the Fraser Review findings


The much anticipated findings of the Fraser Review – led by Former Reserve Bank Governor and Treasury Secretary, Bernie Fraser – were delivered last month. 

The review, commissioned by Industry Super Australia (ISA) and the Australian Institute of Superannuation Trustees (AIST), analysed the governance model of profit-to-member super funds.

Financial Services Minister Kelly O’Dwyer responded to the report saying the Government was committed to legislation it first attempted to progress through Parliament in 2015, that mandated the number of independent directors on the boards of super funds.

ISA and AIST argue that the current profit-to-member super fund board structure, whose directors equally represent employers and employees, has contributed to these funds outperforming others in the sector.

"...members’ interests will be better served through a focus on directors’ values, skills and expertise.”


ISA Chief Executive, David Whiteley said the review: “found that the Government has not adequately made the case for a mandatory quota of independent directors and members’ interests will be better served through a focus on directors’ values, skills and expertise.”

Mr Fraser recommended Australia’s profit-for-member industry superannuation funds prioritise values, skills and expertise in a mandatory principles-based governance code planned to commence from 1 July 2017.

AIST has also released a draft governance code and is currently consulting with industry and holding a number of information sessions around the country. HESTA has provided feedback and is supportive of the code.

HESTA has consistently advocated for super funds to have the flexibility to choose the governance arrangements that best suit their respective needs. This has underpinned the strong, long term achievement of the fund in delivering good outcomes for members.

Continuing to deliver strong long-term returns

Based on a starting income of $50,000 and a starting account balance of $50,000, HESTA has delivered $18,725 more than the average retail super fund over the past 10 years*. This was due to both lower fees and higher investment earnings. 



want more information?

You can view the full report on Industry Super Australia's website.

Past performance is not a reliable indicator of future performance and should never be the sole factor considered when selecting a fund.

*Comparisons modelled by SuperRatings, commissioned by HESTA. Modelled outcome shows 10 year average difference in net benefit of the main balanced options of HESTA and 75 retail funds tracked by SuperRatings, with a 10 year performance history, taking into account historical earnings and fees – excluding contribution, entry, exit and additional adviser fees – of main balanced options. Outcomes vary between individual funds. Modelling as at 30 June 2016.

Consider a fund’s Product Disclosure Statement (PDS) and your personal financial situation, needs or objectives, which are not accounted for in this information, before making an investment decision. H.E.S.T. Australia Ltd ABN 66 006 818 695 Australian Financial Services Licence 235249 as Trustee of Health Employees Superannuation Trust Australia (HESTA) ABN 64 971 749 321.

See for more details about modelling calculations and assumptions.

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