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When it comes to choosing a superfund, understanding fees and returns is crucial. Recently, I took a deep dive into the top superfunds’ indexed balanced options. These options generally hold 70-75% growth assets, but each fund names them differently. My motivation? My dad is looking to switch his superfund after his financial planner raised their advice fee to an unjustifiable level.
I conducted a comparison between major funds’ balanced options and their indexed balanced counterparts. The findings were clear: indexed balanced options tend to deliver higher net returns after fees. My research was inspired by Reddit user u/SwaankyKoala, and I’ve done my best to ensure accuracy. One of the biggest surprises? The wide range of fees, especially when comparing industry funds to retail funds.
TL:DR
- Hostplus has the lowest fees in this space, followed by REST.
- AustralianSuper and Australian Retirement Trust come in third, depending on your balance.
- Hostplus is the clear winner primarily because they do not charge fees based on assets under management (AUM).
Additional costs to consider: Some funds apply additional costs such as buy/sell spreads on transactions and trustee fees based on AUM. For simplicity, I excluded these, but they can still impact returns—so always read the Product Disclosure Statement (PDS) carefully. If you spot any errors in my research, please let me know so I can correct them!
Why Fees Matter?
The data confirms that industry superfunds generally have lower fees than retail super providers. These fees may seem small, but over time, they can significantly impact your super balance due to compounding. Lower fees mean more of your money stays invested, ultimately boosting your retirement savings.
What Affects Performance?
Even within indexed balanced options (typically 70-75% growth assets), performance can vary. This is largely due to how each fund allocates assets across different growth investments such as property, Australian shares, infrastructure and international shares. I’ll cover performance differences in a future post if there’s enough interest.
That’s it for today! I strongly encourage you to review the fees your superfund charges. A little effort now can make a big difference in the long run.
Breakdown By Balance
| Superfund | Name | Fee on $50000 | Fee on $100000 | Fee on $250000 | Fee on $500000 |
|---|---|---|---|---|---|
| Hostplus | Balanced Index | $98.00 | $118.00 | $178.00 | $278.00 |
| REST | Balanced Index | $128.00 | $178.00 | $328.00 | $578.00 |
| AustralianSuper | Indexed Diversified | $152.00 | $252.00 | $552.00 | $902.00 |
| HESTA | Indexed Balanced Growth | $152.00 | $252.00 | $552.00 | $1,052.00 |
| Australian Retirement Trust | Balanced Index | $152.40 | $242.40 | $512.40 | $962.40 |
| Aware Super | Balanced Index | $172.00 | $292.00 | $652.00 | $1,252.00 |
| Colonial First State* | Indexed Balanced | $185.00 | $370.00 | $925.00 | $1,850.00 |
| Cbus | Indexed Diversified | $218.00 | $358.00 | $778.00 | $1,478.00 |
| AMP Super | Balanced Indexed | $273.00 | $468.00 | $1,053.00 | $2,028.00 |
| MLC Super Fund | Low Cost Balanced | $298.00 | $518.00 | $1,178.00 | $2,278.00 |
*Note CFS has portfolio rebate depending on balance, I did not include this, please refer to PDS
Breakdown By Fee Types
| Superfund | Name | Fixed Admin | Admin AUM % | Admin Cap | Investment Fee | Transaction Fee |
|---|---|---|---|---|---|---|
| AustralianSuper | Indexed Diversified | $52 | 0.10% | $350 | 0.10% | 0.01% |
| Australian Retirement Trust | Balanced Index | $62.40 | 0.10% | $562.40 | 0.08% | 0.00% |
| Aware Super | Balanced Index | $52 | 0.15% | $750 | 0.09% | 0.00% |
| Hostplus | Balanced Index | $78 | 0.00% | $0 | 0.04% | 0.00% |
| REST | Balanced Index | $78 | 0.10% | $600 | 0.00% | 0.00% |
| HESTA | Indexed Balanced Growth | $52 | 0.15% | $750 | 0.05% | 0.01% |
| Cbus | Indexed Diversified | $78 | 0.19% | $1,000 | 0.09% | 0.02% |
| Colonial First State | Indexed Balanced | $0 | 0.20% | N/A | 0.17% | 0.00% |
| MLC Super Fund | Low Cost Balanced | $78 | 0.15% | $1,000 | 0.29% | 0.02% |
| AMP Super | Balanced Indexed | $78 | 0.19% | 950 | 0.20% | 0.02% |
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