MySuper Report Sept 2015 Highlights MySuper products now represent $433 billion in assets, or around one third of all APRA regulated funds. Not for profit (NFP) funds continue to dominate in terms of assets with over 90% of the market. Two thirds of NFP MySuper assets are in single strategy products while two thirds of retail MySuper assets are in lifecycle products. The average net investment return for single investment strategy MySuper products in the Sep quarter was -1.8% resulting in the rolling 12 month return dropping to 5.4% from 8.8% at end June 2015. The average net investment return for lifecycle products was -1.5%, however performance varies between age cohorts with high growth lifestages for members under 30 years of age averaging –2.3% and more conservative lifestages for members aged 65 or older averaging –0.3%. This Rainmaker age cohort framework illustrates that for the 12 months to September 2015, lifestage products for younger age cohorts slightly outperformed the average single investment strategy MySuper while lifestage products for older age cohorts underperformed. MySuper single investment strategy products held an average of 50-60% in equities and 25% in cash and fixed interest. But products with lower APRA risk labels held up to 50% in cash and fixed interest. Top 10 MySuper products by assets NFP products Category $M Retail products Category $M 1 AustralianSuper MySuper Single Inv Strategy 63,920 BT Super for Life MySuper Lifecycle 5,595 2 First State Super MySuper Lifecycle Lifecycle 40,718 AMP MySuper No.2 Lifecycle 4,425 3 REST Super Single Inv Strategy 34,524 Mercer SmartPath Lifecycle 3,702 4 QSuper Lifetime Lifecycle 28,588 MLC MySuper Single Inv Strategy 2,739 5 Cbus MySuper Single Inv Strategy 27,255 Colonial First State FirstChoice Super Lifecycle 2,698 6 HESTA Single Inv Strategy 26,567 ANZ Smart Choice Super Lifecycle 2,609 7 Sunsuper for Life Lifecycle 21,943 Woolworths Group MySuper Single Inv Strategy 2,393 8 HOSTPLUS Single Inv Strategy 16,019 NAB Group Super MySuper Single Inv Strategy 1,804 9 UniSuper Single Inv Strategy 11,902 Plum MySuper Single Inv Strategy 1,398 10 Victorian Superannuation Fund Single Inv Strategy 8,427 Mercer WGSP MySuper Lifecycle 1,381 MySuper 12 month net investment return, Sep 2015 12% Range by age cohort - lifecycle products Avg - lifecycle products 10% Avg - single investment strategy funds 8% 6% 4% 2% 0% <30 yrs 30-39 yrs 40-49 yrs 50-59 yrs 60-64 yrs 65+ yrs Analysis provided in this report is produced by Rainmaker SelectingSuper using data provided by APRA. Page 1 Email: [email protected] Phone: +61 8234 7500 MySuper Report Sept 2015 MySuper Single Investment Strategy - Top 50 Performers Returns for MySuper funds with a single investment strategy, excluding large employer sponsored funds. APRA investment risk label is based on the calculated potential frequency of negative annual returns over 20yr period. Investment returns are net of all fees. Rank Rank Rank APRA invest Rolling 12 Sept 15 Fund/Product Sector Risk Label months 2014/15 Qtr MTAA Superannuation Fund Industry Medium to high 9.0% 1 11.6% 2 -0.8% 7 PSS Acc Plan MySuper