Australian Government regulations require the inclusion of the following consumer warning. The information in the box is standardised across all product issuers and does not provide any specific information on the fees and costs applicable to the superannuation product offered under the Product Disclosure Statement. You should refer to the information that follows the consumer warning for the specific fees and costs applicable to the superannuation product offered under the Product Disclosure Statement.

DID YOU KNOW?

Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30-year period (for example, reduce it from $100 000 to $80 000).

You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. You may be able to negotiate to pay lower contribution fees and management costs where applicable. Ask the fund or your financial adviser.

TO FIND OUT MORE

If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (www.fido.asic.gov.au) has a superannuation calculator to help you check out different fee options.

This section shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the Fund’s assets as a whole.
Taxes and insurance costs are set out in another part of this document.

You should read all the information about fees and costs because it is important to understand their impact on your investment.

This section is divided into three parts:

Fees and costs - a list of the main fees that can be payable on superannuation investments (Table 1)
Additional explanation of fees and costs - an additional explanation of management costs and other fees and costs (Tables 2 and 3)
Example of annual fees and costs for a balanced investment option - an example of annual fees and costs for the Balanced Strategy (Table 4).

Fees and costs

Table 1: Fees and costs*

TYPE OF FEE OR COST	AMOUNT	HOW AND WHEN PAID
Fees when your money moves in or out of the fund
Establishment fee The fee to open your investment.	Nil
Contribution fee¹The fee on each amount contributed to your investment - either by you or your employer.	4.1% for contributions to the Balanced, Large Companies Share, Equities and World strategies For example, if you invest $5000 into the Balanced Strategy the contribution fee (at 4.1/%) will be $205 0.5125% for contributions to the Income Strategy For example, if you invest $5000 into the Income Strategy the contribution fee will be $26	Charged against the member’s contribution. This fee is discounted for contributions in excess of $6000 made directly to us with the Balanced, Equities, Large Companies Share and World strategies. See Discounted fees and Negotiable fees in Table 2 below. This fee may also be negotiable down to 0.5125% if you retain a licensed financial adviser. See Adviser commissions and rebates in Table 2 below.
Withdrawal fee The fee on each amount you take out of your investment.	$51.25 for any one-off withdrawal. This fee does not apply to regular income stream payments. This fee may be indexed to inflation on 1 July each year.	Deducted from a member's account balance at time of withdrawal.
Termination fee The fee to close your investment.	Nil
Management costs
The fees and costs for managing your investment.	Member fee² $41 per annum	Member fees are deducted from member account balances in two equal instalments in December and June.
	Plus
	Administration and investment management fee³ Balanced, Large Companies Share, Equities and World strategies 1.9% per annum For example if you maintained a $50 000 investment in the Balanced Strategy for a year, your administration and investment management fee would be $948 for that year Income Strategy 1.13% per annum For example if you maintained a $50 000 investment in the Income Strategy for a year, your administration and investment management fee would be $564 for the year	Your investment is valued at least weekly and these fees are taken into account at that time through deduction from the Fund's assets.
	Plus
	Expense recoveries⁴ The trustee estimates that expense recoveries will be 0.1% per annum. For example, if you maintained a $50 000 investment in the Fund, expense recoveries by the trustee referable to your investment are estimated to be $50 for the year.	This is an estimate of the out-of-pocket expenses the trustee intends to recover from the Fund based on the quantum of those expenses for the year ended 30 June 2006. The amount will change from year to year. Your investment is valued at least weekly and these expenses are taken into account at that time.
	Plus
	Indirect expenses⁵ 0.36% per annum (Income Strategy) - for example $180 per annum for a $50 000 investment. 0.15% per annum (Balanced Strategy) for example $75 per annum for a $50 000 investment 0.16% per annum (Large Companies Share Strategy) - for example $80 per annum for a $50 000 investment 0.15% per annum (Equities Strategy) for example that is $75 per annum for a $50 000 investment The World Strategy has no history of expense recoveries; however, it is anticipated that expense recoveries will be similar to those for the Large Companies Share Strategy	These are estimates based on actual indirect expenses for the year ended 30 June 2006. The amounts will change from year to year. Your investment is valued at least weekly and these expenses are taken into account at that time.
Service fees⁶
Investment switching fee The fee for changing investment options.	3.1% when switching from the Income Strategy to another strategy, otherwise nil. For example, if you switched $5000 from the Income Stategy to the Balanced Strategy, the investment switching fee would be $154.	Charged to member's account at the time of the switch.

