For people considering switching super fund providers I just wanted to highlight some upcoming changes to fees.
For people using or considering AustralianSuper Member Direct to invest in ETFs or term deposits the annual fee is rising to $395. As I recently mentioned they have improved the ETF offerings and have some new features. However this seems far too much to pay for a relatively restricted product (with a maximum of 20% in any one ETF). Hopefully other providers will stay closer to the $180 p.a. mark but let me know if your provider is following AustralianSuper's lead.
SunSuper (who I have my superannuation with) are increasing their administration fee by 0.04% p.a. (gross of tax) to 0.1% p.a. However I don't think this will end up being bad news. They've recently entered into an agreement with Vanguard to provide them with passive investments. We should see some impact of this around mid-June with their updated investment guide but I expect this will mean lower investment management fees over time. A first indication is a change in name for their international shares funds from "Enhanced Index" to "Index". I'll keep you posted as details emerge but expect we'll finally have an inexpensive way to invest in the low-cost Vanguard Australia wholesale funds in our super.
Finally, if you are considering switching providers, a reminder to check insurance costs and ensure you are covered before closing your old super account (the conditions of insurance approval vary between super funds so be sure to check). If you use the Life and TPD insurance in Super a number of funds have had to pass on increasing insurance costs recently. If you have a low balance this can make a bigger difference than small changes in investment or administration costs. It is still often cheaper than insurance outside super so make sure you do the comparison before you switch.
Links:
AustralianSuper Member Direct Guide
SunSuper enters strategic alliance with Vanguard
