CFS FirstChoice Employer Super assessment

2025 Annual Outcomes Assessment

Colonial First State’s (CFS) FirstChoice Employer Super product (FCE) is offered to superannuation members by Avanteos Investments Limited (AIL) (the trustee). FCE includes a default MySuper Lifestage offer (MySuper), in addition to a large range of investment options for members to choose from (“Choice” options).

The Outcomes Assessment, for the year ending 30 June 2025, for the FCE MySuper and the FCE Choice offering concluded that overall the financial interests of members are being promoted. This document provides a summary of the key findings of the Outcomes Assessments.

The assessments were conducted using data and comparative benchmark reports to analyse the performance of FCE relative to defined criteria, such as investment performance rankings against other comparable products. The benchmarking data is obtained from sources, including the Australian Prudential Regulation Authority (APRA), independent industry research houses and in-house member records.

Fees and costs

We assessed whether the fees and costs paid by FCE members (administration fees, and total fees & costs) are competitive. In doing so, we used segmented member data to evaluate the fee and cost outcomes across the membership.

Analysis of APRA’s Comprehensive Product Performance Package indicated that ‘administration fees’ and ‘total fees and costs’ are below the median for FCE MySuper Lifestage members relative to industry peers.

An analysis using research house data showed that for FCE Choice options, the ‘total fees and costs’ for 69% of options are ‘at median or better’ when compared to industry peers.

Net returns

We assessed the level of investment returns delivered to members after the deduction of fees, costs and taxes.

FCE MySuper passed APRA’s annual YFYS performance test as at 30 June 2025. Further analysis of APRA’s Comprehensive Product Performance Package shows that 100% of FCE members received investment performance which was ‘at median or better’ when compared to industry peers; i.e. not rated ‘crimson’ or ‘red’ on APRA’s Heatmap across all assessed time horizons (3, 5, 7 and 10 years).

To further improve MySuper investment performance, during FY25, changes were made within;

Glidepath design;
Investment strategy, asset allocation, objectives and SRM;
Liquidity analysis and stress testing; and
Portfolio management, investment related risk management and implementation.

Using industry research house data, when compared to investment options with comparable risk profiles and asset classes, we determined that more than 88% of FCE Choice investment options achieved investment returns that were ‘at median or better’ over 1, 3, 5, 7 or 10 years.

Level of investment risk

We assessed whether the investment volatility of each investment option was appropriate for the risk profile of the investment.

Using APRA’s MySuper Statistics, we confirmed that the Standard Risk Measure (SRM) (which estimates the likely number of negative annual returns expected over any 20 year period) for each FCE MySuper LifeStage option was comparable to similar risk weighted MySuper options.

We also verified that the investment performance of each FCE MySuper Lifestage option was aligned to its stated SRM, having only 2 years of absolute negative return since inception (i.e. since 2014).

Using industry research house data, when compared to investment options with comparable risk profiles and asset classes, it was identified that more than 84% of FCE Choice investment options achieved an investment risk ranking that was ‘at median or better’ over 1, 3, 5, 7 or 10 years.

Options, benefits and facilities ☑

An independent research house assessed the quality of our member services. With Digital Engagement and Communication achieving the highest rating, the overall finding of the assessment was that member services are largely in line with the industry peers.

We also noted that our member services are consistently well used and valued by members.

Investment strategy ☑

We assessed the performance of each investment option having regard to the stated investment objective and investment ratings given by various research houses. We also considered the suitability of the composition of the investment menu for members.

Over the recommended investment objective horizon period for each of the Lifestage, more than 88% of FCE MySuper members have achieved or are reasonably expected to achieve investment outcomes which align with the stated investment objectives of the Lifestage glide-path.

The investment menu of FCE allows members to choose from an extensive range of investment options to build a diversified portfolio.

We determined that more than 84% of investment options have delivered upon (and are expected to continue to deliver upon) their stated investment objectives over their stated investment timeframe.

We also confirmed that more than 96% of ‘on menu’ investment options meet or exceed the ‘Investment Grade’ ratings by multiple research houses.

Insurance strategy ☑

AIL’s Annual Insurance Review for 2025, which was conducted by an independent research house, concluded that FCE Insurance terms and conditions are quite reasonable and competitive with other funds. Overall, the conditions are slightly more favourable than its competitors.

It was also assessed that the claim processing time for 74% of Death, 77% of TPD & 58% of IP insurance claims are better than APRA’s average processing time.

Insurance fees ☑

AIL’s Annual Insurance Review for 2025, found that across Death and TPD (Total and Permanent Disablement), Death Only and Income Protection, more than 66% of members (combined weighted average by member count) are paying insurance premiums that are ‘at median or better in comparison to the industry/peers.

It is estimated that the average member pays premiums which are 0.8% of their salary and 72% of members are paying premiums that are less than 1% of their salary.

Sustainability ☑

Scale is important as it allows AIL to meet its commitments and negotiate competitive arrangements for members. As at 30 June 2025, based on APRA’s Annual fund-level superannuation statistics, AIL was the 7th largest provider of superannuation in Australia with total super assets of approximately $131 billion for approximately 792k members.

As at 30 June 2025, FCE had superannuation assets of $17.8 billion and a membership of 183k members.

100% of FCE investment options held assets of more than $30m and do not have any imminent liquidity risk.

Operating costs ☑

As at 30 June 2025, based on APRA’s fund level data, AIL’s superannuation operating cost was ranked better than the median. AIL’s operating cost base has reduced in FY25; after the increase over the last few years. This was predominantly driven by lower spend or completion of certain strategic projects that will benefit members in the longer term.

Dividend payments made to our parent companies were in accordance with AIL’s Capital and Dividend Policy, which requires that the amount and timing of any dividend is consistent with AIL’s fiduciary duties and members’ best financial interests.

Basis of setting fees ☑

We confirmed the appropriateness of each category of fee and cost charged to members.

The fees and costs paid by FCE members were assessed as being sufficient to cover the costs of the product and that the manner in which fees and costs are charged to members is appropriate.

Product evaluation

We concluded that on balance the FCE MySuper Lifestages and FCE Choice offerings, both, are promoting the financial interests of members.

CFS FirstChoice Employer Super