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:
We’ve compared FirstWrap Super and Pension Service (Super) against similar superannuation funds for fees and costs, investment performance return and investment risk to show whether the product is competitive with these similar products.
We’ve determined whether the financial interests of members are being promoted by assessing key areas that relate to the member outcomes. A summary of the results is completed at the product level.
Overall product determination
Finally, we’ve made an overall determination on whether FirstWrap Super and Pension Service (Super) has performed well against similar funds and whether we are promoting members’ financial interests. This assessment is based on the matters assessed and also factors in anything relevant within the business or externally.
Fees and costs
The fees and costs for FirstWrap Super and Pension Service (Super) were found to be competitive with similar superannuation products. Overall fees and costs for FirstWrap Super and Pension Service (Super) will depend on the investment options chosen by the member, together with their adviser.
A wide range of investment options are available in this product, including managed funds, ASX listed securities, term deposits and cash. So, overall investment returns for FirstWrap 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 Super and Pension Service (Super) ranked better than approximately two-thirds (59%) of other investments in the same category.
A wide range of investment options are available in this product, including managed funds, ASX listed securities, term deposits and cash. So, risk-adjusted return for FirstWrap 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 Super and Pension Service (Super) ranked better than approximately two-thirds (59%) of other investments in the same category.
Overall the risk-adjusted return results indicate that the investment options have performed above the median ranking.
This assessment evaluates the performance of FirstWrap Plus Super and Pension Service (Pension) in delivering outcomes for our members. Each of these areas are assessed by comparing a range of metrics against relevant benchmarks.
|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 terms and conditions, premium scenarios and claim times, rated favourably overall to industry benchmarks and the median of peers.
|Insurance fees||Our members’ insurance premiums, on average, were considered relatively high when compared to the industry benchmark for recommendation, which is based on standards to help with greater understanding, accountability and consistency within insurance available within super. However 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 benefits from Avanteos Investment Limited’s broader scale of the fund. The product has more rollovers out, than in, which is expected, due to the product being closed to new members.
|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.
Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) is the issuer of the FirstWrap super and pension products from the Avanteos Superannuation Trust ABN 38 876 896 681. AIL also issues interests and operates investments under FirstWrap. AIL is owned ultimately by Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 (the Bank). The Bank and its subsidiaries do not guarantee the performance of AIL products or the repayment of capital by AIL. This document may include general advice but does not take into account your individual objectives, financial situation or needs. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully, assess whether the information is appropriate for you, and consider talking to a financial adviser before making an investment decision. The PDS and FSG can be obtained from firstwrap.com.au or by calling your adviser.