Choosing the Good Life

What are direct fees?

The summary section of your statement shows the total amount of direct fees deducted for the reporting period. These fees are deducted directly from your investment.

Direct fees are individually itemised in the detailed transactions section of your statement. Typically, these fees relate to activities such as processing contributions and account maintenance.

What are indirect costs?

Indirect costs are not charged directly to your individual account – they are shared by all members of each individual investment fund that you have chosen to invest in. These typically include the cost of policy administration, investment expenses, trustee fees, audit fees, accounting fees, and government compliance and reporting costs.

Indirect costs are deducted from the investment fund before the calculation of unit prices and/or crediting rates.

These costs will appear on your statement as an Indirect Cost Ratio and, depending on the product, may also be presented as Other Management Costs.


Indirect Cost Ratio (ICR)Expressed as a percentage (%), this is an estimate of the indirect costs of an individual investment fund.
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Other Management Costs (OMC)Expressed as a dollar ($) amount, this is the approximate individual member portion of indirect costs.

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