Welcome to another edition of Fast Five – our series where we ask some of the most influential and exceptional business leaders five questions to get a behind-the-scenes look at some of Australia’s most dynamic businesses.

In this edition we spoke to Michael Dundon, Chief Executive Officer, CareSuper.

Michael is a highly experienced CEO and has held leadership positions in the superannuation, insurance and utilities industries. He is driven by a passion to help members achieve their best possible retirement.

1: Having recently been appointed the new CEO, what is your vision for CareSuper?

Having admired CareSuper for many years, I’m proud to have joined an outstanding and highly regarded profit-to-members fund that truly has its members’ best interests at heart.

CareSuper is passionate about helping members achieve their best possible retirement and I’m looking forward to leading CareSuper to continue to deliver great outcomes for our members.

CareSuper is also in a period of significant growth. We believe that by increasing our size and scale, we can ensure the long-term financial sustainability of the Fund and continue to help our members achieve their goals. As we grow, we want to maintain many of the unique characteristics and service offerings that have always set us apart. In particular, the way we manage our members money and the personalised services we offer, which are both great value adds for members and employers.

So while size and scale is important to reduce costs for members, we also believe there is an important place for a fund like CareSuper which is committed to recognising every member’s unique journey to retirement and ensuring they feel genuinely supported in their experience with superannuation. We’re aiming to be a leading, compelling and successful alternative to the largest funds, delivering superior outcomes for our members at all life stages.

I am also pleased to be able to continue developing CareSuper’s strong and inclusive organisational culture. The outstanding member-focused culture at CareSuper is a legacy of the Fund’s previous CEO, Julie Lander, who retired earlier this year after successfully leading the Fund for more than 20 years.

2: What have been some exciting achievements or initiatives for the fund recently?

CareSuper recently received two exciting awards, the MySuper of the Year and the Smooth Ride Award 2023, by independent ratings agency, SuperRatings.

The MySuper of the Year award recognises CareSuper’s Balanced (MySuper) option as the top value-for-money default super investment option. And the Smooth Ride award recognised our investment strategy for protecting members’ super over the long term, smoothing the ups and downs of market movements so members experience less volatility. These awards are a testament to the hard work and dedication of everyone at CareSuper and reaffirms that we’re consistently doing what’s right for our members.

It’s been a busy 2023 so far for the team at CareSuper. We released our Roadmap to Net Zero by 2050, which forms part of our responsible investing strategy. We’ve also made important changes to our insurance offering. These changes mean the insurance fees payable by members are even lower and ensure we continue to deliver value for our members.

3: What is CareSuper’s current approach to investment strategy, and can responsible investing come without sacrificing performance (or even enhance it), particularly as consumers become more ESG-conscious?

At CareSuper, we use an active management strategy when investing our members’ money. This means our investment managers are actively making decisions to buy or sell investments that they believe have the potential to outperform the broader market and maximise returns over the long term. We also combine this with downside protection which aims to minimise the impact of negative returns when markets fall. Our recent award wins and strong long-term returns demonstrate the success of our investment approach.

Responsible investing is a fundamental part of our investment program, and we believe it’s key to ensuring the long-term strength of the Fund. In launching our Roadmap to Net Zero by 2050, we demonstrated our long-term commitment to responsible investing and a brighter future for our members.

Our active investment approach also means we have the capability to review the ESG credentials of every investment. We do this — not because our members and the broader community have come to expect it — but because we believe it minimises risks, generates better long-term returns and is in our members’ interests.

4: How do you see the role of the superannuation fund evolving in the broader economic landscape, and how may CareSuper adapt to these changes?

Since the introduction of super in the 1980’s the assets held by funds have grown from around $40 billion in the 1980s to over $3.3 trillion today. As a result, super funds now play a very important role in the economy, holding a large portion of equities on the ASX and making significant investments into privately held assets such as roads, airports and logistics as well as investing in overseas markets.

