Superannuation fund Future Super will ring in the new year by reducing fees on all its investment options.
From January 2021, Future Super will cut the admin fee on its Future Super Balanced Impact and Future Super Renewables Plus to 0.554% with the flat fee remaining the same. The investment fee for Balanced Impact and Renewables Plus Growth was 0.97% per annum for each option. This has now been reduced to 0.804% per annum for each option.
The fee reduction comes after the fund saw huge growth this year: Future Super had an almost 200% increase in the number of members joining in 2020, compared to 2019.
"2020 has been a year where many people have taken a step back and realised the power that their superannuation has today," said Kirstin Hunter, Future Super CEO. "Rather than let their retirement savings prop up failing industries, more and more Australians are taking matters into their own hands and investing their superannuation to build a future they want to live in."
As more Australians joined the ethical investing movement, Future Super's funds under management has grown allowing it to renegotiate its service agreements and reduce the amount paid into the fund's expense reserve, the fund said. Those savings are passed back to members.
"We grow retirement savings to shape a future free from climate change and inequality," Hunter said. "Our primary objective is to ensure that our members have a comfortable retirement, and reducing the fees associated will help balances grow.
"There's a long-held view that ethical funds are more expensive, however the fee reductions we're announcing today bring our Balanced Index fees to well-below the industry median. These lower barriers mean that more Australians will be investing in a future that they want to live in."
Earlier this month, Future super also announced changes in staff. Future Super's chief investment officer Dan East stepped down and will continue to hold positions on the funds' risk committee and investment committee.
East was the chief executive and chief investment officer of Grosvenor Pirie Management, which was acquired by Future Super Group in 2016.
The fund has also appointed former Macquarie Funds Management chief risk officer Virginia Malley as chair of the risk committee.
As well as her experience at Macquarie, Malley has environmentally friendly credentials that are relevant to Future Super. She is currently on the board of the Clean Energy Regulator and the NSW Biodiversity Trust.
Future Super said that Malley has demonstrated a strong passion for renewable energy and ethical investment.
Malley is also chair of the Pinnacle compliance committee and director and chair of the audit and risk committee for Perpetual Super and Perpetual Equity Investment Company.
Future Super has also bolstered its investment committee, appointing both Karen McLeod and Geraldine Barlow-Bolt.
McLeod is a financial adviser specialising in ethical investments and is on the board of the Responsible Investment Association of Australasia (RIAA).