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Rice Warner has developed a range of new calculators for Vanguard Investments which allow investors to compare fees between superannuation funds as well as managed funds. The superannuation fund fee calculator projects investors’ superannuation balance over a future period, and allows users to compare fees for up to two products. The calculator can be used to compare the fees of Vanguard’s Personal Superannuation Plan against other industry, retail or corporate super funds, and also allows users to compare super funds that are not offered by Vanguard. A second superannuation calculator projects both the superannuation balance to retirement and the income post retirement, including Age Pension payments.

For older users it calculates the affect on retirement income when adopting a transition to retirement strategy (TTR). A third calculator allows investors to compare the impact of managed fund fees on their future balance, producing a projected investment balance and allowing investors to adjust for a longer investment time horizon. Andrew McRae, senior analyst at Rice Warner, said all figures are discounted back to today’s dollars, with inflation set at 3 per cent. McRae said super funds are starting to demand technology that gives members a better idea of not only their likely balance at retirement but the impact that will have on their lifestyle in retirement.

 

“Eighteen months ago the super funds wanted a calculator that told members their projected super balance at retirement and how long the super will last,” he says. “Now, they want to know: what does that mean?” Colin Bold, senior consultant at Rice Warner, said the current environment had put a spotlight on the fees being charged by fund managers. “A lot of fund managers want to be more transparent,” he says. “It’s obviously in Vanguard’s interest because they’re low cost.

 

They’re making it more transparent for consumers to understand what fees they’re paying and compare [those fees].” AXA recently commissioned Rice Warner to develop a range of calculators for AXA Financial Planning, Charter and Genesys to support advisers during the advice process. The actuarial firm has developed calculators for Vision Super, Auscoal, Oamps Super, Local Government Superannuation, Local Super SA, Asset Super, and IFSA. In a treatise on appropriate asset valuations for super funds published last month, Rice Warner said any fund performance comparisons over less than three years were misleading and called for greater disclosure on unlisted valuation methods.

Rice Warner has developed
a range of new calculators for
Vanguard Investments which
allow investors to compare fees
between superannuation funds
as well as managed funds.
The superannuation fund
fee calculator projects investors’
superannuation balance over a
future period, and allows users
to compare fees for up to two
products.
The calculator can be
used to compare the fees of
Vanguard’s Personal Superannuation
Plan against other industry,
retail or corporate super
funds, and also allows users to
compare super funds that are
not offered by Vanguard.
A second superannuation
calculator projects both
the superannuation balance
to retirement and the income
post retirement, including Age
Pension payments. For older
users it calculates the affect
on retirement income when
adopting a transition to retirement
strategy (TTR).
A third calculator allows
investors to compare the impact
of managed fund fees on
their future balance, producing
a projected investment balance
and allowing investors to adjust
for a longer investment time
horizon.
Andrew McRae, senior
analyst at Rice Warner, said all
figures are discounted back to
today’s dollars, with inflation
set at 3 per cent.
McRae said super funds
are starting to demand technology
that gives members a better
idea of not only their likely
balance at retirement but the
impact that will have on their
lifestyle in retirement.
“Eighteen months ago the
super funds wanted a calculator
that told members their
projected super balance at
retirement and how long the
super will last,” he says.
“Now, they want to know:
what does that mean?”
Colin Bold, senior consultant
at Rice Warner, said the
current environment had put
a spotlight on the fees being
charged by fund managers.
“A lot of fund managers
want to be more transparent,”
he says. “It’s obviously in
Vanguard’s interest because
they’re low cost. They’re making
it more transparent for
consumers to understand what
fees they’re paying and compare
[those fees].”
AXA recently commissioned
Rice Warner to develop
a range of calculators for AXA
Financial Planning, Charter
and Genesys to support advisers
during the advice process.
The actuarial firm has developed
calculators for Vision
Super, Auscoal, Oamps Super,
Local Government Superannuation,
Local Super SA, Asset
Super, and IFSA. In a treatise
on appropriate asset valuations
for super funds published last
month, Rice Warner said any
fund performance comparisons
over less than three years
were misleading and called for
greater disclosure on unlisted
valuation methods.
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