In a year in which fees have been under the spotlight, Vision Super has announced that it will lower its administration and investment fees following saving $150 million over the last 4.5 years by cutting costs.
The change would see the asset fee component of administration fees cut from 20 bps to 18 bps, and investment fees decreased on most options. The default balanced growth option would go from 88 bps to 68 bps, 19 bps below the industry average.
Announcing the cut, Vision Super chief executive, Stephen Rowe, said that the fund had put a lot of effort into lowering fees over the last few years.
“We’ve had a relentless organisational focus on cost downs, including renegotiating contracts, replacing our ageing bespoke administration system, and reducing costs on the investment side including by reducing the number of investment managers from 68 in January 2013 to 53 today, and moving some of our investments to passive portfolios,” he said.