Public Sector Medium to high 8.2% 2 12.2% 1 -0.5% 4 Statew ideSuper MySuper Industry High 8.2% 3 11.3% 4 -1.0% 10 UniSuper Industry High 8.0% 4 10.8% 6 -1.2% 16 Prime Super Industry Medium to high 7.5% 5 10.1% 14 -1.5% 28 BUSSQ MySuper Industry Medium 7.4% 6 9.6% 26 -0.2% 1 Rei Super Industry Medium to high 7.4% 7 10.5% 10 -1.3% 18 Max Super Fund Retail Medium to high 7.3% 8 11.5% 3 -2.5% 69 The Transport Industry Super Industry Medium to high 7.3% 9 9.6% 25 -0.5% 3 WA Local Government Super Public Sector Medium 7.2% 10 9.4% 28 -0.8% 5 CareSuper Industry Medium to high 7.1% 11 10.4% 11 -1.2% 15 EMPLUS MYSUPER Retail High 7.1% 12 10.3% 12 -2.0% 55 Tasplan MySuper Industry Medium 7.0% 13 9.7% 21 -1.2% 14 First Super MySuper Industry Medium 6.9% 14 9.4% 29 -0.9% 9 MyCatholicSuper Industry Medium to high 6.9% 15 9.7% 23 -0.8% 8 HOSTPLUS Industry High 6.7% 16 10.8% 5 -1.7% 37 IOOF MySuper Retail Medium to high 6.6% 17 9.9% 18 -1.4% 22 Cbus MySuper Industry Medium to high 6.5% 18 9.9% 19 -1.3% 17 AustralianSuper MySuper Industry High 6.5% 19 10.7% 7 -2.0% 57 GS & JBWere MySuper Product Corporate Very high 6.4% 20 10.7% 8 -1.8% 42 HESTA Industry Medium to high 6.3% 21 9.9% 17 -1.5% 23 Austsafe Super Industry High 6.1% 22 10.3% 13 -1.1% 12 legalsuper Industry Medium to high 6.0% 23 9.6% 24 -1.8% 40 Intrust MySuper Industry Medium to high 5.9% 24 10.0% 15 -1.9% 49 Victorian Superannuation Fund Public Sector Medium to high 5.6% 25 10.6% 9 -3.1% 78 Australian Ethical Retail Super Retail Medium to high 5.6% 26 8.9% 39 -1.3% 19 Vision MySuper Public Sector Medium to high 5.6% 27 8.8% 43 -1.6% 30 Equipsuper MySuper Industry Medium 5.6% 28 9.7% 22 -1.9% 51 MyEquitySuper Retail Medium to high 5.6% 29 9.8% 20 -2.7% 73 Media Super Industry Medium to high 5.5% 30 8.9% 40 -1.7% 35 Worsley Alumina Super Retail Medium to high 5.5% 31 9.2% 34 -1.7% 34 REST Super Industry Medium to high 5.4% 32 9.3% 32 -2.0% 58 BHP Billiton Super Retail Medium to high 5.4% 33 9.0% 36 -1.7% 39 Australian Catholic Super Industry Medium to high 5.3% 34 9.5% 27 -1.9% 53 Smartsave MySuper Retail Medium 5.2% 35 7.1% 71 -0.8% 6 MLC MySuper Retail Medium to high 5.2% 36 8.9% 38 -1.8% 45 Plum MySuper Retail Medium to high 5.1% 37 8.8% 42 -1.8% 41 Pitcher Retirement Plan MySuper Corporate Medium 5.1% 38 6.6% 76 -0.4% 2 Rio Tinto Fund MySuper Corporate High 5.1% 39 9.4% 31 -2.5% 68 Kinetic Superannuation Fund Industry High 5.1% 40 8.2% 60 -1.5% 27 BOC MySuper Corporate High 5.1% 41 8.8% 45 -1.6% 31 Russell Supersolution Master Trust Retail Medium to high 5.0% 42 9.9% 16 -2.9% 74 Club Plus Super MySuper Industry Medium to high 5.0% 43 8.0% 65 -1.6% 32 Mercy Super Corporate Medium 4.9% 44 8.2% 61 -1.5% 29 NGS Super Industry Medium to high 4.9% 45 8.7% 49 -1.4% 20 Flexible Super Active Balanced Retail Medium to high 4.9% 46 9.0% 35 -1.8% 47 Club MySuper Industry High 4.9% 47 8.5% 54 -1.7% 36 Energy Super Industry Medium to high 4.9% 48 9.3% 33 -1.9% 52 Toyota Australia Super Corporate Medium to high 4.9% 49 8.8% 41 -1.7% 38 AvSuper Grow th (MySuper) Public Sector Medium to high 4.9% 50 8.2% 59 -1.9% 54 Average - arithmetic 5.4% 8.9% -1.8% Average - asset w