Investment
performance |
 |
Exceeded performance objectives and produced competitive returns against the industry median. |
| Fees and costs |
 |
Due to our active investment management approach which is applied to all investment options, as well as a more comprehensive service offering for members, our total fees are higher than the industry average. We are actively working to improve our economies of scale and reduce fees and costs. |
| Insurance |
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Our insurance premium is lower compared to the industry standard, ensuring members’ super balances are not unnecessarily eroded. Insurance offerings are tailored to a member’s age and gender. |
| Options, benefits and facilities |
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Members have access to a high level of personalised service including Australian-based Member Care contact centre, client relationship managers and financial advisers (city and regionally based). |
| Operating costs and scale |
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Overall, we deliver equitable operating cost outcomes for members based on our benefit designs, scale and services delivered. We are actively exploring options to reduce our costs and improve our economies of scale. |
- The Active Super Lifestage Product is based on the anticipated investment needs and objectives of members by age group.
- A member’s investment is automatically moved to lower risk options as the member gets older (the following diagram shows each investment option’s exposure to growth assets. A higher exposure has a higher risk rating, with the potential for a higher investment return).
- By investing in this way, younger members are invested in riskier investments with higher potential growth, while older members are progressively ‘de-risked’ over time, reducing their exposure to investment market volatility.
Investment performance compared to investment objective benchmark
The Active Super Lifestage Product passed the APRA performance test with all life stage investment options exceeding their stated performance objectives.
The below graph shows our performance vs objective over 10 years.
Source: Australian Bureau of Statistics, SuperRatings SMART database - All Fund data as at 30 June 2022.
SuperRatings returns are calculated net of investment fees, tax and implicit asset-based administration fees. Explicit fees such as fixed dollar administration fees are excluded.
Investment objectives for the Active Super Lifestage Product
| Option name |
(Benchmark) Investment objective |
| Accelerator (High Growth) |
3.5% net investment return per annum above CPI, measured over a rolling 10-year period. |
| Accumulator (Balanced) |
3.0% net investment return per annum above CPI, measured over a rolling 10-year period. |
| Appreciator (Conservative Balanced) |
2.0% net investment return per annum above CPI, measured over a rolling 10-year period. |
Investment returns compared to the industry median
These tables compare the investment performance of the Active Super Lifestage Product options with the industry median.
- The Accelerator, Accumulator and Appreciator options all performed above the industry median.
- The Active Super weighted average for our Lifestage options performed in the top quartile across the Industry – thus have been ranked as 5 Leaves.
Source: SuperRatings SMART database - All Fund data as at 30 June 2022.
SuperRatings returns are calculated net of investment fees, tax and implicit asset-based administration fees. Explicit fees such as fixed dollar administration fees are excluded. The Heatmap returns are net of dollar based admin fees as well as implicit fees and are therefore different to SuperRatings data.
- We are a ‘Profit to Members Fund’, with the fees and costs charged on a cost recovery basis.
- Our fees reflect the active investment management approach applied to all our investment options, as well as the high levels of service and support we offer members (see Options, benefits and facilities section). However, we’re always looking for ways to reduce fees across the board.
- As part of our commitment to transparency, we also break down our fees on member statements so you can see exactly what each fee is for:
- Administration fees: are based on the forecast costs of running the fund (including implementation of legislative changes and required enhancements) and any funds not utilised are returned to members.
- Investment costs: are charged on a cost recovery structure to exercise care and expertise in managing your retirement savings.
Fees and costs compared to industry average
This table shows our fees for the Active Super Lifestage Product white to yellow on the APRA heatmap, with fees trending more expensive for higher balances.
Source: APRA Heatmap effective 1 October 2022.
Active Super fees versus the industry average
This graph shows that our total fees for the Active Super Lifestage Product are higher than the industry average.
This is due to our active investment management approach, which we apply to all investment options, and our comprehensive service offering to members.
Active Super level of insurance cover
Basic insurance cover is provided automatically to eligible members when they join the Active Super Accumulation Scheme (e.g. you are above 25 years and have a balance of more than $6,000 in your account).
- No medical examinations are needed.
- This cover ensures most members have insurance that suits their needs through various stages of life.
The table below shows the level of Basic insurance cover for various age brackets.
Lifestage insurance
Indicative representation of the amount insured at different stages of life.
Active Super Insurance premiums are lower than the industry standard
Our intention is to provide Active Super members with Basic insurance cover at a competitive cost at every stage of life. The following graph shows that our Basic insurance premiums are generally less than half the industry standard, with the average premium being 0.3% of salary
for the FY 2021/22.
Source: Active Super, estimated average salary per age bracket (gender based), vs premiums.
The products, services and benefits we offer are in line with our target market, members’ needs and requirements, and are offered in their best financial interests. The services detailed below are available to all MySuper and Choice Super members:
- Active Super Booster: launched in May 2022, is a first for super funds allowing members to give their super a boost.
How does it work: when our members join the program and shop either online or in-store with participating retailers, they will receive a proportion of the purchase as a contribution paid into their Active Super account.
It’s not a round up, it’s a cashback covered by the retailer. We see this as a way for all members, no matter their financial circumstances, to be able to engage with and grow their super.
- Super View: in another industry first, we launched Super View, an intuitive online interactive tool that helps members see exactly where and how their super is invested.
| Service Provided |
Description |
| Member Care Contact Centre Team |
- Australian-based, internally operated and managed, well-resourced team
- Available via phone, email and webchat channels
- Face-to face meetings in Sydney, Newcastle and Wollongong
- Offers general advice to members
- Call answered in 37 seconds on average
|
| Client Services Team |
- Services employers and members at their work place
- Hosts education seminars for members
|
| Financial Adviser Team |
- Intra-fund, limited and comprehensive advice services
|
| Digital Services |
- Mobile app (balances, transactions, changing investments and insurance details, statements and member correspondence)
- Online application, account updates and changing investment and insurance details
- Online calculators available to members and non-members
- SuperMatch2 services
- Webchat
|
| Head and Regional Offices |
- Sydney, Newcastle, Wollongong
|
| Shared Offices |
- Parramatta, Tamworth, Orange, Wagga Wagga, Ballina
|
| Service Provided |
Description |
| Member Care Contact Centre Team |
- Overall Satisfaction = 8.0/10
- Trust = 8.3/10
- Quality of Service = 8.1/10
- Calls answered in 37 seconds on average
|
| Financial Adviser Team |
- Quality of Service = 8.1/10
- Overall Satisfaction = 8.0/10
- Trust = 8.3/10
|
Source: CSBA and CoreData
Active Super is classified as a medium sized fund with approximately 87,000 member accounts and $13.5bn in Funds Under Management (FUM) as at 30 June 2022. We do not pay dividends or return surplus capital to shareholders, we return them to you, our members.
We manage our operating costs prudently and in your best financial interests. Fees collected are used to provide value-for-money products, services and benefits.
Active Super Operating Cost per Member
Source: APRA Annual fund-level superannuation statistics June 2022.
Our operating costs are above the Industry Median. We continue to look for ways to reduce operating costs to members and have signed a Memorandum of Understanding with Vision Super to explore a potential merger. Such a merger would almost double the size of the fund and give us greater resources to provide products, services and benefits, while potentially lowering operating costs and fees for members.
The potential merger with Vision Super may bring improved economies of scale and savings that we can pass on to members.
