RateMySuper tool to help members understand and compare fund performance

From
Kirby Rappell

Kirby Rappell

Leading superannuation research house SuperRatings has launched a new super fund comparison tool to help members understand and compare investment performance across different super funds.

The RateMySuper tool is made available to super funds to help current and prospective members understand how their fund stacks up on a net benefit basis.

The Lonsec-owned SuperRatings said the new tool would help create greater transparency in the superannuation sector and educate members on how to assess the investment performance of their fund.

“RateMySuper is a customisable comparison tool that allows members to quickly assess their fund’s performance based on their personal criteria,” said SuperRatings Executive Director Kirby Rappell.

“Members can input their age, salary, gender, occupation, and account balance, and generate a simple but powerful comparison report that shows how their chosen fund stacks up against its peers.”

The RateMySuper tool makes cross-fund comparisons based on net benefit, defined as the investment return less administrative and performance fees and taxes charged by the fund.

“At SuperRatings, we believe that net benefit—earnings after all fees and taxes—is the best way of assessing the real value that a super fund delivers to its members,” said Mr Rappell.

“We’re very pleased to see the early interest from super funds in adopting the tool, which will help their members gain a better understanding of the interplay between returns and fees and ultimately determine if their fund is providing value for them.”

RateMySuper will add an extra degree of transparency and encourage funds to review their fee structures with a focus on ensuring value for low balance accounts and making meaningful disclosures to members.

Funds can imbed the RateMySuper tool directly onto their website with full control over its look and feel.

“When the pandemic hit, superannuation was there to provide stability, advice, and relief for Australians investing for their retirement,” said Mr Rappell.

“But the job is far from done. In this critical period, communicating the value of your fund’s offering is more important than ever. As superannuation is front of mind for so many Australians, members are checking their balances and taking the time to assess the value they get from their fund. RateMySuper will make this process even easier and provide meaningful insights that members need.”

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