AustralianSuper | Super Fund Review

AustralianSuper - Pre-mixed, Balanced option
AustralianSuper - Pre-mixed, Balanced option Find out more Go to site

Choose from an extensive range of investment options to tailor superannuation to suit your retirement needs.

AustralianSuper is an industry super fund run only to benefit its members, not to create profits for shareholders. It manages over $100 billion in assets on behalf of more than 2.1 million members, making it Australia’s largest industry super fund.

If you’re thinking of joining AustralianSuper, read on to find out what this fund offers to its members.

Key features

AustralianSuper members can access a range of competitive features, such as:

  • Mobile app. The AustralianSuper mobile app makes it easy to access your super on the go. You can use the app to check your balance, change the way your super is invested, update your details and more.
  • Educational tools. AustralianSuper members can access a variety of seminars and educational programs to help you understand how super works and better manage your investments.
  • Financial advice. Members can also access a wealth of online financial advice and planning tools to help you take control of your finances. Fee-for-service financial planning is offered as well.
  • Discounted financial products. As a member of this fund, you’re entitled to discounted rates on banking products with Members Equity Bank and health cover with GMHBA health insurance.
  • Member Direct. Designed for members who want more control over their super, this option lets you invest in the S&P/ASX 300 Index, Exchange Traded Funds (ETFs) and term deposits all from one online account. Features include real-time trading and access to extensive independent research and investment tools to help you get more out of your super.

Investment options

AustralianSuper offers three types of investment options for you to choose from – PreMixed, DIY Mix and Member Direct. Each option is designed to suit the risk tolerance, investment timeframe and level of control desired by a variety of investors. If you don’t want to choose an option, your super will be invested in the MySuper-compliant PreMixed Balanced Investment option.

Option 1: PreMixed

AustralianSuper PreMixed options are diversified portfolios that invest across combinations of different asset classes including shares, property, fixed interest and cash. They're designed for investors who only want a minimal amount of hands-on involvement with their super.

Check the table below for a breakdown of each of the six PreMixed options.

Risk levelAsset allocationPast 5-year performance
High Growth
  • < 5 years: High
  • 5-20 years: Medium
  • > 20 years: Low to medium
  • Australian shares: 32%
  • International shares: 43.5%
  • Direct property: 5%
  • Infrastructure: 9%
  • Private equity: 3.5%
  • Credit: 4%
  • Cash: 3%
12.62% p.a.
Balanced (MySuper option)
  • < 5 years: High
  • 5-20 years: Medium
  • > 20 years: Low to medium
  • Australian shares: 25%
  • International shares: 34%
  • Direct property: 7%
  • Infrastructure: 13%
  • Private equity: 3%
  • Fixed interest: 2%
  • Credit: 6%
  • Cash: 10%
11.41% p.a.
Socially Aware
  • < 5 years:
  • 5-20 years:
  • > 20 years:
  • Australian shares: 25%
  • International shares: 34%
  • Direct property: 7%
  • Infrastructure: 13%
  • Private equity: 3%
  • Credit: 6%
  • Fixed interest: 2%
  • Cash: 10%
11.45% p.a.
Indexed Diversified
  • < 5 years: High
  • 5-20 years: Medium
  • > 20 years: Low to medium
  • Australian shares: 32%
  • International shares: 38%
  • Fixed interest: 17%
  • Cash: 13%
8.73% p.a.
Conservative Balanced
  • < 5 years: High
  • 5-20 years: Medium
  • > 20 years: Low to medium
  • Australian shares: 17.5%
  • International shares: 23.5%
  • Direct property: 6%
  • Infrastructure: 11%
  • Private equity: 1.5%
  • Credit: 7%
  • Fixed interest: 20%
  • Cash: 13.5%
9.46% p.a.
Stable
  • < 5 years: Medium to high
  • 5-20 years: Medium
  • >20 years: Low to medium
  • Australian shares: 10%
  • International shares: 13.5%
  • Direct property: 6%
  • Infrastructure: 11%
  • Credit: 7%
  • Fixed interest: 27.5%
  • Cash: 25%
7.39% p.a.

*Asset allocation figures correct as of September 2017. These figures may have changed slightly since this time.

Option 2: DIY Mix

These do-it-yourself options are single asset class portfolios that are managed by AustralianSuper. You decide how much you want to invest in each of the options listed in the table below:

Asset AllocationRisk levelPast 5-year performance
Australian sharesInvests in an extensive range of ASX-listed companies
and aims to deliver strong long-term capital growth
  • < 5 years: Very high
  • 5-20 years: Medium to high
  • > 20 years: Medium
12.25% p.a.
International sharesInvests in companies listed on securities exchanges around
the world and aims to deliver strong long-term capital growth
  • < 5 years: Very high
  • 5-20 years: Medium to high
  • > 20 years: Medium
15.60% p.a.
PropertyThis option invests your balance in Australian and overseas
properties, including shopping centres and office buildings. The aim is to deliver strong medium- to long-term growth
  • < 5 years: Medium to high
  • 5-20 years: Medium
  • > 20 years: Low to medium
8.56% p.a.
Diversified fixed interestProvides capital stability by investing your balance in Australian
and international bonds and loans
  • < 5 years: Medium
  • 5-20 years: Medium to high
  • > 20 years: Medium to high
5.33% p.a.
CashDesigned to provide stable returns, this option invests your
balance in short-term money market securities and short-term bonds
  • < 5 years: Very low
  • 5-20 years: Medium to high
  • > 20 years: Very high
2.47% p.a.

