Skip to main content
#
A Clear Direction
rss feedour twitterour facebook page linkdin
home
Financial Advisor Brisbane - AdviserScott Keefer - A Clear DirectionBuilding Investment PortfoliosPortfolio Management ServiceUpdated ContentContact Us - Brisbane Financial Planning
A Clear Direction Financial Planning logo

 Financial Happenings Blog 
Sunday, April 01 2007

There was an interesting article in today's Courier Mail about HESTA, an industry superannuation fund.  There has been a lot of marketing by industry superannuation funds lately - Sunsuper, HESTA, the construction industry super fund and so on.  As a supporter of industry superannuation funds, this is a bit of a concern.  The last thing that we want to be seeing is industry superannuation funds behaving like retail superannuation funds - and starting to charge fees accordingly.

HESTA use the headline rate of fees of '$1.25 a week'.  They fail to mention that as well as this there is a investment management fee, plus they have started to charge a 'performance bonus' fee.  Not very industry superannuation fund like.

It is interesting to see that HESTA say that most of their clients have a balance of less than $20,000.  This is an interesting part of the equation.  This, to my mind, is the folks for who an industry superannuation fund is ideal for - people starting to accumulate some superannuation wealth.  They don't have to worry about high fees eroding their superannuation returns - as often happens with retail superannuation products.

Our benchmark for total superannuation fees is 1.5%.  Industry superannuation funds tend to be cheaper than this, retail funds less expensive.  Costs do matter in investing, and industry superannuation funds still have a cost advantage.  Let's hope that they don't spend so much money advertising this advantage that they have to raise their fees!

Cheers

Scott

Posted by: Scott Francis AT 09:24 pm   |  Permalink   |  Email
 
Scott Francis' articles in the Eureka Report 
Request for Information 
If you have questions, or would like more information, please go to our Contact page and leave your name and contact information.

Plan Well, Invest Well, Live Well! Financial advice providing a clear direction

A Clear Direction Financial Planning and Portfolio Management ABN 85 147 572 870

Level 19
10 Eagle Street
Brisbane QLD Australia
Ph: (07) 3303 0269
Email: scottk@acleardirection.com.au

Authorised Representative (398444) and Credit Representative (403292) of FYG Planners Pty Ltd AFSL/ACL 224 543.

ASIC - Financial Advisers Register

All content of this website is copyright © A Clear Direction Financial Planning Pty Ltd, 2017

FYG Planners Pty Ltd & A Clear Direction Financial Planning Privacy Policy