Ultimately, the primary purpose of super is to provide an income in retirement that supplements or allows people to be self-funded and independent of the Age Pension. With many Australians having now had super for their entire working lives, their super is or will be one of their biggest assets. Super funds, including CareSuper, are increasingly having a more integral role in supporting members as they transition to and enter retirement. Ensuring our members can live a financially stable and sustainable lifestyle in their retirement years is an important focus for CareSuper and we’re looking at how our products, services and education offering can evolve to meet our members needs today and in the future.

In highly volatile economic conditions like we’re seeing today, CareSuper’s active investment style allows us to be nimble and adjust. This is one of the key attributes of the Fund and really sets us apart. This approach has enabled us to deliver strong investment performance with CareSuper one of the highest performing funds, especially over seven, 10, 15 and even 20-year timeframes.* We delivered these strong returns while ‘smoothing out’ some of the highs and lows of share market uncertainty, helping members to feel more confident on their journey to retirement.

When it comes to national economic priorities or challenges super funds have the opportunity to use our investment capacity and long-term investment approach to benefit our wider community. For example, in 2022, the Government announced the National Housing Accord, which will encourage more institutional investment into affordable housing. CareSuper endorsed the Housing Accord and will support these initiatives provided they’re also in the best financial interests of our members.

The world is also acting on climate change, and this will have significant impacts on financial markets as we transition to a low-carbon economy. At CareSuper we’re committing capital to climate transition-related opportunities, these are companies that will benefit from the transition to a lower-carbon economy, and we’re actively working towards our target of achieving net zero by 2050.

The superannuation industry is ever-changing, but our members can be assured that CareSuper will always remain committed to our core purpose which is to maximise their retirement outcomes.

5: Why is super fund choice important for employees and how can employers play a role in the financial literacy of their employees?

The government recently introduced legislation known as ‘super stapling’ which means more employees will take their super accounts with them when they change jobs. This will help individuals avoid having duplicate super accounts and paying unnecessary fees, but it’s incredibly important that employees use moments, like when they change jobs, to check which fund their super is being paid to. Employees should be ensuring they’re with a high-performing, profit-to-members fund and that they have suitable insurance for their circumstances. Fees are important to consider too. Employees should be finding out if their fund offers low fees, but also that they’re receiving the best possible outcomes for the fees they pay. They can do this by looking at the ‘net benefit’ – the investment return you receive minus the fees you pay.

Employers can help their employees by choosing a default fund that offers these benefits and ensure their employees are aware of their options when it comes to selecting a super fund.

Research shows that worrying about personal finances is a very significant contributor to employee wellbeing and productivity. Employers can utilise their super funds to help them support their workforce and help their staff to have confidence in their finances. As we all know this is particularly important during times of economic uncertainty. As an employer you should check if your super fund has a relationship manager who can support you to meet your super obligations and help your staff get the most from their super and broader finances. Good funds will also offer workplace seminars and education services which can help your staff improve their knowledge and make informed decisions about their super. Employers can also encourage staff to access financial advice through their super fund. Funds like CareSuper offer general advice at no additional cost as part of their membership.^ CareSuper also has online financial education tools on our website which are also available at no additional cost.

For employers who choose CareSuper as their preferred fund, we offer workplace education, seminars and one-on-one support provided by our dedicated client partnership team. We also provide tailored microsites which are designed to help your staff engage with their super and can be hosted on your intranet for easy access. As an employer you can take advantage of these services to support your employees.

Disclaimers:

*SuperRatings Fund Crediting Rate survey SR50 Balanced (60-76) Index – March 2023
^ Financial advice obtained over the phone, or through MemberOnline, is provided by Mercer Financial Advice (Australia) Pty Ltd (MFAAPL) ABN 76 153 168 293, Australian Financial Services Licence #411766.

Past performance is not a reliable indicator of future performance and you should consider other factors before choosing a fund or changing your investments.

This information is general advice only and does not take into account your particular financial needs, circumstances or objectives. You should consider your own investment objectives, financial situation and needs and read the appropriate Product Disclosure Statement and Target Market Determination before making an investment decision. You may also wish to consult a licensed financial adviser. 

CARE Super Pty Ltd (Trustee) ABN 91 006 670 060 AFSL 235226. CARE Super (Fund) ABN 98 172 275 725.