Index fund comparisons

We compare Australian share index funds and profile a low-cost Exchange Traded Fund.
 
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  • Updated:6 Mar 2006
 

03.Comparison table

We asked research house Morningstar to provide data for Australian share index funds on its database, which we used to compile the table below.

Investment performance warning

Past performance is not a guide to future performance. Australian shares have had an outstanding run over the last three years, but whether share values continue to rise in the future is highly uncertain.

 

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Australian share index funds: features
Fund name Available as ‘stand alone’ managed fund Only available through wrap account/master trust Benchmark index Inception Minimum investment ($) Minimum withdrawal ($) Income distribution Regular savings plan available
ANZ OA Investment Portfolio Vanguard Australian Shares Index (b)
www.anz.com
• ANZ OneAnswer Investment Portfolio S&P/ASX 300 Accumulation Jun 2003 5000 for platform/ 1000 per fund 1000 Quarterly
AXA Generations — Barclays Australian Equity Index
www.axa.com.au
• AXA Generations S&P/ASX 300 Accumulation Aug 2004 1000 500 Annually
BankWest Top 200
www.top200shares.com.au
S&P/ASX 200 Accumulation Oct 2005 2500/5000 (g) 500 Quarterly
BT State Street Australian Share Index
www.btonline.com.au
• BT Wrap Essentials S&P/ASX 200 Accumulation Dec 2004 1000 1000 6 monthly
Colonial First State — CFS Indexed Australian Share
www.colonialfirststate.com.au
• FirstChoice Investments S&P/ASX 200 Accumulation May 2002 5000 500 Quarterly
ING OA Investment Portfolio — Vanguard Australian Shares Index (b)
www.ing.com.au
• ING OneAnswer Investment Portfolio S&P/ASX 300 Accumulation Sept 2005 5000 (platform)/ 1000 (per fund) 1000 Quarterly
MLC MasterKey — Vanguard Share Index
www.mlc.com.au
• MLC MasterKey master trust S&P/ASX 200 Accumulation Feb 1988 5000 500 Quarterly
Skandia Global Investment Solutions — Barclays Australian Equity Index Fund
www.australianskandia.com.au
• Skandia One Investment Solutions or Global Investment Solutions S&P/ASX 300 Accumulation Jul 2002 3000 1000 Quarterly
Skandia One Investment Solutions — Barclays Australian Equity Index Fund
www.australianskandia.com.au
• Skandia One Investment Solutions or Global Investment Solutions S&P/ASX 300 Accumulation Feb 2003 10,000 1000 Quarterly
Vanguard Index Australian Shares Fund (n)
www.vanguard.com.au
S&P/ASX 300 Accumulation Oct 1998 5000 1000 6 monthly


Investment performance warning

Past performance is not a guide to future performance. Australian shares have had an outstanding run over the last three years, but whether share values continue to rise in the future is highly uncertain.

