Border Express Benefits Plan - Fees and Charges

These are the fees:-
Entry Fees : On contributions and rollovers - Nil

Exit Fees : Nil if continuing in a personal account or $60 partial withdrawals and $75 for account closing

Member Fee : $4.50 per month

Account Management Fee : Is a percentage figure applied across the total balance of all accounts associated with the Border Express Benefits Plan.  As the total balance grows the fees reduce.  The current estimated management fee is 0.64% pa.  This can fall to as low as 0.6%.

In combination, the above fees are not expected to be greater than 1% of your account balance but this depends on your account balance.

Investments Options : Each of the 40 investment options available in the plan has their own management costs known as the Management Expense Ratio or MER. These costs are calculated and deducted before the investment returns are calculated. This means you will not see these fees. The fees range from 0.3% to 1.3% with an estimated average fee of 0.7%.

The common investment options for the plan have the following estimated MER's:-

United Capital Balanced (curent default option) - 0.67% plus a possible 0.20% Performance fee
United Capital Growth Fund - 0.75% plus a possible 0.26% Performance fee
United Capital High Growth Fund - 1.05% plus a possible 0.41% Performance fee

Investment Switching Fees : Nil fees are levied by Spectrum for switching investment options up to 2 in a year. Thereafter $30 per investment option switch.
You should be aware that selling one investment in favour of another will trigger a buy-sell spread. This is a small percentage of the amount that you switch and is designed to recover the transaction costs of the fund manager. If they didn't levy the buy-sell spread the remaining investors would have to pick up the costs of you leaving the option. Buy-sell spreads range from 0% to 1% depending on the investment option.

What you get for your account management fees?

• Prepare all the accounts and statements for your plan.
• Calculate and remit all taxes relating to your superannuation account.
• Arrange free rollovers of your other superannuation accounts.
• Ring the Spectrum Master Fund helpline which gives you phone access to information on your super.
• Give you on-line access to your account information via their website.
• Send you half-yearly statements on your super and investment accounts.
• Educate and inform you about money management issues.

• Advise you on your investment options within the plan.
• Assess your retirement funding needs and arrange additional contributions.
• Help you with non-superannuation investments and savings plans.
• Assess your insurance needs and modify the insurance cover.
• Set up accounts for your spouse or family under the same discounted terms.

Member Account Information