Fee reductions main motivator for fund mergers
Cost and fee reductions have emerged as the primary reason for funds to consider merging, according to survey conducted by Super Review.
The survey, conducted during last November's Association of Superannuation Funds of Australia annual conference in Brisbane, asked delegates to rank what they believed made a fund merger consistent with the best interests of members.
The survey, sponsored by Pillar Administration, found that reduced fees due to scale emerged as the most important factor, far outweighing both improved investment performance and greater security as reasons to justify a fund merger.
The second most important justification for a fund merger was cited as being enhanced products and services, with improved investment performance being rated least important.
Nearly 60 per cent of respondents rated reduced fees due to scale as being either the first or second most important reason for a fund merger, while barely 30 per cent of respondents felt the same way about investment returns.
Recommended for you
Ethical super fund Australian Ethical has announced the appointment of Anthony Lane as chief operating officer.
The structural shift towards active ETFs will reshape the asset management industry, according to McKinsey, and financial advisers will be a key group for managers to focus their distribution.
ASIC has warned that practices across the $200 billion private credit market are inconsistent and, in some cases, require serious improvement.
A surge in electricity prices has driven the monthly Consumer Price Index to its highest level in a year, exceeding forecasts.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
