POWERED BY MOMENTUM MEDIA
External manager structure still optimal: FuturePlus
Superannuation funds that look to scale to reduce fund manager fees may be disappointed, according to FuturePlus chief executive Madeline Dermatossian.
Dermatossian said that although funds have looked to merge to reduce overall fees, fund managers would just be charging a percentage on a larger pool of money.
"I don't think scale is going to reduce fees that much - it's just a bigger pot of money," she said.
Internalising investment operations on the basis of reducing fees could also prove inefficient, she said, as it would inevitably lead to a hybrid model where the internal team was dependent on external fund managers for guidance.
She questioned how many specialist fund managers super funds would need to in-source, saying fees would "sky-rocket" compared to leveraging off an external fund manager.
"I don't think that hybrid model…is going to be any more effective than having it as a totally outsourced function.
"You may need one or two internal analysts for forwarding, rebalancing, reviewing and those sorts of administrative tasks - but unless you're prepared to in-source the entire funds management function, I don't think that that's essentially going to lead to cost savings," she said.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Insignia’s Master Trust business suffered a 1.9 per cent dip in FUA in the third quarter, amid total net outflows of $1.8 billion.
While the Liberal senator has accused super funds of locking everyday Australians out of the housing market, industry advocates say the Coalition’s policy would only push home ownership further out of reach.
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
As institutional investors grapple with shifting sentiment towards US equities and fresh uncertainty surrounding tariffs, Australia’s Aware Super is sticking to a disciplined, diversified playbook.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
