Performance fees are included in your investment fees and costs. We have them in place because we believe they encourage our investment managers to try to deliver outperformance.
While we pay performance fees to some of our external investment managers when they outperform an agreed performance target, if the managers underperform and targets are not met, then no performance fee is earned. As a result, the amount paid in performance fees can change from year to year, depending on how our investments perform.
In our product disclosure statement (PDS), we're required to show you an idea of what you might pay in performance fees. These performance fee estimates are an average of the last 5 financial years. This means the actual investment fees shown on your annual statement or our Annual Report may be higher or lower than what's in the PDS or on our website.