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
Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”.
The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
