Funds SA

In reply to the Hon. S.C. MULLIGHAN (Lee) (21 September 2018). (Estimates Committee B)

The Hon. R.I. LUCAS (Treasurer): I have been advised of the following:

Funds SA assesses total investment related fees/costs incurred by calculating an Indirect Cost Ratio (ICR). The ICR represents the total investment costs/expenses as a percentage of funds under management and is a standard expense measurement tool used in the funds management and superannuation industry. Types of fees/costs included in Funds SA's ICR include:

Fund manager fees, including performance fees

Fees/costs incurred by underlying funds in which Funds SA are directly or indirectly invested

Transaction costs

Corporate expenses

Custody fees

For the year ended June 2018, the total ICR incurred by Funds SA was 1.03%, or $10,300 per $1 million. For the year ended 30 June 2018, total Fund Manager Fees were $220.6 million. All returns earned by Funds SA investors are reported after the payment of fees and, where appropriate, Super SA administration fees.