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 the Fund is required to assess its performance, by product, in promoting the financial interests of members. To do this we consider various comparison and assessment factors. This year we have determined that the MySuper (our default product) and all choice products promote the best financial interests of members.
Benefit from our size
As Australia’s largest super fund our size helps us deliver better outcomes for members.
Profit for members
As a profit-for-member fund, we don’t pay profits or dividends to shareholders.
Long-term performance
Our Balanced investment option has consistently delivered strong long-term performance for members1.
Determination summary
Comparison factors
Returns
Returns – The MySuper Balanced option, where most members are invested, achieved net returns above the median for 3 and 5 years to 30 June 2023, but lower than the median for the one-year period2. The majority of our investment options achieved above median returns over 5 and 10 year periods relative to comparable funds3.
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 products.
Fees and costs
AustralianSuper’s fees and costs for the MySuper Balanced option are in the lowest 25% of comparable funds in the superannuation industry. Our annual fees and costs (administration and investment) for a $50,000 account balance in the Balanced option are competitively ranked in the lowest (best) 25% of similar products4.
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 active management approach is focused on delivering strong long-term net returns.
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 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 and that the administration fee that enables their provision is better than benchmark median5.
Scale
We’re Australia’s largest super fund by both member assets of nearly $300 billion and membership (3.2 million) as at 30 June 2023. 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 beneficiaries by being competitive, equitable, sustainable, simple and compliant with regulations. AustralianSuper’s operating expense to asset ratio is below the median of other super funds, indicating that our expenses are at appropriate levels.
1. AustralianSuper Balanced investment option compared to the SuperRatings Fund Crediting Rate Survey - SR50 Balanced (60-76) Index to 30 June 2023. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns .
2. Net return (sometimes called net benefit) is the return after administration and investment fees and costs, transaction costs and taxes for a representative member with an account balance of $50,000. Based on APRA Quarterly Statistics, for periods to 30 June 2023, and includes life-cycle products that have the approximate ratio of 70% growth and 30% defensive assets which is the most appropriate comparison to the AustralianSuper MySuper Balanced option. Investment returns are not guaranteed. Past performance is not a reliable indicator of future returns.
3. SuperRatings Fund Crediting Rate Survey to 30 June 2023. Investment returns aren’t guaranteed. Past performance is not a reliable indicator of future returns.
4. Based on APRA Quarterly Statistics at 30 June 2023. For products with approximate ratio of 70% growth and 30% defensive assets, including life-cycle products.
5. 2023 APRA Annual Performance Test. The representative administration fee reflects the administration fees, costs and taxes charged to a representative member with a $50,000 account balance over the 2022/23 financial year.