* Percentages expressed to one or two decimal places in the tables may have been rounded. For ease of reading, some monetary amounts are expressed to the nearest dollar.

Notes to Table 1

Contribution fees are not charged on super co-contributions made by the Australian Government. Contribution fees are not charged on amounts re-invested under contribution-splitting arrangements; such investments are treated in the same way as investment switches (see Investment switching fee).
This is a member account-keeping fee charged to each member.
This is the fee to cover the general administration of the Fund and for managing the Fund’s investments. We charge one fee for performing both these functions and it is not possible for us to separate them. See also Indirect expenses.
The expense recovery estimate is based on an assumption that the trustee will recover from the Fund amounts paid by the trustee for regulatory levies and charges, Fund auditing fees and Fund accounting fees.
Members bear the expenses of the underlying Australian Ethical trust because these expenses are incorporated in the valuation of the trust. The indirect cost estimates shown are based on these expenses. Note however that no further contribution fee or administration and investment management fee will be borne by the Fund when monies from a strategy are invested in an Australian Ethical investment trust.
Other service fees are described in Additional explanation of fees and costs below.

^ top

Additional explanation of fees and costs

Table 2: Important additional disclosure items

TYPE OF FEE OR COST	AMOUNT	HOW AND WHEN PAID
Trailing commission/adviser service fee: This is the fee charged by your adviser for advice about your investment(s) in the fund.	Up to 1.1% per annum of your account balance as negotiated between you and your adviser. On a $50 000 investment, at 1.1% per annum, this would amount to $550 for the year.	Deducted monthly from your account balance and paid to your adviser quarterly in arrears. See further What is paid to your adviser? in the text below Table 2.
Adviser commissions and rebates	Up to 3.5% (exclusive of GST) of your contributions to the Balanced, Large Companies Share, Equities and World strategies. This is not an additional fee, but is included in the contribution fee referred to in Table 1 above. See examples provided in the What is paid to your adviser? section below. Commissions and rebates do not apply to the Income Strategy.	If you have an adviser, they may rebate all or part of this fee for the Balanced, Large Companies Share, Equities and World Strategies. See further What is paid to your adviser? in the text below Table 2.
Transaction costs: These are taxes, duties and other costs such as brokerage and other fees related to buying and selling assets in the Fund. When you invest, switch or withdraw all or part of your investment, we may use what is called a buy sell spread to recover transaction costs from you so that the remaining investors in the Fund are not paying the costs of your transaction.	It has never been necessary to levy a buy sell spread and we cannot predict what the amount might be as it would be an estimate of the actual costs the Fund is bearing on transactions if required. The amount would typically be less than 1% of the value of the transaction or less than $1 in every $100.	This would be an additional cost were we ever to charge it. It would be paid in the unusual circumstance where a transaction resulted in costs to other members of the Fund.
Family law fees: We may charge reasonable fees for our costs when providing family law related services such as payment flagging, payment splitting and information applications.	Under normal circumstances, an administration fee of $110 will apply. However, the amount of fees payable will vary depending on the degree of involvement required by the trustee to administer the service. Applicants and members should also be aware that any legal or court costs incurred by the trustee in relation to a member account may also be payable.	A fee of $110 is payable upon initial request for family law related services and a cheque made out in accordance with the trustee’s instructions must be provided with the request. Payment procedures for ongoing matters will vary according to the services requested.
Member protected benefits: If your account balance falls below $1000, special fee provisions may apply which will limit the fees which can be charged to your account. Note these provisions will not apply to taxation or insurance charges and premiums.
Discounted fees: Large contributions Discounted fees apply to contributions made directly with us to the Balanced, Large Companies Share, Equities and World strategies. They do not apply to investments made through third parties such as advisers.	For single investments between $6000 and $25 999 a 3.1% contribution fee applies. For example, on a $6000 investment, the contribution fee would be $185. For single investments of $26 000 to $199 999 a 2.05% contribution fee applies. For single investments of $200 000 and over, a 0.5125% contribution fee applies. Rollovers (transfers from another fund) of $1000 and above: 3.1%. For example, on a rollover of $1000, the contribution fee would be $31.	Discounts apply at the time a contribution is made. Contributions via multiple cheques must be paid into the Fund on the same day for discounts to apply. Please contact us to discuss whether a discounted fee is available to you.
Discounted fees: Staff We provide contribution fee discounts to our staff or staff of related parties and may offer them to like-minded organisations.	0 to 0.5125% contribution fee applies.	Discounts apply at the time a contribution is made.
Negotiable fees: Other Discounted fees may be offered based on other criteria, for example, total value of holdings, total period of time a person has been a member or cost of servicing a member.	This would be determined by the trustee when deciding how and to who the discount would be offered.	Discounts apply at the time a contribution is made.
Incidental fees: Special fees for services are allowed by the trust deed.	Nil at present - we do not currently charge any special fees.
Taxes - please see What about taxation? in the Product Disclosure Statement for a description of tax implications for investments in the Fund.
Insurance charges and premiums: Please see the information in the text below the table and in the Insurance Options section of the Product Disclosure Statement for further information.
Issuer fee: This is the fee for the product issuer's services in overseeing the fund's operations and/or for providing access to the fund's investment options. ^ top	Nil

