Management costs

The Management Costs can be broken down into a number of components.

The Administration Costs fee is the $1.10 per week fee that is used to pay for the fees and costs for administering Media Super, including the payment of custody fees, trustee expenses, professional services expenses and other expenses.

This fee is also referred to as the member fee and is deducted monthly from your account balance.

The Other Expenses fee is used to pay for costs not covered by the Administration Costs fee, including a proportion of the fees in relation to the payment of custody fees, trustee expenses, professional services expenses and other expenses.

Media Super charges a fee of 0.10% p.a, which is deducted from the Fund's assets before unit prices are determined on a weekly basis. The unit price issued is net of Other Expenses. Media Super will perform reconciliations of actual expenses paid and the Other Expenses charged on a periodic cycle.

If the actual Other Expenses incurred are greater than the fee charged, then the unit prices for members could be decreased. If the actual Other Expenses incurred are less then the fee charged, then the unit prices for members could be increased.

The Investment Manager Fee is the fee for investing in the Fund's assets. It includes fees paid to external investment managers and other expenses incurred in investing the assets (excluding transaction costs).

All investment managers are paid a fixed fee for investing the assets. The fixed fee paid to each of the investment managers varies from manager to manager, and is deducted from the particular investment option on a weekly basis prior to the unit price being calculated. This fee is not deducted from your account.

The fee for each investment option is shown below. These figures were determined based on indicative annualised calculations using information for the period 1 July 2008 - 30 September 2009. These calculated annualised rates will change throughout the year due to cash flow, changes in the Fund's investment manager line-up, changes in asset allocation and other influencing factors.

Some investment managers are also paid a Performance Based Fees (PBF).

Notes:

The Investment Manager Fee may change due to several factors, including: timing, cash flow, changes in the investment manager line-up, changes in asset allocation and other factors.

All fee calculations are inclusive of GST. Reduced input tax credits have been incorporated into the Administration costs.

* See Performance Based Fees (PBF).