Brighter Super pulls the plug on a number of investment options

Following its merger with Suncorp Super and a “rigorous review” of its investment options, Brighter Super announced this week that from 31 May it will offer one set of investment options for all members in an effort to cut down on costs.

Since the 2022 merger of Suncorp Super and Brighter Super, the fund has been offering two separate sets of investment – one for Brighter Super’s members and one for former Suncorp Super members with Optimiser Accounts, offering a total of 32 options.

The fund said in a statement this week it arrived at a decision, which it described as being in the “members’ best interest”, to close the existing Brighter Super Growth, Balanced, Conservative Balanced, Stable, and International Shares options.

“Members invested in these options will be switched to a similar continuing investment option with a history of better performance on 31 May 2024,” the fund said.

Also as part of its announcement, the fund said it will shutter two of its socially responsible investment options at the end of May as the number of investors continues to decline.

On 31 May, the Socially Responsible and Socially Responsible Australian Shares investment options will close, upon which funds will be reallocated to investments with a history of better performance.

Despite the closure of these options, the fund said: “Brighter Super has recently made the decision to ensure that we consider environmental, social and governance (ESG) factors, and in particular governance of carbon emissions, across all our investment options.

“More generally, we are increasing our advocacy with companies regarding their own contributions in this space. This is a positive step forward for Brighter Super.”

Also on 31 May, Brighter Super said it will change some of its investment options’ targets and values, including standard risk measures, strategic asset allocations, return targets, and fees.

“We continually review our investment options to ensure that investment outcomes reflect the current investment environment and investment allocation,” the fund said.

This news comes after Australian Retirement Trust (ART) also announced plans to close its QSuper Socially Responsible option from 1 July after it failed the 2023 annual performance test, returning -0.41 per cent per annum during the 2023 financial year.

Weighing in on these concerns, ART’s Andrew Fisher told Super Review last month that the fund’s other sustainable investment option had “done quite well” and “doesn’t have any real challenges with the performance test”.

“From my point of view, we believe sustainable investment leads to better long-term investment outcomes, and the performance test is a measure of long-term investment outcomes, so I think it’s incumbent on us on behalf of our members to invest well, pass the performance test, and invest sustainably,” he said.