Australian share index funds: fees and performance
Fees
Performance as at 31 December 2005 (%)
Fund name Management
fee/ MER
(% pa) (a)
Entry (%) Exit (%) Buy/sell
differential
(%)
3 months 6 months 1 year 3 years (pa) 5 years (pa) 7 years (pa) Phone
ANZ OA Investment Portfolio Vanguard Australian Shares Index (b)
www.anz.com
1.44 (b) (c) Up to 4 (b) Nil (b) 0.20/0.10 1.87/1.74 (d) 12.75/12.46 (d) 19.55/18.92 (d) NA NA NA 133 863
AXA Generations — Barclays Australian Equity Index
www.axa.com.au
1.20 Up to 4.40 (e) Nil (f) 0.40 2.75 13.27 21.11 NA NA NA 131 737
BankWest Top 200
www.top200shares.com.au
0.98 Nil Nil 0.20 NA NA NA NA NA NA 1300 867 200
BT State Street Australian Share Index
www.btonline.com.au
1.40 Nil Nil 0.20 2.70 13.07 20.43 NA NA NA 132 135
Colonial First State — CFS Indexed Australian Share
www.colonialfirststate.com.au
1.60 4 Nil 0.40 3.26 13.17 21.36 20.08 NA NA 1300 360 645
ING OA Investment Portfolio — Vanguard Australian Shares Index(b)
www.ing.com.au
1.44 (b) (h) Up to 4 (b) Nil (b) 0.20/0.10 NA NA NA NA NA NA 133 665
MLC MasterKey — Vanguard Share Index
www.mlc.com.au
1.28 (j) Up to 5 (k) Nil Nil 3.23 (m) 13.08 (m) 20.97 (m) 19.87 (m) 11.25 (m) 10.74 (m) 132 652
Skandia Global Investment Solutions — Barclays Australian Equity Index Fund
www.australianskandia.com.au
1.11 4 Nil 0.20 3.25 13.45 21.24 20.31 NA NA 1300 300 088
Skandia One Investment Solutions — Barclays Australian Equity Index Fund
www.australianskandia.com.au
1.81 4 Nil 0.20 3.07 13.01 20.39 NA NA NA 1300 300 088
Vanguard Index Australian Shares Fund (n)
www.vanguard.com.au
0.75 (p) Nil Nil 0.30 3.36 13.61 21.86 20.90 12.02 11.48 1300 655 101
Benchmark S&P/ASX 200 Australian Shares Accumulation index 3.56 13.90 22.83 21.69 12.65 12.04
Benchmark S&P/ASX 300 Australian Shares Accumulation index 3.54 13.94 22.45 21.66 12.69 12.01
Table: streetTRACKS S&P / ASX 200 fund

Returns as at 31 December 2005 (%) S&P/ASX 200 Index (%)
3 months 3.47 3.56
6 months 13.63 13.9
1 year 22.27 22.83
3 years (pa) 21.26 21.69
Since fund inception
(pa since 31 August 2001)
13.24 13.63
Corporate master trust
Fund Name Market Segment
MLC MasterKey Superannuation Personal master trust
Mercer Super Trust (Corporate Super Division) Corporate master trust
Sunsuper Industry fund
Colonial First State — FirstChoice Personal Super Personal master trust
Plum Superannuation Fund Employer Division Corporate master trust
BT SuperWrap Personal Super Plan (BT Badged) Personal master trust
ASGARD Superannuation Account Personal master trust
MLC MasterKey Business Super Corporate master trust
HOST-PLUS Industry fund
Navigator Personal Retirement Plan — Superannuation Service Personal master trust
Macquarie Super Manager Personal master trust
Integra Retirement Plan — Superannuation Personal master trust
SUMMIT Master Trust Personal Super Plan Personal master trust
ING Corporate Super
MasterKey Custom Superannuation Fund Personal master trust
ANZ Super Advantage — Personal Personal master trust
ASGARD Employee Superannuation Account Corporate master trust
PortfolioCare — Super Service Corporate master trust
Colonial First State — FirstChoice Employer Super Corporate master trust
Perpetual WealthFocus Super Plan Personal master trust

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).

New super index funds
Fund name Manager Management
/ MER
(% pa)
Entry (%) Exit (%) Switching (%) Buy/sell differential (%) Phone
max Super (a) Barclays Global Investors Australia 1 Nil Nil Nil Max 0.25% 1300 883 629
Virgin Superannuation (b) Macquarie Funds Management 1 Nil Nil Nil Max 0.25% 1300 855 040
Effect of fees on index fund returns
streetTracks S&P /
ASX 200 Fund (a)
Vanguard Index
Australian shares (b)
BankWest Top 200
(c)
Fund with higher entry/
management fees (d)
Entry fee ($) NA Nil Nil 400
Stock broker fee ($) 30 NA NA NA
Ongoing management fee (MER) ($) 173 451 586 797
Total entry and ongoing fees ($) 203 451 586 1197
Return after entry and management fees ($) 14,449 14,170 14,013 13,180
Exit /stockbroker selling fee ($) 30 Nil Nil Nil
Return after exit fee ($) 14,419 14,170 14,013 13,180

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).