Kinetic Super and Equip have both announced fee reductions as an early Christmas present to their members.
At Equip, a combination of the end of a 0.08 per cent levy to build fund reserves and investment cost efficiencies of 0.07 bps led to a MySuper member with a $50,000 balance seeing their annual fees drop from $543 to $463 – a 15 per cent cut.
While Kinetic has announced a move to cut its weekly administration fee from $1.70 per week to the new fee of $1.55 per week, an 8.8 per cent cut, after a unanimous decision by the board to give back something to members.
Elizabeth Thomas, acting chief executive of Kinetic, claimed the new annual administration fee of $80.60 per year was among the lowest of any Australian super fund.
Thomas emphasised the profit-for-members ethos of Kinetic as driving the logic of this price cut. “Kinetic Super is a fund run solely for the benefit of our members … we strive to deliver stronger retirement outcomes for our members, and reducing administration fees is one way to do this,” she said.
A similar statement was issued by Danielle Press chief executive of Equip.
“We have always been about delivering the best possible value for members and we will continue to keep downward pressure on fees while not compromising the quality of products and services we provide to members and employers,” she said.
She emphasised that the fund was still improving its offer to members while decreasing fees, citing the introduction of an automated investment service in the first half of 2016 and expanding its financial planning business as examples of this.