GST

Goods and services tax (GST) is not payable on the issue, withdrawal or transfer of units in the Fund, as these are input-taxed financial supplies for GST purposes.

When fees and costs are shown in this section (unless otherwise stated) the net cost of GST is included. If the GST rate or arrangements change, the total amount you pay may change even though fees due to us are not increased.

Changes to fees

All fees are subject to change. Reasons might include changing economic conditions or changes in regulation.

Our current fees are lower than the maximum allowed in the trust deed. The trust deed sets out the maximum amounts that we may charge. We are entitled to charge contribution or exit fees of up to 6% of the amount contributed or withdrawn. The trustee is also entitled to charge up to 3% per annum for the administration and investment management fee and 3% for switches and up to $100 for the member account-keeping fee. The trust deed also allows the trustee to charge an indexed flat fee of $4 on all regular contributions. All fees quoted in this paragraph are exclusive of GST and the net cost of GST would be in addition to the stated fees.

Under the trust deed, recovery of a wider range of expenses than covered in the table above is allowed and the trustee may also levy special fees for any additional services it may provide. The trustee does not currently intend to make changes to the fees set out in the tables and will not increase fees set out in the tables without advance notice to members.

The trustee has the right to change fees without your consent and some fees may be indexed. We would always give you at least 30 days’ notice of any proposed increases to our fees, to allow you enough time to reconsider your investment.

Insurance charges (death; death & total and permanent disablement; and income protection)

If you have insurance through the Fund, then insurance premiums will be deducted in advance in July of each year. If you leave the Fund or if your insurance is cancelled during the year your account will receive a refund of the unused premium. Fifteen per cent of insurance premiums will be paid as commission. For further information, see Insurance options in the Product Disclosure Statement.

What is paid to your adviser?

If an investment is made through a licensed financial adviser, much of the contribution fee may be paid to them as commission. An adviser can rebate to investors a significant proportion of the contribution fee. However, neither the annual service fee, the administration and management fee nor the trustee portion of the contribution fee can be reduced through the rebate of commissions. If you wish to negotiate adviser payments or rebates, talk to your adviser.

We administer three types of commission to advisers:

1 Up-front commission – Up to a maximum of 3.5% (exclusive of GST) of your contribution for all strategies except for the Income Strategy (there is no commission payable where a member invests in the Income Strategy). The up-front commission is negotiable between you and your adviser, who may be prepared to waive or accept a lower commission (they might also charge a fee for their services). If your adviser rebates some or all of the up-front commission, we will, correspondingly, reduce your contribution fee.

