Super figures point to NSW victory

If superannuation performance figures mean anything in the world of rugby league, the Blues will win the Origin opener tonight.

Just hours before the Blues and Maroons begin the annual battle for rugby league supremacy at Brisbane's Suncorp Stadium, latest Rainmaker analysis reveals New South Wales based super funds are edging out their Queensland opponents 3-2 across five key categories:

  • MySuper products among the top 10 funds in the country
  • Lifecycle products among the top 10
  • Average fees
  • Default death and TPD insurance premiums
  • Default income protection premiums
Starting with the number of MySuper products ranking inside the top 10 across the nation, it's a complete bluewash (see figure 1).

Fig. 1 - MySuper products in the top 10

  1 year 3 year 5 year 10 year Total
NSW 5 3 2 2 12
QLD 1 2 2 0 5
Funds based in NSW rank inside the top 10 a whopping 12 times across four time periods, in comparison to QLD's five.

The results tighten on a five year basis with the states sharing the spoils two-all. But when it comes to the one, three and 10-year performance of their MySuper products, the Blues win comfortably.

Their lead extends to lifecycle products too. Rainmaker analysis shows NSW products landed in the top 10 lifecycle products 17 more times than their northern counterparts (see figure 2).

Fig. 2 - Lifecycle products in the top 10

  1 year 3 year 5 year 10 year Total
NSW 6 6 6 4 22
QLD 2 1 1 1 5
However, those who pay close attention to State of Origin know there are two things which hold true each and every year:
  1. The contest is always tight
  2. The Maroons perform best with their backs against the wall
As it turns out, these two truths also hold up when it comes to superannuation.

It's worth pointing out the 83 NSW super funds have a combined $701.9 billion in funds under management, while their 14 QLD opponents can only muster $188.6 billion. And with only four QLD funds offering lifecycle products in comparison to NSW's 13, the Maroons were always going to be up against it in the early stages.

Though despite NSW's fast start, the Queenslanders fight back to take the next two categories: average fees and death and total permanent disability default premiums.

When it comes to fees, NSW are a bit behind. On average, a $50,000 balance will attract an annual fee of $623.13 in a NSW super fund.

However, the same amount in a QLD based fund will attract $11.69 less in fees each year.

Tying the contest at two a piece, QLD funds also register lower death and TPD default premiums than their Blue opponents.

In a QLD fund a 40-year old would pay a default death and TPD premium of just $316.90 a year according to Rainmaker. But in NSW, the number rises all the way to $369.70.

With the truths holding, the battle is in a deadlock. Defying conventional wisdom - and pointing to a NSW victory tonight - the Blues come home strong with the result on the line.

Default income protection premiums are where the Blues win the contest. Rainmaker analysis shows default income protection premiums for a 40-year old in a NSW fund are just $192.30 a year, compared with QLD's $457.80.

Perhaps the results are an omen. Perhaps they are not. But in 2019, one thing is clear: NSW super funds take the cake, even if only by a small margin.

Read more: NSWQLDBluesMySuperRainmakerMaroonsState of OriginSuncorp Stadium
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