We provide a lot of information on each super fund, their products and investment options. Let’s break it down bit by bit.
Selecting Super Quality Award
Firstly, check to see if the super fund has the Rainmaker SelectingSuper Quality Award logo. SelectingSuper celebrates the best superannuation funds in Australia through a rigorous research and ratings program, awarding funds the AAA Quality Assessment. If the super fund does not have AAA rating, seriously consider whether this product is right for you.
This information provides you with super fund details and their contact information. If you are interested in a super fund (or you are a member), you can click through to their website or give them a call if you have any questions.
Product and Investment Options
The product and investment option you selected from the ranked fund list or featured fund area will be presented here. You have the option to select a different product and investment option that is offered by the super fund by selecting a different radio button. This will change the data presented in the graphs below.
Here you are provided with the product Unique Superannuation Identifier (USI). This is used in member communications from the super fund, including switching (rollovers) between funds.
Product Disclosure Statement (PDS)
This button takes you to super fund PDS webpage. Before you consider switching super funds, check the PDS and consider your life insurance needs.
Your Selected Option
To help you understand your selected product and investment option, we’ve provided five sets of information - rank, net return, fees, investment strategy, and member benefits. We explain each section below.
The rank graph compares your selected investment option against other investments in the same category – growth, balanced or capital stable. We compare investments in the same category because they have similar risk.
Each number represents the investment performance ranking for each return period – 1, 3, 5, 7 and 10 years. The lower the number, the higher the rank, and better the investment performance.
For example, if your selected investment had a rank of 3, it would the third best performing investment for that period. Alternatively, if the number is 68, it would be the sixty eighth best performing investment… somewhat less impressive.
A net return is what is left in your pocket after the super fund takes out their fees. We use a net compounding return as our key comparison metric as it considers investment performance, fees and the impact of compounding interest (earning interest on your interest) each year.
Each number on the net return graph represents the percentage (%) net return for each return period – 1, 3, 5, 7 and 10 years. The higher the number, the better the investment performance.
It is no surprise for those who remember the Global Financial Crisis (GFC) or the Dot.com bubble that investments go up and down. Some years the share market performs well, other years it may have low or negative returns. The net return graph reflects changes in investment performance over time.
For example, if the net return was 10% over 1 year, but only 6% over 7 years, this would reflect that over the 7 years there was low or negative investment performance. This might be due to a general drop in the market, not poor investment decisions by the super fund. To check by back at the ranking graph – did the ranking go up or down when times were tough? A 6% return over 7 years might be a fantastic result if the other super funds did worse!
Fees suck. In superannuation the fees you pay are hard to work out. For this reason, we provide a comparison rate called “Total Management Fees” and a table of “Other Fees”.
Low Total Management Fees and no Other Fees is what good looks like. For more information about what all the fees mean and when they will be charged, check out out Fees article our Guide to Superannuation.
Total Management Fees
This the percentage taken from your super account each year. Super funds typically charge their fees daily. The higher the number, the more that is taken from your account. Fees are unavoidable, but they should be fair and reasonable.
If you are paying over 1.5% the investment performance better be awesome to justify the cost! If you believe advertising, industry funds have the lowest fees. However, this is not always the case, some indexed investments and retail funds have lower fees than industry funds. While industry funds are not-for-profit, some of the investment managers and administrators they employ are huge global corporations run to profit shareholders.
Super funds offer a range of investment strategies to meet the needs of different members. Each strategy allocates different amounts of your super money to growth and defensive assets. The investment sector graph provides a quick visual representation of this breakdown for your selected product and investment option. You can get a more detailed breakdown of the investment strategy and asset allocation by reading the Product Disclosure Statement (PDS).
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General advice disclaimer
This is general information only and does not take into account your personal objectives, financial situation or needs. You should assess whether the information is appropriate for you having regard to your objectives, financial situation and needs and consider obtaining independent professional advice before making an investment decision. If information relates to a specific financial product you should obtain a copy of the product disclosure statement for that product and consider that statement before make a decision whether to acquire the product.