Australian superannuation assets are now around AUD 3.5 trillion, and Morningstar recognises the importance of providing quality insights to investors and advisors. Morningstar has embarked on a significant data uplift to its universe of superannuation options. This data collection effort is ongoing, and gaps remain where superannuation funds have not disclosed data or data is not available (marked as “n/a” across the tables). In the absence of updated asset-allocation data, fund categorisation is challenging, and estimates may be required. Morningstar is committed to continually improving the quality of its data for its investors. If the data for the superannuation options of your fund are not appearing (or not accurate), please contact us.

Overview

In this quarter’s Morningstar Superannuation Survey, we looked at 291 options (including MySuper and Choice options, excluding Transition to Retirement options) across our superannuation multisector balanced, superannuation multisector growth, and superannuation multisector aggressive Morningstar Categories. Some of the largest options in Australia, by net assets, fall into these categories. We traversed the profit-for-member and for-profit landscapes. The Superannuation Survey focuses on fund performance, total fees (including investment and administration), and net assets.

Each quarter in 2023, a Super Survey Supplement will also be released. The supplement will provide additional insight into the superannuation industry and cover an array of topics. This quarter, we took a look at the liquidity profile of five large superannuation funds.

Retirement Is a Long-Term Game. Who Topped the Tables Over 3 and 5 Years as of 30 June 2023?

In the superannuation multisector balanced category, Hostplus Conservative Balanced topped the table over the three- and five-year time horizons. ART Retirement and ART Lifestyle Retirement fared well over these time frames. Vision Balanced Super performed strongly over the five-year time horizon.

In the superannuation multisector growth category over the three-year time frame, Hostplus SRI Balanced Super, ART Balanced, and ART Lifestyle Balanced took the top three spots. Over five years, Hostplus SRI Balanced Super topped the table, followed by Hesta Sustainable Growth and Care Sustainable Balanced.

In the superannuation multisector aggressive category over the three-year time frame, Perpetual Global Allocation Alpha performed very strongly, followed by Mine High Growth and Rest Shares. Over five years, UniSuper Sustainable High Growth led the way with Mine High Growth and Perpetual Global Allocation Alpha not far behind.

Largest Options—MySuper Options Lead the Way

Based on reported data, the largest options across the growth category were AustralianSuper Balanced, Rest Core, Hesta Balanced Growth, and ART Lifestyle Balanced. We are seeking to uplift our data collection of monthly funds under management data so we can improve our insights in this area.

Superannuation Multisector Growth Morningstar Category—Fees

Morningstar uses the total cost ratio (prospective) data point to assess the total fees and costs that are associated with managing and administering an investment product in Australia. This data point includes Investment management fees and costs; administration fees and costs; performance fee costs; and total annual dollar-based charges. It subtracts super OTC derivative costs (to the extent these are reported), and it does not include transaction and operational costs.

The average total cost ratio (prospective) came in around 0.9% for the superannuation multisector growth category. This was lower than last quarter because of the exclusion of the AIA options given the concern with data quality.