Summary of determinations
Returns – Our MySuper Balanced option, where most
members are invested, achieved net returns above the median for the 1, 3 and 5
year periods**. The majority of our other investment options also achieved
above median investment returns over 1, 3, 5 and 10 year periods relative to
We prudently manage risk with the aim 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 products.
Fees and costs
AustralianSuper’s fees and costs are lower than the
median in the superannuation industry when invested in the MySuper Balanced
option. Our annual fees and costs (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‡.
As required by regulation, the Fund does have an
investment strategy for the whole of the fund and for each investment option,
including our MySuper product. Our active management approach focuses on
delivering strong long-term net return performance.
Insurance strategy and fees
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 members.
Our guiding principle is that the cost of basic
(default) insurance cover should be no more than 1% of 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
We’re Australia’s largest super fund by both member
assets ($258b) and membership (2.87m) as at 30 June 2022. Our scale does not
disadvantage the financial interests of members holding the relevant products.
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.