Each year we assess our performance as a fund. Based on the results of this assessment we determine whether we are promoting the financial interests of our members. Separate determinations are made for each product we offer.

NGS offering

NGS Super members can invest in:

  • MySuper: In the Diversified (MySuper) investment option within the NGS Super Accumulation product
  • 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 2023

Our performance assessment for the year ending 30 June 2023 is outlined below. 

MySuper determination

The Trustee has determined that NGS Super is promoting the financial interests of the Fund’s beneficiaries in relation to the outcomes of the MySuper product. Furthermore, it determined that:

  • Members are not being disadvantaged by the scale of the Trustees business operations.
  • 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 Trustee has determined that NGS Super is promoting the financial interests of the Fund’s beneficiaries in relation to the outcomes of the choice product. Furthermore, it determined that:

  • Members are not being disadvantaged by the scale of the Trustees business operations.
  • 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).1
  • The insurance fees charged do not inappropriately erode the retirement incomes of members (Accumulation Account only).1

Annual determination: 30 June 2023

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 metrics for our assessment of the Diversified (MySuper) investment option are prescribed by the Australian Prudential Regulation Authority (APRA). We have assessed our performance against our strategic objectives and member outcomes targets and compared ourselves against other Australian Funds using APRA data.2

For Choice, we have used the data from SuperRatings3 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 returns

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

We have assessed our performance against our strategic objectives and member outcomes targets and compared ourselves to peer groups using APRA and SuperRatings data. The following assessment factors have been used: 

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). Furthermore, we believe sound financial advice empowers members to make decisions and take actions 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

As part of the broader member product offering, the Board concludes that the options, benefits and facilities offered by the Fund support the determination that the Fund promotes the financial interests of the beneficiaries.

Investment strategy

Around 50% of NGS Super’s members are in the age range of 40 to 60, and hence the Diversified MySuper option is designed to provide exposure to growth (target CPI + 3%) over the medium to long term whilst also providing a good amount of capital preservation qualities (Standard Risk Measure of 3.5). The “all weather” properties of the option help members to grow their retirement savings over time, however, reduce the sequencing risk associated with large market drawdowns.

The Fund also provides a full and diversified suite of investment options including a range of pre-mixed options to meet different risk preferences, and asset class building blocks for members wishing to tailor their options further.

As part of the broader member product offering, the Board concludes that the Fund’s investment strategy supports the determination that the products promote the financial interests of the beneficiaries.

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), Total and Permanent Disability (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.

At $14.6 billion in net assets, NGS Super has been able to achieve benefits for members which are not available to members of smaller funds, whilst also being competitive with larger funds. In recent years, benefits arising from scale may be observed in:

  • the maintenance of administration fees whilst even large funds have been increasing fees
  • administration cost reductions achieved, partially resulting from increased membership
  • an increase in co-investment opportunities and
  • the ability to hire and retain experienced staff and maintain an appropriate remuneration level resulting in low staff turnover.

As part of the broader member product offering, the Board concludes that the Fund’s scale supports the determination that the products promote the financial interests of the beneficiaries.

NGS Super maintains a competitive operating expense ratio at 0.3% of net assets, aligning to the median for industry funds and all funds. The Funds operating expenses per member ($379) in 2023 were materially higher than the median of all funds ($285). While the Funds operating expenses per member were marginally higher in 2023, it is noted that a proper comparison cannot be made due to the payment of a once-off Trustee fee incorporated in operating expense. Excluding this fee, the Funds operating expenses per member in 2022 totalled to $331. Thus, the Funds current operating expenses per member are 14.5% higher (excluding Trustee fee). 

NGS Super is a niche fund which aims for a high-touch service for members. It is expected that this will have a cost impact. NGS Super has initiated targeted strategies with the aim of continuing to produce scale benefits and contain operating costs per member. Positive member growth has been realised as a result of the Fund’s activities, which should result in lower operating expenses per member.

As part of the broader member product offering, the Board concludes that the Fund’s operating costs support the determination that the products promote the financial interests of the beneficiaries.

Fee strategy

Fees for the Diversified (MySuper) option are above the median MySuper product, at $540 p.a. for a $50,000 balance (representative member) vs. $450 p.a. for the median MySuper product. The comparator median for MySuper fees has decreased due to higher fee Funds leaving the market and funds with lower fee structures continuing. In this way, the Funds fee strategy still remain appropriate.

As part of the broader member product offering, the Board concludes that the fee strategy supports the determination that the products promote the financial interests of the beneficiaries.

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 As insurance is only available in accumulation products, this assessment excludes consideration of Transition to Retirement and Income accounts.

2 The reference to APRA data relates to APRA Quarterly MySuper and/or APRA Annual Fund-Level Superannuation Statistics as at 30 June 2023.

3 SuperRatings data as of 30 June 2023. 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 APRA Quarterly MySuper data as at 30 June 2023 was used to compare MySuper products.

5 APRA Quarterly MySuper data as at 30 June 2023 was used to compare MySuper products.

6 Source: SuperRatings investment fee information to 30 June 2023.

7 Based on APRA Annual Fund-level Superannuation Statistics June 2023

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