Colonial First State, the investment, superannuation and retirement product arm of Commonwealth Bank of Australia, announced Thursday a reduction in fees beginning in June that it estimates will cut investment costs for more than 500,000 of the company's clients by a combined A$68 million ($48.8 million) a year.
The firm, in a statement to the Australian Securities Exchange, said those fee reductions will include a 30% cut to tiered administration fees for super and pension clients of its FirstWrap Plus offerings. Members with an average balance of A$400,000 would save A$782 a year, the statement said.
Members of Colonial's FirstChoice Employer Super plan with a balance of A$50,000, meanwhile, would see a A$100 reduction in annual fees, the statement said.
Lowering fees "will benefit member retirement savings outcomes, and we're aiming to make our platform and investments as cost effective as possible for them," said Kelly Power, acting executive general manager, in the statement.
A royal commission inquiry into financial sector misconduct in Australia, which concluded at the start of 2019, found more problems in need of redress among bank-sponsored, for-profit superannuation funds than in non-profit industry fund counterparts.
A Colonial First State spokesman couldn't immediately be reached for comment.