Retirement
Sunsuper cites strong returns amid ICR raise
Sunsuper has recorded an increase in performance-related costs following rising returns over the past 12 months.
Sunsuper cites strong returns amid ICR raise
Sunsuper has recorded an increase in performance-related costs following rising returns over the past 12 months.
Sunsuper has announced an increase in its indirect cost ratio (ICR) of $95 after better than expected results from FY 2020-21.
“As a profit-for-members super fund committed to acting in the best financial interests of members, our selection of world-class investment managers has resulted in outperformance over the 2020-21 financial year to date,” the fund said.
Sunsuper said their Balanced option outperformed the industry average of 19.3 per cent for the year to 31 March 2021 with a return of 21.3 per cent.
When the new ratio comes into effect on 1 July, it will nudge the fees involved with a Sunsuper fund from $200 to $295 for every $50,000 invested through the fund’s Balanced offering.
The fund assured that these fees are not directly deducted from individual member accounts but instead from the investment returns generated by the fund as a whole.
Alongside the announcement of the increase, Sunsuper pointed to the fact that they paid almost no performance-related costs within the ICR over the previous financial year and that their base investment fees have remained stable since July 2019.
The nudge upwards in fees comes ahead of a planned merger with QSuper. If the Sunsuper-QSuper merger goes ahead as planned in September 2021, the new entity will challenge Australian Super, which accounts for $200 billion in assets and over 2 million customers.
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