Industry fund Equipsuper has made cuts to its administration fees in what it says is the “first sign of merger benefits” with Rio Tinto Staff Super.
Equipsuper has dropped its flat weekly administration fees from $1.50 to $1.25 and has reduced its asset-based administration fees from 0.2 per cent to 0.15 per cent per annum.
InvestorDaily reported on Equipsuper’s merger with Rio Tinto Staff Superannuation Fund in June, a move that doubled funds under management to $14 billion.
Equip chief executive Nick Vamvakas said the fee reductions aim to deliver benefits for members, and forecasted more cuts in the future.
“While we are extremely pleased to be able to announce these reductions, we expect to deliver even more savings for members by the end of this financial year as we further consolidate products, investments and administration operations,” he said.
Members will be saving $150 in asset-based administration fees per year, with the maximum amount payable being $750 rather than $900.
Meanwhile, pensioners’ asset-based administration fees have halved, dropping to $750 per year from $1,575.
The asset-based fee for pensioners has also been reduced from 0.35 per cent to 0.15 per cent per annum.
However, a new flat weekly fee has been introduced, at $2.50 per week.
The investment fees of Equipsuper’s default option MySuper rose to 0.64 per cent per annum, up from 0.57 per cent at the previous disclosure.
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