eighted 6.4% 10.1% -1.6% Industry 5.8% 9.1% -1.6% Corporate 4.7% 8.4% -2.1% Public Sector 5.8% 9.3% -1.6% Retail 5.1% 8.7% -2.0% Very high 6.4% 10.7% -1.8% High 5.4% 9.1% -1.9% Medium to high 5.5% 9.1% -1.8% Medium 5.3% 7.9% -1.2% Source: APRA statistics, Rainmaker research Rainmaker Information Page 2 MySuper Report Sept 2015 Lifecycle MySuper - Top 5 Products by Age Cohort Returns for MySuper lifecycle products, excluding large employer sponsored lifecycle products. Allocation of individual life stages to age cohorts based on product information and Rainmaker research. Investment returns are net of all fees. Rank Rank Rank Rolling 12 Sept 15 Fund/Product Sector months 2014/15 Qtr Age cohort: less than 30 years QSuper Lifetime Public Sector 11.3% 1 12.5% 2 0.8% 1 PSS Acc Plan MySuper Public Sector 10.4% 2 12.8% 1 -0.2% 2 UniSuper Industry 7.0% 3 10.8% 4 -1.6% 6 Prime Super Industry 6.8% 4 10.3% 8 -1.6% 5 BUSSQ MySuper Industry 6.4% 5 10.4% 7 -2.3% 9 Maximum 11.3% 12.8% 0.8% Average 5.7% 9.7% -2.3% Minimum 2.1% 6.5% -4.8% Age cohort: 30 to 39 years QSuper Lifetime Public Sector 11.3% 1 12.5% 1 0.8% 1 Suncorp Lifestage Funds Retail 10.0% 2 12.3% 2 -0.1% 2 BT Business MySuper Retail 6.9% 3 10.3% 8 -1.9% 6 AMP MySuper No.2 Retail 6.9% 4 10.7% 5 -1.7% 5 Local Government Super Age-based Public Sector 6.4% 5 10.4% 7 -2.3% 9 Maximum 11.3% 12.5% 0.8% Average 5.6% 9.6% -2.4% Minimum 2.1% 6.6% -4.8% Age cohort: 40 to 49 years QSuper Lifetime Public Sector 11.3% 1 12.5% 1 0.8% 1 Suncorp Lifestage Funds Retail 8.5% 2 10.2% 7 0.1% 2 BT Business MySuper Retail 7.1% 3 10.1% 8 -1.5% 6 AMP MySuper No.2 Retail 6.8% 4 10.3% 6 -1.5% 5 Local Government Super Age-based Public Sector 6.4% 5 10.4% 5 -2.3% 10 Maximum 11.3% 12.5% 0.8% Average 5.5% 9.3% -2.2% Minimum 2.2% 6.3% -4.6% Age cohort: 50 to 59 years QSuper Lifetime Public Sector 8.0% 1 8.7% 5 0.8% 1 BT Business MySuper Retail 6.5% 2 8.7% 4 -0.9% 5 Suncorp Lifestage Funds Retail 6.4% 3 7.3% 15 0.4% 2 Sunsuper for Life Industry 5.7% 4 9.3% 3 -1.9% 13 Bendigo MySuper Retail 5.5% 5 8.1% 12 -1.4% 9 Maximum 8.0% 9.6% 0.8% Average 4.9% 7.7% -1.4% Minimum 2.7% 5.2% -2.7% Age cohort: 60 to 64 years QSuper Lifetime Public Sector 8.0% 1 8.7% 2 0.8% 1 BT Business MySuper Retail 6.4% 2 7.4% 6 0.3% 3 Suncorp Lifestage Funds Retail 5.5% 3 6.0% 12 0.6% 2 ANZ Smart Choice Super Retail 5.3% 4 7.1% 7 -0.5% 10 Telstra Super MySuper Corporate 5.1% 5 9.6% 1 -2.4% 21 Maximum 8.0% 9.6% 0.8% Average 4.2% 5.9% -0.7% Minimum 0.0% 0.0% -2.4% Age cohort: 65 years or older QSuper Lifetime Public Sector 8.0% 1 8.7% 1 0.8% 3 BT Business MySuper Retail 5.1% 2 5.3% 17 1.0% 1 Suncorp Lifestage Funds Retail 5.1% 3 5.5% 15 0.6% 4 Virgin Super Essentials Retail 5.0% 4 5.5% 14 0.0% 7 First State Super MySuper Lifecycle Public Sector 4.9% 5 7.5% 2 -1.1% 18 Maximum 8.0% 8.7% 1.0% Average 4.3% 5.6% -0.3% Minimum 1.8% 1.9% -1.8% Source: APRA statistics, Rainmaker research Rainmaker Information Page 3 MySuper Report Sept 2015 MySuper Asset Allocation - Largest 50 Products (single investment strategy) Asset allocations for MySuper products with a single investment strategy, excluding large employer sponsored funds.