Each year we are required1 to assess our performance and, based on the results of that assessment, make an annual determination that we are promoting the financial interests of our members. We must make a separate determination for each product we offer.

Determination for the period ending 30 June 2020

Our performance assessment for the year ending 30 June 2020 is outlined below.

MySuper product 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 MySuper product’s 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 the 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 product 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 Choice product’s 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 the 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.

Fund Snapshot 2020 (as at 30 June 2020)

fund snapshot

Annual determination: 30 June 2020

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.

NGS offering

Key performance areas

Measure and compare

The outcomes and metrics we have used in this section of our assessment for the Diversified (MySuper) investment option are prescribed by the Australian Prudential Regulation Authority (APRA).2 We have therefore used publicly available data published by APRA as the basis of our assessment. We have assessed our performance against our strategic objectives and member outcomes targets and compared ourselves to peer groups using APRA data.

We have used the data from SuperRatings3 as the basis of our assessment of our Choice products. Investment options were mapped to the most relevant SuperRatings Index, and return comparisons made 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

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 and their families 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

Observations

Based on our assessment we 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, 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
  • offers death (including terminal illness), TPD and income protection benefits as a default and
  • balances the cost of premiums with the levels of cover provided, while limiting cross subsidies between members.

Our needs-based insurance design has been awarded by Chant West4 with ‘Best Fund: Insurance’ in 2015, 2018, 2019 and 2020.

The Fund’s insurance arrangements are the same for both the MySuper and Choice products offered to accumulation account members. For our assessment of the Fund’s default insurance arrangements, we have:

  • considered whether the premiums paid by our members inappropriately erode retirement benefits and
  • compared our premiums against other MySuper products based on SuperRatings data.

Premiums

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, including in-workplace education and advice. The Fund aims to seek scale advantages without the loss of this value for members.

In addition to organic growth through positive net cashflow and investment returns, the Fund also seeks inorganic growth through mergers with funds in associated sectors. The Fund is currently planning on merging with Australian Catholic Superannuation.5

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 data.6 Our observations are provided in the table below where the metrics indicate the cost effectiveness of the Fund’s operations and includes Operating Expense Ratio, Operating Expenses per Member, and Operating Expenses per Active Member compared to other super funds.

  NGS Super Median -
All Funds
Median -
Industry Funds
Operating Expense Ratio 0.3% 0.4% 0.4%
Operating Expenses Per Member $273 $273 $245
Operating Expenses Per Active Member $311 $304 $302

In our assessment of scale and operating costs and whether the size of the Fund disadvantages our members, our results indicated 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 Legislative requirements as set out in Prudential Standard SPS 515 Strategic Planning and Member Outcomes and APRA Prudential Practice Guide SPG 516 – Business Performance Review.

2 The reference to APRA data relates to APRA Quarterly MySuper and/or APRA Yearly Fund-Level Superannuation Statistics as at 30 June 2020.

3 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..

4 For further information about the methodology used by Chant West, see chantwest.com.au.

5 Update: The Fund’s planned merger with Australian Catholic Superannuation will not proceed. Please read our NGS and ACS merger page for more detail.

6 Based on APRA Annual Fund-level Superannuation Statistics June 2020.

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