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Your money's working hard, even when you're not

Superannuation  |  17/07/2017  |   3 min read

Leading independent superannuation ratings agency, SuperRatings, says a member starting with an Equip account balance of $50,000 on 1 July 2007 would be $12,382 better off than a member in the average super fund.

SuperRatings calls this the ‘net benefit’ that a fund delivers to its members and says it is one of the most important measure of a fund’s performance relative to others. The chart below is reproduced from the SuperRatings’ Benchmark Report for Equip and shows how this is calculated for an Equip accumulation member invested in the Balanced Growth option.

 

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The report says: “It is pleasing to note that Equip has delivered excess earnings and fee savings to members over each time period assessed. Over the past decade, Equip has delivered $8,943 in additional earnings relative to the average fund, while charging $3,439 less in fees. Accordingly, this would have added $12,381 to a member’s account under this set of assumptions.”

The following table is also reproduced from the report and shows the net benefit numbers for 5, 7 and 10-year periods to 30 June 2016:

Time period Earning benefit Fee benefit Excess net benefit
5 years $2,423 $1,254 $3,677
7 years $2,878 $2,277 $5,155
10 years $8,942 $3,439 $12,381

 

Now with nearly $15 billion in assets and over 75,000 members, Equip expects to improve net benefit to members within the next 18 months, principally through cost reductions in its investment management and general operations. This will ultimately mean lower fees for members.

Members with, or thinking about, Equip pensions will also benefit from fee reductions in the months ahead.

Check your retirement income with the Equip calculator