POWERED BY MOMENTUM MEDIA
Drop the confrontational fund descriptors, says AMP
AMP has urged a move away from the model that pits industry superannuation funds against retail master trusts by implementing new descriptors for superannuation funds.
In its submission to the Cooper Review, AMP argues that the industry should move from the categorisation of funds according to their ownership or legal structure such as industry, retail, corporate and self managed funds.
Instead, it suggested that a new regulatory framework should be introduced based on the nature of the customers being served (eg, ‘default market’ and ‘choice market’).
In backing its argument, the AMP submission said that industry funds had now generally become public offer funds and that the differences between large public offer industry funds and retail funds were becoming blurred.
It said that notwithstanding the ‘not for profit’ distinction, the customer offerings of both segments had similarities. These included employing financial planners, the introduction of retirement products and the broadening of insurance offerings.
At the same time, the AMP submission argued that several retail funds were now offering low cost options which had many of the characteristics of an industry fund including low cost, simplicity and limited investment options.
AUTHOR
Mike Taylor
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
