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FirstWrap Plus Super and Pension Service (Super)

 Each year, along with other superannuation fund Trustees, we're required to publish the results of an annual member outcomes assessment for each of our products. This assessment shows how we’ve promoted the financial interests of our members over the prior financial year.

MEMBER OUTCOMES ASSESSMENT – APPROACH

Each year we set, and then assess ourselves against a number of key focus areas we believe are important in providing a high quality superannuation fund. We’ve completed a three-step evaluation process to assess our performance against the key focus areas:

Product comparison
We’ve compared FirstWrap Plus Super and Pension Service (Super) against similar superannuation funds to show whether the product is competitive with similar products. We completed this comparison in the areas of fees, investment performance return and investment risk.

Product assessment
We’ve assessed key areas of FirstWrap Plus Super and Pension Service (Super) that are related to member outcomes to determine whether we’re promoting the financial interests of our members. A summary of the results is completed at the product level.

Overall product determination
Finally, we’ve made an overall determination on whether we are promoting the financial interests of our members FirstWrap Plus Super and Pension Service (Super). This assessment is based on the matters assessed and also factors in anything relevant within the business or externally.

OVERALL PRODUCT DETERMINATION (FOR THE YEAR ENDED 30 JUNE 2020)

 

The assessment of the key outcomes of the product demonstrates that we are actively promoting the financial interests of our members in FirstWrap Plus Super and Pension Service (Super).

PRODUCT COMPARISON

Fees and costs
We aim to provide competitive fees for members and regularly review our fees to improve the financial outcomes for our members. As at 30 June 2020, the fees and costs for FirstWrap Plus Super and Pension Service (Super) are lower than more than half (56%) of similar superannuation products. The actual fees and costs for FirstWrap Plus Super and Pension Service (Super) will depend on the investment options chosen by the member, together with their adviser.

Investment return
A wide range of investment options are available in this product, including managed accounts, managed funds, ASX listed securities, term deposits and cash. So, overall investment returns for FirstWrap Plus Super and Pension Service (Super) will depend on the investment options chosen by the member. The performance for each investment option indicates that overall, the investment options have performed above the investment return median result for comparable investments. On average, the return for each investment option within FirstWrap Plus Super and Pension Service (Super) ranked better than almost two thirds (60%) of other investments in the same category.

Investment risk
A wide range of investment options are available in this product, including managed accounts, managed funds, ASX listed securities, term deposits and cash. So, risk-adjusted return for FirstWrap Plus Super and Pension Service (Super) depends on the investment options chosen by the member. On average, the risk-adjusted return for the investment options within FirstWrap Plus Super and Pension Service (Super) ranked better than almost two-thirds (60%) of other investments in the same category. Overall, the riskadjusted return results indicate that the investment options have performed better than the median ranking for comparable investments.

PRODUCT ASSESSMENT

This assessment evaluates the performance of FirstWrap Plus Super and Pension Service (Super) in delivering outcomes for our members. Each of these areas are assessed by comparing a range of metrics against relevant benchmarks.

KEY AREA
Fees and costs
Despite the median administration fee paid being higher than the benchmark, overall, the total product fees (including administration and investment fees) and advice fees charged were lower than their specified benchmarks.
Options, benefits and facilities Key options, benefits and facilities, including digital services, contact centre and communications, are available to members, mostly accessed through a financial adviser. There is a wide range of investment options and asset classes available to our members for investment.
Investment strategy The majority (85%) of the investment options available within the products have received favourable ratings by approved research houses and approximately half (46%) of investment options exceeded their disclosed benchmark. This was comparable to similar superannuation funds.
Insurance strategy Insurance terms and conditions, premium scenarios and claim times, rated favourably overall to industry benchmarks and the median of peers.
Insurance fees On average, our members’ insurance premiums, were considered affordable for most members using the industry benchmark, which is based on standards to help with greater understanding, accountability and consistency within insurance available within super. All insurance cover in this product is underwritten and chosen by the member, rather than by default, in which means that premiums set by the insurer is based on individual demographic and health circumstances.
Scale and sustainability FirstWrap Plus Super and Pension Service (Super) benefits from Colonial First State’s broader scale of the fund.
Operating costs Overall the Trustee administration expenses were favourable to plan for the year to 30 June 2020.

We will continue to improve member outcomes by understanding members’ needs, enhancing the product offering and remaining focused on delivering for members’ financial interests.