Common Fund FAQ - Fees

Frequently Asked Questions about Other Fees

Your returns are affected by fees and charges, some taken directly out of your account and other fees are deducted from the earnings of a fund before they are credited to your account. The following questions have been provided to help you understand other fees.

Question 1: Are these other fees new?
Question 2: What are some examples?
Question 3: How are other fees calculated?
Question 4: Why am I being told about this now?
Question 5: Where can I find out about how much they are?
Question 6: How will my statements change?
Question 7: I still have questions, where can I get further information?

Question 1: Are these other fees new?

Answer: These other fees are not new, you would have read about some of them at the time of buying the product where they were usually given as a percentage. What has changed is the way we will be displaying these other fees on statements. Other fees will be shown as dollar amounts so you can clearly see what charges may be affecting your investments.

Question 2: What are some examples?

Answer: Other fees include, for example, investment management fees, management fees, custody fees and general fund expenses.

Question 3: How are other fees calculated?

Answer: Other fees are not easy to calculate. As a whole they vary depending on the account balance and the investment options you select and a number of other factors. It is important to recognise that they are only estimates.

Question 4: Why am I being told about this now?

Answer: Other fee information has previously been provided in product brochures as a percentage. Until now there has not been a legal requirement to disclose other fees as a dollar amount. The new requirement is being introduced over the next 2 years for a range of financial products.

Question 5: Where can I find out about how much they are?

Answer: Other fees as dollar amounts will be detailed for superannuation customers and life insurance investment customers in annual and exit statements from 1 July 2006. Investment products will detail other fees as dollar amounts in annual and exit statements from 1 July 2007.

Question 6: How will my statements change?

Answer: Annual statements or exit statements (statements sent you to when you leave a product) will contain a new section which includes other fees as a dollar amount and a section which totals other fees and any fees incurred directly from your account.

Question 7: I still have questions, where can I get further information?

Answer: If you still have questions contact your Adviser, call Summit on 1300 654 294 or call the Financial Administration Service on 1300 654 132 or write to us at the appropriate address:

Summit PO Box 45 Collins Street West Melbourne VIC 8007

FAS PO Box 45 Collins Street West Melbourne VIC 8007

Contact a Financial Adviser

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