* Investment returns are not guaranteed. Performance figures correct as of 30 June 2017. Past performance is not an indicator of future performance.

Option 3: Member Direct

This is AustralianSuper’s self-managed investment option. Designed for those who want a high level of control over where their super is invested, Member Direct allows you to invest in:

  • The S&P/ASX 300 Index
  • Exchange Traded Funds (ETFs)
  • Term deposits

You can manage your investments from an online platform, and super members need at least $10,000 to open an account. If you’re a retirement income member, the minimum account balance is $50,000.

Fees

  • Admin fee: There is an annual admin fee of $91.76 which is charged regardless of your balance.
  • Investment fee: If you choose an AustralianSuper PreMixed option or DIY Mix option, you'll also be charged an investment fee as an annual percentage of your balance. The annual investment fees are outlined in the table below.
Investment optionTotal fees
High Growth0.81%
Balanced0.75%
Socially Aware0.74%
Indexed Diversified0.22%
Conservative Balanced0.66%
Stable0.46%
Australian Shares0.36%
International Shares0.79%
Property0.80%
Diversified Fixed Interest0.49%
Cash0.05%

*These are the investment fees for each option for the year ended 30 June 2017. Actual fees are determined in arrears and will vary from year to year.

If you choose the Member Direct option, there are no set-up fees charged. However, a $395 portfolio administration fee is charged each year and is deducted from your account monthly. Brokerage fees apply when you trade in shares and ETFS.

Insurance

As part of being a member of AustralianSuper, you can access the following types of insurance cover through your super:

  • Income protection cover. This pays a monthly benefit for up to 2 years if you’re unable to work due to illness or injury, while you can also apply for extended cover up to the age of 65.
  • Total and permanent disablement cover. This type of cover provides a lump sum payment if you become totally and permanently disabled and can no longer work.
  • Death cover. This policy provides a lump sum payment when you die, allowing you to provide for your loved ones and help them repay debts.

Pros and cons

Pros

  • Wide range of investment options. AustralianSuper offers a broad range of investment options so you can tailor your super to meet your retirement goals.
  • Member Direct. If you want to take greater control over your super, the Member Direct option offers a convenient and easy way to do so.
  • Investment performance. While past performance is not a reliable indicator of future results, AustralianSuper’s investment options have regularly outperformed the relevant benchmarks over the past 10 years.
  • Easy fee structure. The fee structure is easy to understand.

Cons

  • Fees apply. Investment management fees apply, so make sure to compare AustralianSuper’s fees with those charged by other funds.

How do I apply?

If you’d like to join AustralianSuper, click the green ‘Go to Site button’ on this page. You’ll be taken to the AustralianSuper website where you can complete an online application in around 15 minutes. You’ll need to provide:

  • Your personal details, including your name, address, date of birth and contact information
  • Your Tax File Number (you do not have to give your super fund your TFN but if your fund doesn’t have your TFN it won’t be able to accept certain types of contributions from you and your benefit payments may be taxed at a higher rate than would otherwise apply)
  • Details of your employer

Once you’ve completed the application you will immediately receive your member number. A confirmation email will also be sent to you, and your membership application will be processed once you make the first contribution into your account. Your account and any insurance you have chosen will also become active once this first contribution has been received.

A welcome pack, which includes your AustralianSuper online account details, will then be mailed to you.

If you’re searching for a super fund to help you save for retirement, AustralianSuper is worth a closer look. Compare its features, fees and investment options with those of other funds before deciding whether it’s right for you.

DISCLAIMER: This article may contain general advice. You should consider your own personal circumstances before deciding if a superannuation product is right for you. Superannuation is a long term investment and past performance is not indicative of future performance.

Shahedul Islam

Shahedul is the publishing assistant for finder.com.au. He's Internet savvy and loves to learn new things about finance and technology. He spends most of his time learning about the wonderful world of the internet.

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2 Responses

  1. Default Gravatar
    JOHNJanuary 19, 2018

    When you retire does your holiday & long service leave effect your
    application for pension at the moment I have 36 weeks.

    • finder Customer Care
      JonathanFebruary 22, 2018Staff

      Hi John, thanks for your inquiry.

      According to 4.3.3.30 Employment Income for Pensioners of Age Pension Age pre-20/09/2009
      Summary, “If a pensioner receives paid leave, the money received IS assessed as income under the normal income test.” Therefore holidays/ long service leave should not affect your pension.

      Thanks.

      Jonathan

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