CFS announces platform fee reductions

Colonial First State has announced fee reductions across its superannuation and investment platforms.

The company announced to the Australian Securities Exchange (ASX) that it would be lowering costs to members across its FirstChoice Wholesale platform, FirstChoice Employer Super and FirstWrap Plus platform effective from early June in line with updates to the relevant product disclosure statements.

It said the changes were projected to result in a total benefit to members of approximately $68 million a year with the impact on net profit of around $45 million.

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Commenting on the changes, Colonial First State acting executive general manager, Kelly Power said the changes were aimed at making the company’s platforms and investments as cost effective as possible.

The company also announced it was introducing three new low-cost Colonial First State Index options (Conservative, Diversified and Growth) to both FirstChoice Wholesale and FirstWrap Plus with investment fees on existing CFS Index Options being reduced.

The company said FirstWrap Plus tiered administration fees would be reduced by 30 per cent, FirstChoice Wholesale would introduce improved fee rebates for members with a stating balance of $100,000 and FirstChoice Employer Super would have investment fees reduced.

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Positive developments from CFS. Let's hope they don't undo all the goodwill by introducing unworkable processes for paying advice fees from products.

Another important aspect has arisen since the terrorist attacks in Sri Lanka. Young members with low balances love to travel. So we should not message these members to warn them of the way that this new legislation will affect them and their families ?

Would insurance cover them??? I thought most policies excluded acts of war and terrorism.

You are right however, go back to the Bali Bombings and you will see that all the insurers paid. Also, each incident is defined and it is not immediately decided if the incident is excluded. Either way, my nephew’s friend was recently killed by a government vehicle rushing to an incident in Vietnam. Are you prepared to risk such a loss when the claim on such an incident may be considered a worthwhile goodwill payment ?
To simply exclude such a risk is too risky.

Thanks Jossel.

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