Summary of determinations
Our MySuper Balanced option, where most members are invested, achieved outstanding net returns to 30 June 2021 when compared to other MySuper products over 1, 3 and 5 years. The majority of our other investment options also had strong investment returns relative to comparable funds.
We manage risk carefully across all of our options. The level of investment risk in our options is broadly consistent with the median level of risk in other MySuper and comparable choice products.
Fees and costs
AustralianSuper’s fees are low compared to the median in the superannuation industry when invested in the Balanced option. Our annual fees (admin and investment) for a $50,000 account balance in the Balanced option are competitively lower than the median of products that have the approximate ratio of 70% growth and 30% defensive assets which is the most appropriate comparison to the Balanced option.
We offer a range of investment options with different asset allocations and risk profiles, to suit the different needs of members. Our active management approach continues to drive lower investment costs and deliver top-performing long-term investment performance for the majority of our investment options.
Insurance strategy and fees
We recognise how important it is to have insurance cover. That’s why we work hard to keep costs down and provide affordable insurance cover options for our members.
Our guiding principle is that the cost of basic (default) insurance cover should be no more than 1% of a members’ average salary over their lifetime (in super) to retirement and should not erode the ultimate retirement balance by more than 10%. Our insurance fees 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 ensure our products and services offer good value and meet the changing needs of members now and in the long run. Extensive cohort analysis was undertaken as part of the assessment and showed that our options, benefits and features are well utilised across all segments.
We’re Australia’s largest super fund by both member assets ($233b) and membership (2.5m) as at 30 June 2021. Our size enables us to capture economies of scale to reduce overall costs and gives us access to attractive, large scale investment opportunities.
Setting of fees and operating costs
The fees and costs we charge are designed to provide good long-term value and to be simple, sustainable, competitive and equitable. AustralianSuper’s operating expense to asset ratio are well below the median of other super funds, and shows the fees are set appropriately in the best financial interests of members.