POWERED BY MOMENTUM MEDIA
MySuper 'unnecessary', says Local Govt Super
MySuper is "unnecessary" because superannuation funds already offer low-cost products, according to Local Government Super (LGS) chief executive Peter Lambert.
The fierce competition in the industry has already dictated a move to low-fee, simple investment options within the industry, he said.
"The industry has evolved. Not only are the industry funds offering low-cost products, but now even the retail funds have entered into that," Lambert said.
Lambert was more enthusiastic about the SuperStream changes, which he said would benefit the industry by making the contributions process much more efficient.
However, he said a better approach by the Government would have been to set a deadline (say, in three years' time) at which point all contributions must be handled electronically.
LGS continues to champion environmental, social and governance (ESG) issues.
"Local government is the heart of sustainability - it looks after water and land usage. It makes it easier to take a leadership position when you know there isn't going to be a concerted backlash from your members," said Lambert.
The fund has put its money where its mouth is by taking a short position on various stocks over the years.
"We had shorted out News Limited in our portfolio [over the past three years], simply because it failed on some ESG governance standards," he said.
Despite taking a loss on the position "as markets took off", the short on News Limited turned out to be vindicated after the phone hacking scandal erupted last year and the company's share price plummeted.
LGS is currently shorting Aristocrat (a poker machine manufacturer), the timber company Gunns and Seven Group, according to Lambert.
In a decision made last month, the LGS board gave the green light to more frequent changes to the company's investment portfolio, via dynamic asset allocation.
Recommended for you
The future of superannuation policy remains uncertain, with further reforms potentially on the horizon as the Albanese government seeks to curb the use of superannuation as a bequest vehicle.
Superannuation funds will have two options for charging fees for the advice provided by the new class of adviser.
The proposed reforms have been described as a key step towards delivering better products and retirement experiences for members, with many noting financial advice remains the “urgent missing piece” of the puzzle.
APRA’s latest data has revealed that superannuation funds spent $1.3 billion on advice fees, with the vast majority sent to external financial advisers.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
