Best Super Fund Manager
Innovation and regular engagement with fund members supports strong returns, writes Kirby Rappell, CEO of SuperRatings
We are now three years on from the introduction of MySuper, the low-cost default product that each fund is required to provide, and it has continued to put downward pressure on fees across the industry. However, a focus on fees and costs does not always drive the strongest member outcomes, so it is important to take a holistic view of your super and consider the outcomes achieved once fees, costs and investment earnings are applied.
But comparing funds can be an overwhelming task given the large number of them. This is compounded by the fact that most offer multiple investment options, which have different objectives, asset mixes and returns. It’s no wonder that many people struggle to answer the question, “Which fund is right for me?”
Given the bewildering amount of information available, SuperRatings has once again helped Money to conduct an in-depth analysis of the funds on offer. This year we reviewed over 440 superannuation products and a further 180 pension products that are open to all Australians, to seek out those funds that provide the best value for money.
Our ratings process focuses on a range of categories that are crucial to identifying which funds are providing the best value-for-money outcomes. We follow a consistent process each year that considers measures relating to investments, fees and charges, and insurance.
These quantitative aspects are vital, yet other features are also important to members so we make sure that we consider features that contribute to how user
friendly a fund is, as well as its ability to drive non-monetary outcomes. Officially, we assess funds in terms of administration, member education, financial advice and governance, to make sure our ratings are well rounded and reflect members’ perceptions and needs.
This process provides enough flexibility to allow us to deal with the product landscape, which continues to evolve, while ensuring a robust and comparable approach over time. In total, we consider 400 separate measures for each product and we strongly believe our ratings process is the most comprehensive indicator of what benefits members ultimately receive.
We continue to see positive changes across the industry and it is pleasing to be able to say that competition this year was extremely strong. Innovation in the way super funds use data and analytics helps provide consumers with more engaging and tailored products.
LEADING THE WAY
We are pleased to announce that Queensland-based Sunsuper has been selected as Money’s Best Super Fund Manager as well as the Best Pension Fund Manager for 2018.
Sunsuper’s innovative approach confirms its place as this year’s industry leader with advances across areas including its approach to engaging with its members, strong investment performance, competitive fees and strong retirement products.
Sunsuper holds over $46 billion in assets under management for over 1 million members, including $4 billion in retirement savings for 12,000 pension members. It is committed to improving the customer experience with a highly tailored new website, new mobile app, improved customer servicing and a targeted rewards program called Dream Rewards, to name a few initiatives.
“Sunsuper is thrilled to win both the super and pension fund manager awards this year,” says CEO Scott Hartley. “As one of the nation’s biggest and fastest growing profit-for-members funds, we are heavily focused on delivering innovative products and services to our members such as our new-look website and mobile app which we launched this year to deliver more personalised customer experiences. Our Dream Rewards program also offers members exclusive deals and discounts at companies across Australia – and points don’t have to be earned to access the rewards.
“At Sunsuper, we see our purpose as inspiring and empowering Australians to fulfil their retirement dreams. It motivates us to deliver great customer experiences and help members grow their super through industry-leading products and services, solid long-term returns and low fees.”
Another impressive initiative is the Dream Project, which engages members through education with targeted communications and information about retirement, including access to free seminars.
The Sunsuper for Life product provides a whole-of-life solution, with streamlined processes and communications helping members manage their super from the beginning of their working life until retirement. On retirement they can transition into the Sunsuper for Life income account.
Sunsuper for Life has an extensive investment menu of 21 diversified and single-sector options (as at June 30), including both actively managed and index investment strategies. Sunsuper is also reaping the benefits of restructuring its investment approach three years ago – this involved reviewing its approach in Australian and international equities while maintaining a strong commitment to alternative assets such as infrastructure and private equity.
The balanced option has outperformed the SuperRatings Index over the short and long term; as at June 30, 2017, the fund’s balanced option returned 5.3%pa over 10 years for its superannuation members, compared with an industry average of 4.8%.
Administration fees for the balanced option are lower than the industry average across a range of account balances. For example, on a $50,000 balance Sunsuper is 44% cheaper than the industry average. No establishment, contribution or investment switching fees are applicable, although an exit fee does apply.
Sunsuper also offers members a very flexible and competitive insurance package. A full suite of cover is accessible, with automatic death and TPD Assist cover and opt-in income protection available to eligible members upon joining the fund.