Realise The Dream

Innovation and regular engagement with fund members supports strong returns, writes Kirby Rappell, CEO of SuperRatings

- Kirby Rappell

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.