Indirect Cost Ratio Fee

Superannuation Indirect Cost Ratio Fee is a fee that is charged to you.  The fee’s justification is that it is charged by a third party provider for administration of funds.  Cost descriptions may include – brokerage, stamp duty, administration charges, etc..

For example a fund called the Super ESG Index maybe sold by the superannuation fund indicating our investment fee is just 0.25%, however the Indirect Cost Ratio Fee is 0.89% .  The Indirect Cost Ratio Fee is then disassociated, by the fund saying – the fee is not paid to us but is a cost passed on to us by the managers of the fund.