Vanguard Super has reduced its annual administration fees from 0.35 per cent p.a. to 0.33 per cent p.a. with the administration fee cap lowered from $850,000 to $300,000.
These changes mean that, for most Vanguard Super investment options, the yearly fee (the sum of administration, investment and transaction fees and costs) reduces to 0.56 per cent p.a., while for the portion of a member’s balance above $300,000, the yearly fee reduces to 0.28 per cent p.a.
The fund said this change will lead to Vanguard Super’s default Lifecycle product having more than 30 per cent lower cost than the industry average.
Vanguard Super’s fees are presented on a yearly fee basis which incorporates the administration and investment fees and costs, and transaction costs.