CFS FirstChoice Wholesale Personal Super

We assessed whether the fees and costs paid by FCWS members (administration fees, and total fees & costs) are competitive. In doing so, we used segmented member data to evaluate the fee and cost outcomes across the membership. 

An analysis conducted against comparable products and super funds that have the similar APRA attributes indicated that the ‘administration fees’ and ‘total fees and costs’ for 100% of FCWS investment options were “at median or better”. 

We assessed the level of investment returns delivered to members after the deduction of fees, costs and taxes. 

Using industry research house data, when compared to investment options with comparable risk profiles and asset classes, we determined that more than 89% of FCWS investment options achieved investment returns that were ‘at median or better’ over 1, 3, 5 or 7 years. 

Using industry research house data, when compared to investment options with comparable risk profiles and asset classes, it was identified that more than 88% of FCWS investment options achieved an investment risk ranking that were ‘at median or better’ over 1, 3, 5 or 7 years. 

An independent research house assessed the quality of our member services. With Digital Engagement and Communication achieving the highest rating, the overall finding of the assessment was that member services are largely in line with the industry peers.  

We assessed the performance of each investment option, having regard to the stated investment objective and investment ratings given by various research houses. We also considered the suitability of the composition of the investment menu for members. 

The investment menu of FCWS is large compared to other master trust super funds, allowing members an extensive range of investment options to select and build a diversified portfolio. 

We determined that more than 93% of investment options delivered upon (and are expected to continue to deliver upon) their stated investment objectives over their stated investment timeframe. It was identified that more than 85% of ‘on-menu’ investment options meets or exceeds the ‘Investment Grade’ ratings by various research houses.  

To evaluate the appropriateness of the insurance strategy for FCWS, we used AIL’s Annual Insurance Review for 2024 which was conducted by an independent research house. The report concluded that overall the FCWS insurance offer is providing value for money and appropriately supports wealth protection needs of the members.  

The Terms and Conditions of the FCWS insurance offer were benchmarked against comparable insurance plans and found to be quite reasonable and competitive with other funds. 

AIL’s Annual Insurance Review for 2024, found that more than 80% of FCWS members for paying Death, Total and Permanent Disability and Income Protection Cover, that is at median or cheaper in comparison to the industry/peers. 

Scale is important as it allows AIL to meet its commitments and negotiate competitive arrangements for members. As at 30 June 2024, based on APRA’s Annual fund-level superannuation statistics, AIL was the 8th largest provider of superannuation in Australia with total super assets of approximately $115 billion for approximately 783k members.  

As at 30 June 2024, FCWS had superannuation assets of $41.3 billion and a membership of 236k members. 

More than 91% of FCWS investment options held assets of more than $30m and do not have any imminent liquidity risk. 

As at 30 June 2024, based on APRA’s fund level data, AIL’s superannuation operating cost ratio was ranked among the lowest in the industry (1st quintile). AIL’s operating costs have increased over the last few years due to regulatory  compliance and aging infrastructure costs. However, a number of projects are underway to further automate and streamline our processes, and improve our technology platforms, which are expected to stabilise AIL’s operating costs in the longer term. 

Dividend payments that were made to our parent companies in accordance with AIL’s Capital and Dividend Policy, which requires that the amount and timing of any dividend is consistent with AIL’s fiduciary duties and members’ best financial interests. 

We confirmed the appropriateness of each category of fee and cost charged to members.  

The fees and costs paid by FCWS members were assessed as being sufficient to cover the costs of the product and that the manner in which fees and costs are charged to members is appropriate.