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Member Outcomes Assessment

Each year Club Plus Super assesses the outcomes we have provided to our members through the Member Outcomes Assessment. As part of our business planning process we determine if and how these outcomes can be further improved.

Club Plus Super year in review – financial year ended 30 June 2020

The review period of the 12 months to 30 June 2020 saw the very significant effect of the COVID-19 pandemic in the second half of the year. We acknowledge all those who were impacted professionally and/or personally by this devastating event.

What began as volatile investment markets and concern over a health crisis quickly turned into a global pandemic. Through this period our focus ranged from actively managing investments and ensuring early release claims were paid swiftly to supporting massive spikes in enquiries from both members and employers.

We were very pleased to see the work from our team appreciated by members through very strong member satisfaction and net promotor scores.

Member statisfaction
NPS results

In the following summary the Trustee (we) of the Club Plus Superannuation Fund (the Fund) presents the Fund’s performance against peers[1] where data is available for the financial year ended 30 June 2020.

Highlights of the Fund’s performance

We measure performance against six key areas:

  1.  product design and operation
  2.  investment strategy and performance
  3. insurance strategy
  4. scale
  5. operating costs and
  6. fees and costs.

We were very pleased to again be awarded the highest super fund rating from independent ratings agency SuperRatings for 2021.

SuperRatings awarded us their Platinum rating for the eleventh consecutive year[2]. In their words we are a best-value super fund. SuperRatings considers the following in determining best-value super funds across the board:

  • Competitive Investment performance
  • Competitive fees and charges
  • Comprehensive insurance cover
  • Helpful member education and services
  • Robust administration and governance

Our MySuper product continues to outperform its investment objectives. It also outperformed the SR50 MySuper Index over the 5 years to 30 June 2020[3].

While many funds have experienced insurance premium increases during recent years, we were able to reduce premiums from 1 January 2021 as a result of reducing cover for our short-term income protection product. Our ongoing focus is to ensure insurance premiums do not unnecessarily erode retirement savings while we continue to offer a high-quality insurance product and design that is appropriate for our members’ needs.

CPS member fees have not changed since 1 October 2017 however the investments made in enhancing our business over the past few years and our initiatives to enhance member communication (videos, digital initiatives such as digital onboarding etc) coupled with rapid legislative change has meant our operating costs have risen and our cost per member is currently above the median for all funds.

1. Product design and operations

Our strategy is built on a focus of continuing to strengthen our relationships with our members and employers, extending on those relationships to expand through our industry and also to pursue opportunities to grow the fund.

To achieve this we have taken steps over the past few years to strengthen the fund’s strategic planning, governance and risk management frameworks. We believe this will help ensure we continue to deliver the best possible financial outcomes for members well into the future.

As we continue to grow and evolve we have invested in employing staff who have a dedicated focus on improving the direct engagement with our members as well as the technical capability to ensure our products and service are as strong as possible. This has seen the ongoing development of our member experience, employer and business operations teams.

We draw on some of the leading external providers in the industry across investment management, asset consulting, administration, insurance and custody. This allows us to leverage the latest technology and expertise across global capabilities while also having the flexibility to choose what we believe is best for our members.

Our assessment is:

As at the 30 June 2020, our Net Member Benefit measure shows that overall our members are well served in the CPS Balanced Fund compared to other balanced funds according to ratings house SuperRatings.

Relative to peers we provide a level of products, services and facilities members rate well above the industry average[4] for the fees paid, for example:

  • overall satisfaction super increased 8% year-on-year (YOY). This was 17% above the industry average.
  • likelihood to recommend us to a friend or family member increased 5% YOY – 20% ahead of the industry average.

2. Investment strategy and performance

Our investment-related objectives are to:

  • Maintain an investment product suite appropriate to the membership profile of the Fund.
  • Ensure alignment within the member demographic profile, member demand and lifecycle need; and
  • Maintain best investment governance.

The Fund has six choice investment options as well as our default MySuper (Balanced Fund) option. We measure our performance for all investment options against set objectives and benchmarks. We also compare ourselves to peers using publicly available information such as APRA (Australian Prudential Regulation Authority) statistics.

Our results demonstrate the Fund’s investment strategy has been effective in delivering net benefits to members over the medium term. Our investment options generate returns which, in the main, exceed their objectives.

The Fund provides strong risk-adjusted net returns to help members achieve retirement adequacy and risk protection. To do this the Fund needs to provide competitive returns (net of investment fees).

Club Plus Super MySuper (Balanced) Fund returns over five years versus the industry average

Balance fund returns

Source: SuperRatings Pty Ltd fundamental Report, 30 June 2020.

Our assessment is:

As at the 30 June 2020, MySuper returns were well above the median and benchmark over the long-term 5 and 10-year periods however are slightly below the median over the short-term one-year period along with achieving its risk objective.

Relative to peers:

Top 10 investment performance March 2020 in Rainmaker’s Combined Risk-Adjusted Rank Score for three-year investment returns when risk is considered[5];

Winner of SuperRatings SR50 Cash Index award for Best Cash Return for the 2015-2020 period; and awarded the highest Platinum Rating for the 11th consecutive year from SuperRatings.

