2019 has been a year full of achievements for First State Super that have delivered real results for our members, both in their super balance and ‘beyond super’. And with our merger with VicSuper set to take place on 1 July 2020, next year is set to be even better for our members.
First State Super’s purpose is “to be a force for good in super and retirement, shaping the best outcomes for our members, their families and communities and our industry”.
While delivering the best possible investment returns for our members, delivering benefits to the communities that our members live, work and retire in.
This year has seen us recognised by multiple organisations for our investment strategies and returns, including as a being identified as a responsible investment leader by the Responsible Investment Association Australasia (RIAA), winning a prestigious PRI Award for our ESG integration strategy and, most recently, our MySuper product was recognised as one of the leaders as part of the APRA MySuper Product Heatmap initiative.
RIAA’s RI Super Study also showed that responsible investing delivered better returns for members. The study showed that on average the 13 members of the RI leaders list (which First State Super was a part of) outperformed non-leader super funds by delivering returns over 1% higher across both 1, 3 and 5-year time frames.
We believe this is an important finding as it demonstrates what we already know; that we can (and are) do good for our members and all Australians without sacrificing member returns.
In light of that, we’d like to highlight some of the great investments that are making returns for our members while doing good in their communities.
This year we’ve invested nearly $160million in key worker affordable housing in areas in Sydney like Waterloo, Epping, Hurstville, Northmead and in Moonee Ponds in Melbourne, to help those who work in the healthcare, education, law enforcement and emergency services sectors to find affordable rentals closer to their work and families.
Through these investments we are providing affordable rentals to these self-less members of our community at 80% of the market rate, while still delivering the best possible returns to members.
“When I talk to members and our associations and ask, ‘what’s the number one thing you care about?’ It’s often affordable housing that gets raised. Making housing more affordable is so important for our key workers, especially in our large cities like Sydney and Melbourne.”
- Deanne Stewart, CEO
As well as affordable housing, we have invested in multiple infrastructure projects in our members’ communities, including renewable energy in South Australia, the building of the Police Air headquarters at Bankstown Airport, and a whole lot more. You can see a great number of examples on what we’re investing in here.
We are also looking at ways we can do more to make our super products as competitive as possible. Part of this is constantly working to lower our fees to ensure our members get the best result from their super.
As of December 1, we made an 11-basis point cut to the investment fee in our balanced growth lifecycle MySuper strategy for employer sponsored members, dropping from 0.76% to 0.65% and as we increase our size and scale through initiatives such as our merger with VicSuper, we can deliver reduced fees over time.
2019 has been a busy and successful year for First State Super. We’re looking forward to delivering great returns for members in 2020 while continuing to be a force for good in their communities.
Join a super fund with low-fees^2 and strong long-term returns^1
Super investment performance for the period ending 31 March 2019 (Growth/balanced growth option). Past performance is not an indicator of future performance. ↩
Our administration fee is $1 per week plus 0.15% p.a. of your account balance (capped at $750 per year). The industry medians are $1.50 per week and 0.23% p.a. Source: SuperRatings Benchmark Report 2019. The total annual fee for our Growth option is 1.10% p.a., the industry average is 1.50% p.a., Source: Chant West Super Fund Fee Survey, December 2018, based on a $50,000 balance in a Growth option. ↩