Industry fund reduces member fees
Some Vision Super fund members could see their fees reduced by $320 per year after the industry fund renegotiated the terms of its outsourced provider arrangements.
Vision Super has lowered its management expense ratio (MER) by 42 per cent and its investment costs by 25 per cent.
As a result, a Vision Super member with an account balance of $100,000 would see their fees reduced by $320 a year, according to a statement by the fund.
"This equates to a big savings over a 20-year period. A member invested in the fund's Balanced Growth option would be $15,000 better off at retirement," said the statement.
Vision Super chief executive Stephen Rowe said that lowering the MER has been a priority for the fund in recent years.
"We've taken a deliberate and methodical approach to reducing costs," Mr Rowe said.
"One of the first things we did was to benchmark what we were paying against the market. We reviewed our financial statements and outsourced provider arrangements, and compared them to other funds.
"Then, we set about renegotiating with our major providers," he said.
Vision Super has reduced its operational MERs from 47 basis points in 2012-13 to 27 basis points in 2014-15, and its investment MERs from 88 basis points to 66 in the same period.
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