3. Insurance strategy and insurance fees

Our objective is to maintain an appropriate insurance offering that:

  • provides adequate and meaningful cover that is value for money; and
  • does not inappropriately erode retirement benefits of members.

To ensure that we have an appropriate insurance offering that covers the above factors we have adopted the principles of the Voluntary Insurance in Superannuation Code of Practice (VCoP).

Recent legislative changes to superannuation - Protecting Your Super (PYS) and Putting Member’s Interests First (PMIF) - as well as COVID-19 significantly impacted the insurance market. Many superannuation funds increased insurance premiums for members as a result. We reviewed our insurance offering with our insurer OnePath and external consultants and were able to reduce insurance premiums to members (as a result of reducing cover for our short-term income protection product). This ensures that we continue to offer appropriate cover without eroding retirement savings. The new lower-cost insurance cover for CPS members took effect from 1 January 2021.

Our assessment is:

As at the 30 June 2020, the strategic objective for insurance has been achieved.

Relative to peers:

Highest Platinum Rating for the 11th consecutive year from SuperRatings – the best-value super fund rating including comparative analysis of our insurance offering.

Insurance premiums decreased for members of Club Plus Super while many peer funds increased insurance costs to members.

4. Scale

Our objective is to expand the fund’s membership beyond the traditional industry base of the club industry and position the fund well for future growth. By doing this we aim to achieve the following:

  • Maintain sufficient investment and administrative scale to provide desired financial outcomes to members and that members continue to receive services at competitive rates;
  • Drive member growth through retaining our members as they change jobs and by refining their digital experience with the fund; and
  • Actively pursue inorganic growth opportunities.

Club Plus Super has more funds under management and more members than the median sized fund in the industry. We offer four products - MySuper, Industry, Personal and Pension divisions - none of which are unnecessarily complex or costly compared to the average super fund. We leverage efficiencies in managing these products by pooling assets across products. We also utilise the expertise of external investment managers to gain access to competitively priced investments. Additionally, we employ external service providers to leverage scale by pooling administration capabilities.

This strategy has demonstrated success through the long-term returns of each investment option. We have generally outperformed the median products in the applicable asset category.

Our assessment is:

As at the 30 June 2020, the Fund had sufficient scale and members were not disadvantaged. We have designed products specific to the characteristics of our membership profile. The products we offer our members are competitive in terms of investments, insurance, and fees against other comparable products.

Our most recent member satisfaction survey[6] results demonstrate members are very satisfied that our offering meets their needs and that their experiences when interacting with the Fund are positive.

5. Operating costs

Our objective is to achieve cost efficiency both to underpin the Fund’s competitive fee positioning and to provide net benefit to members. The aim is to have adequate scale to deliver a wide range of member benefits at relative low cost so that members receive value for money.

When compared to other superannuation funds the fund’s level of operating expenses is high relative to net assets (funds under management) but low relative to membership (number of members). Our operating expenses rose 2.9% during the period, below the industry median of 4.7%.

Our assessment is:

As at the 30 June 2020, our 2.9% increase in operating expenses was below the industry median of 4.7%

6. Fees and costs

We aim to maintain a fee structure where member services can be appropriately delivered without inappropriately eroding members balances. We aim to offer competitive administration and investment fees that reflect the costs of running the fund and delivering the best financial outcomes for members. In addition, the Fund aims to structure fees so that it does not lead to inappropriate outcomes or cross-subsidisation between members.

Our assessment is:

As at the 30 June 2020, costs were distributed fairly, as demonstrated by the fact that the same administration fee is charged to all members of the fund.

The Cost Per Member (CPM) is below the median fund level.

Overall, the Fund’s operating cost metrics were competitive relative to industry peers.

Determination for the period ending 30 June 2020:

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 services 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 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 services 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.

[1] Source: SuperRatings Annual Benchmark Report for Club Plus Super 2021

[2] The rating is issued by SuperRatings Pty Ltd ABN 95 100 192 283 AFSL 311880 (SuperRatings). Ratings are general advice only and have been prepared without taking account of your objectives, financial situation or needs. Consider your personal circumstances, read the product disclosure statement and seek independent financial advice before investing. The rating is not a recommendation to purchase, sell or hold any product. Past performance information is not indicative of future performance. Ratings are subject to change without notice and SuperRatings assumes no obligation to update. SuperRatings uses objective criteria and receives a fee for publishing awards. Visit superratings.com.au for ratings information and to access the full report. © 2021 SuperRatings. All rights reserved

[3] As defined by the SuperRatings SR50 MySuper index as at 30 June 2020

[4] Source: CoreData – Club Plus Super Member Satisfaction Survey 2020

[5] Source: Rainmaker MySuper/Default RMetrics table as at 31 March 2020

[6] Coredata Member Satisfaction Survey 2020

Issued by Club Plus Superannuation Pty Limited, ABN 26 003 217 990, AFSL 245362, the Trustee of the Club Plus Superannuation Scheme ABN 95 275 115 088. Club Plus Super is not licenced to provide general financial product advice except if it relates to our products. This is general information only and does not take into account your personal objectives, financial situation or needs. Prior to acting on any information in this document you should read the appropriate Product Disclosure Statement for any product you are considering, (available at clubplussuper.com.au or by calling 1800 680 627) and seek independent financial advice around this if you are unsure.