2021/2022 in review

Fifth highest performing MySuper option in 2021/22

According to SuperRatings, 47 of the top 50 MySuper options had negative returns. legalsuper’s MySuper return was the fifth highest in the top 50 performers.

The below chart shows the one year return to 30 June 2022 for each of the 50 highest performing MySuper options. It highlights the significant extent to which legalsuper out-performed most other industry and retail funds.

legalsuper vs SuperRatings (All Fund Median) for periods ended 30 June 2022

Over longer time-periods, legalsuper’s MySuper return has consistently exceeded the SuperRatings all fund median return, as shown in the below chart.

Operating costs & member fees

Careful management and containment of our operating costs through 2021/22 allowed member administration fees to be held constant for a further year. In 2021/22 we decided to relocate our Melbourne office out of the CBD to the perimeter of the CBD at 627 Chapel Street in South Yarra. This decision has delivered a 50% reduction in office lease rental costs. Our new building includes three floors of communal office and meeting room facilities which are available for Board meetings and to supplement our new office space. Our investment team has continued to successfully negotiate lower investment manager fees across the portfolio which also delivered member fee reductions through 2021/22.

Our total fee for a $50,000 balance is 8% lower than the retail fund median. Retail funds include AMP, BT, Mercer and IOOF. Our fee is modestly ($17.60 or 3%) higher than the industry fund median. Which is a function of the higher levels of personal service we provide relative to other larger industry funds.

The chart below shows the aggregate fee for $50,000 invested in MySuper for legalsuper and all fund median for industry funds, retail funds and all funds as reported by Chant West.

Revenue

2021/22 was a year in which investment revenue was negative due to downward movements in the net market value of most investments. Total revenue (other than investment revenue) increased $43m or 12% in 2021/22.

Contributions from employers increased 11%, compared to the prior year. Contributions from members increased at an even higher rate of 20%, compared to the prior year. $22m of insurance proceeds for death and TPD claims were received from Zurich (insurer for death & TPD insurance benefits).

Expenditure

Total expenditure increased $42M or 16% in 2021/22. Key reasons for this increase included a $23m increase in death claims, $39m increase in transfers to other funds offset by $29m of payments made in 2020/21 (but not in 2021/22) to members who applied for the early release of their super pursuant to the COVID19 early release scheme established by the government. This scheme was available through 2020/21 but not in 2021/22.