POWERED BY MOMENTUM MEDIA
Fee cap prompts double launch for Energy Super
Energy Super will launch an investment option that replicates its MySuper investment strategy as a way around the Federal Government's removal of fee caps on defaults.
Energy Super chief executive Robyn Petrou said the fund had been forced to launch a MySuper and a choice product with the same investment strategy in order to continue to offer the fee cap to members with higher account balances.
She said Energy Super would contact members with higher balances over the next 6-12 months to discuss the best options for individuals.
"There are some that should fall into the MySuper product and there are some that will need to have a think about whether they need to be in there or not - and those are the people that we will be focusing on," she said.
Last week at a Parliamentary Joint Committee meeting, the Association of Superannuation Funds of Australia (ASFA) lobbied against the fee cap, with chief executive Pauline Vamos saying it was "not a good policy".
She said members should be treated equally and equitably, which did not mean every member paid the same amount. Trustees needed the flexibility to ensure fees were equitable and if appropriate, implement a cap on fees, Vamos said.
"Otherwise, we are going to have the bizarre situation - and it was confirmed by one fund yesterday - that they will feel they have an obligation to contact all of their larger account balance members in their MySuper products and encourage them to move to a choice product," 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
The central bank has served up a disappointment for punters on Melbourne Cup Day.
The superannuation industry will be judged by its member services rather than how effectively it accumulates wealth, according to Stephen Jones.
The profit-to-member super funds are officially operating as a merged entity, set to serve over half a million members.
Super Review announced 21 winners at the annual Super Fund of the Year Awards, including the recipient of the prestigious Fund of the Year Award.
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
32.57 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
32.09 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
27.42 3 y p.a(%)
