Member outcomes assessment

Putting members' interests first

AustralianSuper’s purpose is to help members achieve their best financial position in retirement. Driven by this purpose and our members first culture, our strategy is to deliver strong long-term performance and provide help, education and advice to members when they need it.

Each year we’re required to assess for each product, our performance in promoting the financial interests of members. To do this we consider various comparison and assessment factors. For the financial year from 1 July 2023 to 30 June 2024, we’ve determined that the MySuper (our default product) and all choice products promote the financial interests of members.

Determination summary

Comparison factors

Returns

The MySuper Balanced option, where most members are invested, achieved net returns above the median for 5 and 10 year periods to 30 June 2024, but lower than the median for the 1 and 3 year periods³. The majority of our investment options achieved above median fund returns over 5 and 10 year periods relative to comparable options⁴.

Investment risk

We prudently manage risk to achieve each option’s investment objectives. The level of investment risk in our options is broadly consistent with the median level of risk in other MySuper and comparable choice options.

Fees and costs

AustralianSuper’s annual fees and costs (administration and investment) for a $50,000 account balance in the MySuper Balanced option are competitively ranked lower than the median of similar options.

The investment options outside the MySuper Balanced option were ranked in the best quartile for fees and costs on a $50,000 account balance⁵.

Assessment factors

Investment strategy

The Fund has an investment strategy for the whole of the Fund and for each investment option, including our MySuper product. Our assessment confirms each investment option’s strategy is consistent with its risk and return objectives and is appropriate for members.

Insurance strategy and fees

We recognise how important it is to have insurance cover. As a profit-for-member fund, AustralianSuper only charges members what it costs us to provide insurance cover.

Our guiding principle is that the cost of basic (default) insurance cover should be less than 1% of members’ average salary over their working life and less than 10% of their ultimate retirement balance. Our insurance fees (costs) for basic cover are comfortably below these thresholds and therefore do not inappropriately erode the retirement balances of members.

Options, benefits and facilities

AustralianSuper strives to make sure our products and services offer good value and meet the changing needs of members now and in the long run. Our analysis showed that the majority of our options, benefits and facilities continue to be well utilised.

Scale

We’re Australia’s largest super fund by both member assets of over $340 billion and membership (over 3.4 million) as at 30 June 2024. Our size enables us to capture economies of scale to reduce overall costs, provide competitive insurance cover and gives us access to attractive, large-scale investment opportunities.

Setting fees and operating costs

Fees are set in line with the Pricing Principles Policy which is designed to be appropriate for, and in the best interests of members by being competitive, equitable, sustainable, simple and compliant with regulations. AustralianSuper’s total operating expense to asset ratio is in the best quartile compared to other super funds, indicating that our expenses are at appropriate levels.