MySuper comes out strong
Every year, we’re required to assess the performance of our MySuper product to determine if it’s promoting the financial interests of our members. Our MySuper product is our Balanced investment option. It's the default option for our Accumulation 1 and Accumulation 2 members, and any accumulation component of our defined benefit members.
We’re pleased to report that, after thoroughly assessing our Balanced (MySuper) investment option for the year ending 30 June 2020, we can confidently state that it is promoting our members’ financial interests.
This is great news for you, giving you assurance that your super is in good hands.
How we shaped up
We assessed our Balanced (MySuper) investment option through two key areas (as prescribed by law): 1. How we compare on fees and returns (Comparison matters) and 2. Other member benefits (Assessment factors).
1. How we compare on fees and returns
Using public data from the Australian Prudential Regulation Authority (APRA), we compared the performance of our Balanced (MySuper) investment option with the other default product options in the industry. The results showed that our members have benefited from both low fees and strong investment returns, while maintaining a risk profile comparable to our peers.
Our fees are some of the lowest
Our Balanced (MySuper) investment option had one of the lowest fees in the industry. Based on APRA’s data, the following chart shows that our fees for a member with a $50,000 account balance were lower than most other comparable products (based on similar risk profiles).
Graph 1: Fees and costs
This graph shows UniSuper's annual fees and costs compared to the industry average and other funds. Source: APRA Quarterly MySuper Statistics, June 2020
Not only cheaper than the average super fund, we stacked up very strongly against some of Australia’s largest super funds.
Positive returns for our members
Despite the impact of COVID-19 on global markets, most of our members achieved positive returns for the year ending 30 June 2020. Our Balanced (MySuper) investment option provided a positive return - a stronger position compared to most other funds.
UniSuper was one of the top performing funds over the 1, 3 and 5 years ending 30 June 2020, ranking in the top 10 when measured against over 60 super funds.
| Period ending 30 June 2020 | Investment returns (similar risk profile) | ||
|---|---|---|---|
| 1 year (% p.a.) | 3 years (% p.a.) | 5 years (% p.a.) | |
| UniSuper | 0.68% | 6.77% | 7.07% |
| Average | -0.83% | 4.92% | 5.31% |
| Rank | 8 (out of 77) | 1 (out of 73) | 2 (out of 67) |
Graph 2: 1 year investment returns
This graph shows UniSuper's 1 year investment returns compared to the industry average and other funds.* Source: APRA Quarterly MySuper Statistics, June 2020
Graph 3: 3 year investment returns
This graph shows UniSuper's 3 year investment returns compared to the industry average and other funds.* Source: APRA Quarterly MySuper Statistics, June 2020
Graph 4: 5 year investment returns
This graph shows UniSuper's 5 year investment returns compared to the industry average and other funds.* Source: APRA Quarterly MySuper Statistics, June 2020
Not only did we perform well above the average, we also compared favourably to some of the other largest funds in Australia.
For the year ending 30 June 2020, our members in the Balanced (MySuper) investment option benefited from both industry-leading low fees and stronger investment performance.
Level of investment risk
The level of investment risk of the Balanced (MySuper) investment option is appropriate to its investment objective and is comparable to that of our peers.
2. Other member benefits
Our Balanced (MySuper) investment option was also reviewed based on all round value – the benefits of being a UniSuper member:
We're for members
As an industry fund we keep our members front of mind. We don't pay our advisers commissions, and we don't pay shareholders dividends. In addition, we review our fees annually, across:
- different groups of members within the fund, to ensure our fees don’t favour any group, and
- the industry, to ensure our fees remain competitive.
We're satisfied that we've met both goals.
Scale and efficiency
With over $90 billion of funds under management, you benefit from the scale of one of the largest super funds in Australia (5th largest by assets, as at 30 June 2020). Because of this, we’re able to provide services more efficiently, with one of the lowest operating costs in the industry. This means lower fees and greater value for members.
A range of options and services
With your membership comes:
- access to a great range of educational resources to help you manage your super, including online tools and calculators, videos, podcasts and webcasts
- an award-winning financial advice service - from general advice through to comprehensive personal advice, we can help you make the most of your money. We’re also on campus, bringing our services to you.
Investment strategy
We regularly review our Balanced (MySuper) investment option investment strategy to ensure the level of investment risk and the return target are appropriate. For the period ending 30 June 2020, we've determined they're still appropriate for our members. Additionally, we can confirm that the investment objective was met.
Responsible and sustainable investing
We’ve recently reached the milestone of $10 billion in funds under management across our three dedicated environment, social and corporate governance (ESG) investment options. As Australia’s largest super investor in ESG-themed investments, we play an important role in shaping how the companies we invest in respond to and address the threat of climate change.
We’re committed to achieving net-zero carbon emissions in our investment portfolio by 2050, in alignment with the Paris Agreement.
We’re an award-winning fund
We’re known as one of Australia’s best super funds for our strong investment performance.* We’re proud to be consistently recognised as an award winning fund, including Chant West Best Fund: Advice Services 2020 and more recently, being awarded 2021 MySuper of the Year by SuperRatings.
Competitive insurance cover
We aim to provide you with appropriate and affordable insurance cover. Because we insure a lot of members, we’re able to negotiate premiums at group rates. Based on an assessment of member needs, we’re satisfied that, overall, our insurance strategy is appropriate, and our premiums are affordable.
We’ve also signed on to the Insurance in Superannuation Voluntary Code of Practice. This involves a complete review of our insurance offering, with the objective of ensuring high standards in the delivery and provision of benefits.
* Past performance is not an indicator of future performance. This information is of a general nature only and includes general advice. It has been prepared without taking into account individual objectives, financial situation or needs. Before making any decision in relation to investing in UniSuper and/or your UniSuper membership you should consider your personal circumstances, the relevant product disclosure statement and whether to consult a licensed financial adviser.