersuper.com.au/login. You can also read your annual statement, which will show the total dollar value charged in fees for the statement period. 

Choosing a super fund based only on its fees and charges may be counterproductive. You may also want to consider factors such as its values, investment returns and ethical and social governance agenda and commitments. Before making any decisions concerning your super you should obtain detailed advice from a licensed or appropriately authorised financial adviser. 

Understanding your superannuation fees

Any fees and costs can have an impact on the long-term returns of your super account. So it is important to understand what fees your super fund is charging and how they compare to other funds, while also factoring in whether investment performance and member services may justify higher fees and costs.

To compare super fees and investment performance, please see the Australian Taxation Office’s YourSuper comparison tool.