House of Assembly Fifty-Fourth Parliament, First Session (54-1) 54 1 Parliament of South Australia House of Assembly published Estimates Replies Funds SA Funds SA The Hon. S.C. MULLIGHAN House of Assembly Lee Funds SA In reply to the Hon. S.C. MULLIGHAN (Lee) (24 July 2019). (Estimates Committee B) The Hon. R.I. LUCAS House of Assembly Treasurer The Hon. R.I. LUCAS (Treasurer): I have been advised 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 is directly or indirectly invested Transaction costs Corporate expenses Custody fees For the year ended 30 June 2019, the total ICR incurred by Funds SA was 0.88 per cent, or $8,800 per $1 million. For the year ended 30 June 2019, total fund manager fees were 0.62 per cent, or $202.9 million. Across the Funds SA investment options, the range of fees paid directly by Funds SA to investment managers for the year ended 30 June 2019 were as follows: Cash, 0.05 per cent Capital Defensive, 0.30 per cent Conservative, 0.35 per cent Moderate, 0.50 per cent Balanced, 0.60 per cent Growth, 0.66 per cent High growth, 0.67 per cent Defined benefit strategy, 0.79 per cent All returns earned by Funds SA investors are reported after the payment of fees. A summary of funds under management (by manager as at 30 June 2019) is attached. Fund Manager Total Funds SA FUM Macquarie $2,397,102,199 Vinva $1,813,071,284 AMP $1,571,217,725 Investors Mutual $1,453,621,655 MFS $1,307,358,917 Greencape Capital $1,286,115,279 LSV $1,232,833,427 Northcape Capital $1,195,865,522 Harding Loevner $1,168,802,106 Dexus $1,153,607,211 Mondrian $1,126,366,860 Invesco $1,104,073,706 AQR $1,000,304,453 BlackRock $906,019,711 GMO $837,219,355 Bridgewater $804,165,261 Colonial First State $801,547,013 Ardea $795,008,202 Utilities Trust of Australia $742,264,767 Vanguard $683,285,025 Colchester $676,882,992 Columbia $666,998,539 Wellington $604,082,853 Ethical Partners $567,249,411 Investa $524,996,591 Brandywine $506,315,339 Touchstone $496,029,534 GPT $405,352,845 Ares $399,271,475 Brandywine $396,230,169 Internal (cash accounts) $394,143,973 LGT $393,681,226 Oak Hill $388,733,950 Genesis $366,410,221 Funds SA (internally managed assets) $309,282,099 Global Infrastructure Management, LLC $258,533,977 Lord Abbett $256,442,375 Bain Capital Partners LLC $238,610,540 Putnam $215,034,375 Adams Street Partners LLC $209,219,802 Ocean Avenue Capital Partners LP $207,011,305 Palisade $194,080,887 Pantheon Ventures Ltd $190,021,279 EQT Funds Management Ltd $188,880,259 Cerberus Capital Management, LP $181,759,318 Warburg Pincus LLC $134,657,109 Siguler Guff & Company LLC $109,450,816 Lend Lease $107,340,460 Permira Debt Managers Ltd $104,686,814 EIG Alternative Investments LLC $82,755,691 PLEASE NOTE: the fund managers detailed above cover the top 50 by Funds SA funds under management. Funds SA utilises managers beyond this cohort however, the funds under management of those outside the top 50 is small by comparison.