Each year we assess our performance and, based on the results of that assessment, determine whether we are promoting the financial interests of our members. We make a separate determination for each product we offer.
NGS offering
NGS Super members can invest in:
- MySuper: within the NGS Super Accumulation product within the Diversified (MySuper) investment option
- Choice: within the:
- NGS Super Accumulation product (11 investment options)
- NGS Super Transition to Retirement product (11 investment options)
- NGS Super Income Account product (12 investment options).
The Accumulation and Income Account products also include the NGS Self-Managed Direct Investment Option.
Determination for the period ending 30 June 2022
Our performance assessment for the year ending 30 June 2022 is outlined below.
MySuper determination
- The financial interests of members are being promoted by the Trustee.
- Because of the scale of the Trustee’s business operations, members are not being disadvantaged.
- The operating costs are not inappropriately affecting the financial interests of members.
- The basis for the setting of fees is appropriate for members.
- The options, benefits and facilities offered are appropriate for members.
- The investment strategy, including the level of investment risk and return target, is appropriate for members.
- The insurance strategy is appropriate for members.
- The insurance fees charged do not inappropriately erode the retirement incomes of members.
Choice determination
- The financial interests of members are being promoted by the Trustee.
- Because of the scale of the Trustee’s business operations, members are not being disadvantaged.
- The operating costs are not inappropriately affecting the financial interests of members.
- The basis for the setting of fees is appropriate for members.
- The options, benefits and facilities offered are appropriate for members.
- The investment strategy, including the level of investment risk and return target, is appropriate for members.
- The insurance strategy is appropriate for members (Accumulation Account only).
- The insurance fees charged do not inappropriately erode the retirement incomes of members (Accumulation Account only).
Annual determination: 30 June 2022
Our strategic objectives have been designed to promote positive member outcomes and support the sound and prudent management of our business operations. The Fund follows sound risk and governance practices, aiming to ensure that member outcomes are not jeopardised by incidents of loss, reputational damage, or inappropriate decision-making. The assessment of our performance is based on these guiding principles.
Key performance areas
Measure and compare products
The outcomes and metrics for our assessment of the Diversified (MySuper) investment option are prescribed by the Australian Prudential Regulation Authority (APRA).1 We have assessed our performance against our strategic objectives and member outcomes targets and compared ourselves to peer groups using APRA data.
For Choice, we have used the data from SuperRatings2 as the basis for our assessment. Investment options were mapped to the most relevant SuperRatings Index, and we compared our returns over 1, 3, 5 and 10-year periods against all options in the relevant index.
Investment performance
Our objective is to provide investment options to meet a range of member needs, while ensuring that no option has excessive costs or performs inadequately over the longer term.
Diversified (MySuper) investment option
Choice investment options
Level of investment risk
We design our investment menu so that members have diversification across asset classes and risk/return profiles. Our options are designed to perform well in the medium to long term, with lower volatility of outcomes in the short term.
Diversified (MySuper) investment option
Choice investment options
Fees and costs
Our objectives are to provide products and services at a fair cost, and at a fee structure that is sustainable to ensure we can continue to deliver appropriate member services.
Diversified (MySuper) investment option
Choice investment options
Direct Investment Option
Product appropriateness for our membership
In this section we have assessed our performance against our strategic objectives and member outcomes targets and compared ourselves to peer groups using APRA and SuperRatings data.
Options, benefits and facilities
Our objective is to ensure that products and services offered are tailored to the Fund’s specific membership. Therefore, NGS Super aims to offer products that provide options, benefits and facilities reflecting the needs of this specific membership, which are integrated and simple to understand and navigate.
We design our products and services to enable our members to get the most from what we offer by ensuring easy access to the information and help they need, at the right time, via their most convenient channel (digital, phone-based and face-to-face). We also believe sound financial advice empowers members to make decisions that lead to better retirement outcomes.
The options, benefits and facilities offered by the Fund are the same for both our MySuper and Choice products.
Key features
We have assessed our product options, features and facilities and believe that we have met our objective, which is to provide products that have options, benefits and facilities that reflect the needs of the Fund’s specific membership.
Insurance strategy and premiums
Our objectives are to provide group death, total and permanent disability (TPD) and income protection cover which is appropriate to the needs of our membership, and to offer sustainable premium rates. We strive to be at the forefront of fair, helpful and timely service.
The Fund’s insurance strategy is based on providing an insurance design that:
- reflects the insurance needs and demographics of different groups of members
- aligns to the needs of the target membership, while offering the flexibility for members to tailor cover to their specific needs
- offers death (including terminal illness), TPD and income protection (IP) benefits as a default, and
- balances the cost of premiums with the levels of cover provided, while limiting cross-subsidies between members.
The Fund’s insurance arrangements are the same for both MySuper and Choice accumulation members. For our assessment of the Fund’s default insurance arrangements, we have:
- compared our premiums against other MySuper products based on SuperRatings data; and
- considered whether the premiums paid by our members inappropriately erode retirement benefits.
Premiums comparison for MySuper option
Premiums do not inappropriately erode members' retirement benefits
Scale and operating costs
Our objectives are to seek opportunities to obtain scale advantages through both organic and inorganic growth. We also aim to conduct our operations efficiently, and in a manner which maintains operating costs at a reasonable level for the services provided to members.
The Fund pursues scale only to the extent that it provides additional value for members. This value may be in the form of cost efficiencies, investment opportunities (to enhance returns), or the ability to provide enhanced products or services. We are a fund that provides services which are tailored to our target membership.
The Fund aims to conduct its operations efficiently, and in a manner which maintains operating costs at a reasonable level for the services provided to members. In assessing our performance, we used APRA data5. A summary is provided in the following table.
NGS Super | Median - All Funds |
Median - Industry Funds |
|
---|---|---|---|
Operating Expense Ratio | 0.3% | 0.3% | 0.3% |
Operating Expenses Per Member6 | $393 | $316 | $326 |
In our assessment of scale and operating costs, results indicate that the Fund has sufficient scale such that members are not disadvantaged.
Investment performance
Our performance summaries show the net return after investment fees, tax and the asset-based fee. You can access our latest performance summaries here.
1 The reference to APRA data relates to APRA Quarterly MySuper and/or APRA Annual Fund-Level Superannuation Statistics as at 30 June 2022.
2 SuperRatings specialises in ratings, research and consulting, providing the superannuation industry with the tools and intelligence required to build value for their members and create a stronger super industry that benefits all Australians. For more information go to www.superratings.com.au.
3 APRA Quarterly MySuper data as at 30 June 2022 was used to compare MySuper products.
4 The RetirePlus option commenced less than 5 years ago. Returns for the option exceeded the relevant SuperRatings index over 1 and 3 year periods to 30 June 2022.
5 Based on APRA Annual Fund-level Superannuation Statistics June 2022.
6 Operating expenses per member in 2022 were artificially high due to the once-off payment of the Trustee Fee. Without this fee, operating expenses per member were $331. Operating expenses for comparator funds are likely to also be artificially high, except the amount cannot be quantified.