Index fund comparisons

Table: streetTRACKS S&P / ASX 200 fund

Source: www.selectingsuper.com.au, December 2005.

New low-cost entrants such as max Super and Virgin Superannuation also use indexing as their core approach (see Table 3 below).

Table notes

Information correct as at 31 December 2005.

NA Not applicable/not available. For example, past returns aren’t available for new funds.

(a) Where the annual management fee/MER is applied on a tiered scale or progressively reduced for large investments, the table shows the first tier.

(b) There are two options — the entry fee option has a lower MER (1.44% pa, less tiered discounts) and there’s no exit fee. The nil entry fee option has a higher MER (1.99% pa, less tiered discounts), but the exit fee is up to 3% of investments withdrawn within the first three years.

(c) Ongoing fee rebates apply for all account balances: first $100,000 (0.15%), next $100,000 (0.35%), next $100,000 (0.55%); and amounts over $300,000 (0.75%).

(d) First performance figure is for entry fee option; the second figure is for the nil entry fee option.

(e) Up to 4.4% of each investment made with the entry fee option, negotiated with your financial adviser/planner. The ‘deferred entry fee’ option charges up to 1.45% of each investment made for up to 4 years.

(f) Nil with nil entry fee option; up to 5.28% with deferred entry fee option.

(g) Minimum starting balance is $2500 if you agree to contribute $100 per month through a savings plan; otherwise the minimum starting balance is $5000.

(h) Ongoing fee rebates apply for account balances over $100,000: first $100,000 (no rebate), next $100,000 (0.2%), next $100,000 (0.4%), amounts over $300,000 (0.6%).

(j) MER is 0.17% lower for total account value between $200,000 and $400,000; 0.32% lower for total account values over $400,000.

(k) Entry fee is between nil and 5%, negotiable with your financial adviser/planner.

(m) Performance figures assume maximum trail commissions/fees are paid to your financial planner. Trail commissions (0.66% pa) can be rebated, increasing investment returns.

(n) Different fees, such as administration and account-keeping fees, apply with the Australian share index fund offered by the Vanguard Personal Superannuation Plan.

(p) 0.75% for first $50,000, 0.5% for next $50,000, 0.35% for balances over $100,000.

Source: Morningstar and funds, January 2006, except BankWest (source: CHOICE Money & Rights research based on Top 200 Product Disclosure Statement available in January 2006).