BT Financial Group announced on Monday it is halving its dollar-based administration fee from $108 p.a. to $56 p.a. for over 470,000 members who will see an automatic reduction from 1 February 2022.
The decrease, offered to MySuper and Choice members, is expected to result in an annual fee cut of $20 million.
BT explained that the fee reduction follows the migration of 430,000 members to the new BT Super product and an internal simplification program, which has made the group’s super business more efficient.
“It is pleasing to be able to pass on fee reductions to members in a year where they have experienced continuing strong returns,” said BT Financial Group CEO Matt Rady.
Mr Rady also flagged BT’s recently strong returns.
“Our three and five year returns continue to improve with a majority of members experiencing more than 11 per cent over three years and more than 9 per cent over five years,” Mr Rady added.
BT Super was one of 13 funds that failed APRA’s inaugural Your Future, Your Super performance test this year, due to underperformance and high fees.
Earlier this month it was revealed that Westpac would commence the sale of its platform BT Panorama in February. At the time, the AFR reported that AMP and Colonial First State could be interested in the platform, which boasts $105 billion in funds under management and 6,000 clients.
But BT is also looking to dispose of its superannuation fund business, with the process said to be underway. Interested buyers are believed to include AustralianSuper and Vanguard.
Maja's career in journalism spans well over a decade across finance, business and politics. Now an experienced editor and reporter across all elements of the financial services sector, prior to joining Momentum Media, Maja reported for several established news outlets in Southeast Europe, scrutinising key processes in post-conflict societies.