CEO Update, winter 2023

By Kate Farrar, Chief Executive Officer, Brighter Super

1 August 2023

I can look back at the 2022/23 financial year with pride and say it’s been the most memorable and successful year in our fund’s history.

Over the last 12 months, we have completed the transfer of both Energy Super and Suncorp Super into Brighter Super. We have more than doubled the size of our fund, and in the process, we are reviewing and picking the best possible services and products from the three merged funds to support your journey to retirement.

It’s been a lot of change for many of our members, and we want to thank you all for your patience while we completed this work.

Brighter Super’s shining performance

I am delighted to report that Brighter Super’s MySuper option returned 10.62% in the 12 months to the end of June 2023, according to the latest results from industry analysts SuperRatings¹.

This places us as the 5th highest performing MySuper option nationally (SR50 MySuper Index, 12 months to 30 June 2023). We also have the highest performing MySuper option return for a Queensland industry fund.

With so many of our members invested in our default MySuper option, I am proud of how we have delivered strong returns during such a tough period for the global and domestic economy.

Other strong returns for our Accumulation options included Growth returning 12.61% and Balanced returning 10.60% (12 months to 30 June 2023).

For our members with Pension accounts, similar strong returns included Growth at 13.55% and Balanced at 11.34%.

Find out more: Brighter Super shines as Queensland’s top performing MySuper option in an industry fund

Industry recognition

Earlier this year, Brighter Super was awarded Platinum ratings from SuperRatings, which is its highest possible rating². These ratings reflect value for money and the potential to maximise retirement savings in a well serviced, secure environment²:

• For the 15th year in a row, Platinum ratings for our Accumulation account (MyChoice category) and our Pension account (Pension category).
• For the 10th year in a row, a Platinum rating for our MySuper investment option (MySuper category).

Find out more: Awards just the beginning as Brighter Super primed for 2023

More members than ever

On 1 June 2023, 130,000 Suncorp Super members officially became Brighter Super members. I am delighted to welcome them to the fund.

The transfer of Suncorp Super into Brighter Super has increased our funds under management by a further $6.1 billion. The growth of our fund brings benefits to all our members. Over time, our increased size and scale can improve operational efficiencies, deliver better services and reduce administration costs for many of our members.

Our Investments team will be looking at the best-performing investment opportunities from the transfer of Suncorp Super into Brighter Super (as we did with Energy Super) and how to take advantage of the additional liquidity and diversification to the Brighter Super portfolio.

We have now broadened our member base into the financial services sector, where many of our new members work. Brighter Super has a proud history of serving members in local government, energy and electrical sectors, and now the financial services sector. As an open fund, we also welcome members from many other sectors and the wider community.

When we acquired Suncorp’s superannuation business in 2022, it was the first time in Australia that a not-for-profit fund had acquired a retail fund. With the transfer of members to Brighter Super now complete, our newest members can benefit from being part of a not-for-profit fund where the focus is on lower fees and better services rather than returns to shareholders.

You may not know that the transfer of Suncorp Super into Brighter Super happened 30 months earlier than planned. This was because we wanted to bring forward the collective benefits to all members.

We have made auto rebalancing available to all members

Market movements and account transactions can mean that over time the allocation to different investment options within your account can move away from your intended strategy. Auto rebalancing reallocates your balance back to your intended strategy, helping ensure your investment allocation stays in line with your strategy.

On 1 July 2023, we introduced the option to have auto rebalancing applied to your Accumulation account either quarterly, six-monthly, or annually. To opt into auto rebalancing, complete the relevant form at brightersuper.com.au/forms.

Pension account members can already choose to have their account auto rebalanced, but this was previously only available annually. From 1 July 2023, Pension account members can also nominate a quarterly, six-monthly, or annually for auto rebalancing.

We have introduced a new advice service

With the transfer of Suncorp Super into Brighter Super, we also acquired the relationships of more than 1,000 external financial advisers.

Advice is set to change in the coming years, as the Government has announced support for removing red tape and enabling super funds to provide more comprehensive and personal financial advice, particularly retirement income advice.

Recognising the importance of advice for many members, we are refocusing many of our services to be 'advice-led'. We have created a new team and suite of advice offerings for you to access.

That’s why we now offer the option for you to pay fees to your independent financial adviser from your Brighter Super account for advice that relates to super. Previously, this option was only available for advisers employed by the fund. However, we understand members sometimes choose to use an independent financial adviser, so we now offer the option to all members.

We’ve appointed Zurich as lead insurer

Brighter Super has changed its lead insurer from TAL to Zurich.

Members employed by local government and associated industries have previously been insured by TAL, and members from the energy industry have been insured by Zurich.

We have always intended to move to one insurer to create better efficiencies. So as of 1 July 2023, Zurich has become the insurer for our local government and associated industries.

Despite this being an environment where insurance premiums are rising, our move to a single insurer will result in your premiums and cover remaining the same.

In partnership with Zurich, we will also implement new discounted travel insurance for Brighter Super members through Cover-More, plus access to a new health and wellbeing app called LiveWell. We’ll tell you more about these new benefits and how to access them over the coming months.

We’ve added stronger protection with Multi-Factor Authentication

With high-profile cyber breaches last year, we want to reassure you that keeping your data safe is a high priority for us, and we consistently look for ways to strengthen the security of your information.

That’s why we have introduced Multi-Factor Authentication when you log in to Member Online, giving your account two layers of protection – your password and a one-time code sent to your email or mobile.

You can learn more about Multi-Factor Authentication and how to protect your account from fraud.

Our people are here for you

Brighter Super has worked hard this year to complete the Suncorp Super transfer. Over time, we will review and optimise every aspect of our business as best we can, with our members in mind.

We pride ourselves on working on different ways to bring you better products and services. Growth brings challenges and opportunities, and we will always be right by your side throughout all the changes.

If you need guidance or assistance, you can contact us on 1800 444 396 or attend any of our seminars and webinars.

We’ve started to expand our webinar program to make it more accessible for all members. Superannuation can be an overwhelming topic, so we’re breaking up our webinars into a range of smaller, easy-to-understand topics. Keep an eye out for these events on our seminars web page.

Changes to superannuation legislation

The Government announced changes for super as part of its recent Federal Budget.

You can read about the Government’s proposals and what they could mean for your super in our recent article on the Federal Budget.

Other changes to super from 1 July 2023 include:

• The Superannuation Guarantee (SG) rate that employers are required to pay into their employees’ super was increased from 10.5% to 11%.
• The amount of super that can be moved into retirement phase was increased from $1.7 million to $1.9 million.
• For our members with Pension accounts, the temporary reduction to minimum drawdown rates ended (this was a COVID-19 relief measure) – you can find out more on our website.
• For our members on lower incomes, the income thresholds for the Government’s super co-contributions changed – the latest information is available on the ATO website.

We continue to work with our regulators and Government on changes in our members’ best interests.

Guiding you through the changes

Our team of superannuation specialists and financial advisers are here to guide our members through this period of change and growth.

If you have any questions about the recent changes at Brighter Super or anything regarding your superannuation, please contact us on 1800 444 396.