Accumulation Net Benefit model for: Compare the Pair advertising, the Compare the Pair tool and general performance claim in advertising campaigns.
Industry Super Australia has commissioned SuperRatings to undertake the research and modelling used in AustralianSuper advertisements and communications. SuperRatings is a ratings, research and consultancy company that specialises in analysing superannuation funds, their investment returns, their fees and the relative benefits they offer to their members. The Accumulation Net Benefit model, prepared by SuperRatings, calculates the variance in earnings and fees between AustralianSuper and retail super funds (also known as retail master trusts) over different time periods, with the default comparison being the 5, 10 and 15 years to 30 June 2023.
Background to the Accumulation Net Benefit model
Sample Set: The number of investment options used in the modelling contains AustralianSuper’s balanced investment option and the retail super funds which are actively tracked by SuperRatings, including superannuation investment products that are open and those that are closed to new members but continue to hold assets.
As at 30 June 2023, the number of retail super products included in the sample set for each comparison period is:
|Sample Set Summary
As At 30 June 2023
|Retail Master Trusts
Information about the Accumulation Net Benefit model
- The model uses the ‘main Balanced option’ being the fund’s largest Balanced option where 60% to 76% of the fund’s assets are invested in growth investments. This is generally the fund’s default option. Where a fund does not have a Balanced option, the option closest to SuperRatings benchmark range of 60% to 76% growth investments is used. This is done for each product provider in the sample set.
- The model uses return and fee data that is submitted by funds to SuperRatings, made publicly available by funds or contained within formal fund disclosures as at each year.
- Using the starting account balance and salary, the contributions, earnings and fees are calculated using data each year to derive the closing account balance at the end of each year.
- The closing account balance for the previous year is then used to calculate earnings and fees on the account in the following years. With the process being repeated for each year of the comparison.
- The net benefit for each product refers to the cumulative earnings less fees for the relevant comparison period.
- The average net benefit of retail super funds is calculated by taking an average of all net benefit outcomes at the end of the comparison period for the retail products actively tracked by SuperRatings.
- The net benefit is calculated for each product which has sufficient return and performance history information available over the entire comparison period. Where this information is not available, those products are excluded from the calculation.
- The model assumes no additional contributions or withdrawals over the relevant comparison period.
- The model will be updated with 30 June and 31 December figures.
- Modelling was performed on 17 August 2023 using data as at 30 June 2023.