2 Adviser trailing commission – Upon your instruction, up to 1.1% per annum of your account balance may be paid to your adviser in addition to the management fee paid to us. This trailing commission, if any, is an ongoing payment set by negotiation between you and your adviser, and should be reviewed regularly with your adviser. Note that this additional fee is deducted from your account balance. These trailing commission arrangements are different from those used in standard industry practice. (Standard industry commissions are typically included in administration and management fees.) Be aware that a trailing commission is usually ongoing and we continue to pay your adviser quarterly until you instruct us otherwise.

3 Switch commission – Up to a maximum of 1.5%(exclusive of GST) of the amount switched may be paid as commission when you switch to a strategy with a higher contribution fee. The commission payable to your adviser is indicated on your application form.

If you initially joined the Fund through a licensed adviser, and then subsequently instruct us that you no longer have a relationship with that (or any other) licensed adviser, then your contribution fees may revert to 4.1% on each contribution, subject to any other applicable discounts set out in Table 2 above.

Example of how up-front adviser commissions work in practice

Table 3 shows how up-front adviser commissions work in the Balanced, Equities and Large Companies Share and World Strategies.

Table 3: Example of up-front adviser commissions

The contribution amount is assumed to be $5000 and the maximum contribution fee is 4.1% of the contribution amount. In all cases, the trustee retains 0.5%, or $25, of the total contribution fee payable by the member. The up-front commission is included within the contribution fee. Calculations do not include contributions tax.

Up-front commission agreed with adviser - (exclusive of GST)	Contribution fee payable by member (inclusive of net cost of GST)	Amount invested into the Balanced, Equities or Large Companies Share or World Strategy (before contributions tax) (For ease of comparison the cents have been omitted from this column.)
3.5% - $175	4.1% - $205	$4795
2.0% - $100	2.5625% - $128.13	$4871
1.0% - $50	1.5375% - $76.88	$4923
0.5% - $25	1.025% - $51.25	$4948
0% - $0	0.5125% - $25.63	$4974

Example of annual fees and costs for a balanced investment option

Table 4 gives an example of how the fees and costs in the balanced investment option for this product (the Balanced Strategy) can affect your superannuation investment over a one-year period. You should use this table to compare this product with other superannuation products.

Table 4: Example of annual fees and costs

EXAMPLE - the Balanced Strategy	Balance of $50 000 with total contributions of $5000 during year. (For ease of comparison the cents have been omitted from this column.)
Contribution fees	0.5125% to 4.1%	For every $5000 you put in, you will be charged between $25 and $205.
PLUS management costs	2.15% per annum + $41 per annum ($0.79 per week)	And, for every $50 000 you have in the Fund you will be charged $1075 each year plus a $41 member fee regardless of your balance.
EQUALS cost of fund		If you put in $5000 during a year and your balance was $50 000, then for that year you will be charged fees of from: $1141 to $1321* What it costs you will depend on the investment option you choose and the fees you negotiate with your fund or financial adviser.

* Additional fees may apply:

If you take money out of your investment, a withdrawal fee of $51.25 (including net cost of GST) for any one-off withdrawal will apply. This fee does not apply to regular income stream payments.
If you have agreed a trailing commission with your adviser, the commission (plus GST) will also be deducted from your account balance.
Management costs shown in the table are calculated on the initial balance of $50 000 and ignore the $5000 contribution made during the year.
Management costs include an estimate of expenses indirectly borne by members of the Balanced Strategy because it invests in the Australian Ethical Balanced Trust. Strictly speaking, these expenses are not charged to members, rather they are deducted from the trust’s gross income before the distribution from the trust to the Fund is determined. The estimate is based on the actual indirect expenses for the year ended 30 June 2006, but the amount will vary from year to year. Management costs also include an estimate of expense recoveries borne by members of the Balanced Strategy (at 0.1% per annum). Similiarly, these expenses are not charged directly to members but are taken into account as part of the valuation cycle.
Please be aware that the example of fees and costs provided above does not show the impact of income taxation. This is different from the way fees and costs will be presented in your member statements.

^ top