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IOOF Employer Super is the best of both worlds

IOOF Employer Super

About the fund

IOOF Employer Super is not your average retail super fund. Run by the IOOF group, which first opened its doors in 1846 in colonial Melbourne, it has mastered the art of being both a full-service adviser-supported platform and an investor-focused super fund able to use its scale to deliver members a wide range of low-cost investments.

What it offers

IOOF Employer Super offers nearly 300 investment choices, including a balanced MySuper option and 12 other multi-manager strategy options that it runs itself, 275 externally managed funds, six term deposits and direct access to ASX 300 shares.

IOOF Employer Super, because it is part of a much larger group that oversees more than $100 billion, is able to offer members discounted life insurance, all types of superannuation solutions, a full range of non-super investments and access to comprehensive financial adviser support. For all this, many of its members can pay total fees of just 1.1%.

Investment performance

A member who invested $10,000 in IOOF Employer Super fund five years ago, when the balanced MySuper option began to hit its straps, would now have $14,410 in their account, which is only slightly less than the SelectingSuper MySuper default index over the same period. Over this period the product earned 7.6%pa. Showing that this is a product on the move, its 12-month performance for 2015-16 is in the top quartile.

rainmaker

Rainmaker SelectingSuper’s conclusion

The AAA-rated IOOF Employer Super is a hybrid “best of both worlds” fund that in 2016 earned the SelectingSuper award for workplace full-service multi-choice product of the year. If you’re after a low-cost but full-service fund, it’s worth a closer look.

Key fund data

Size$4 billion5-year performance7.6%pa as at June 30, 2016 after fees
SelectingSuper ratingAAAInvestment choicesAlmost 300
Fees1.1% in the MySuper optionInsurance choices120
Alex Dunnin is director of research at Rainmaker Information, publisher of SelectingSuper.

Written by Alex Dunnin

Alex Dunnin

Alex Dunnin is director of research at Rainmaker Information, publisher of SelectingSuper.

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