New fee disclosure requirements
03 October 2017
Under new federal government regulations, all super funds in Australia, including Local Government Super (LGS), are required to disclose the details of all costs associated with the investments they make on behalf of their members.
Our disclosure on fees and costs incurred by LGS and our investment managers (i.e. stamp duty, legal fees and brokerage) contain further details to meet these new regulations. This is why the fees and costs may appear higher even though they have always been paid previously.
How will these changes impact you?
Disclosing further details on these fees and costs is not an increase of the actual fees you pay on your investment with LGS.
Active vs Passive investments
Some funds who advertise lower fees use a passive investment strategy; they invest in a pool of shares without regularly researching and monitoring each company’s financial credentials.
LGS takes an active approach; we regularly research and monitor the investments we make.
We do this because, even though we pay fees on your behalf to investment managers, we expect that the return over time your investment earns–after paying these fees and costs–will be higher.
The amount of fees you pay can affect your long-term returns. LGS remains committed to keeping fees and costs as competitive as possible. However, this is only part of the picture. We believe the best retirement outcomes involve pursuing the greatest net performance.
If you have any questions, please contact Member Services on 1300 LGSUPER (1300 574 873) between 8.30am and 5.00pm, Monday to Friday.