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
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.63 3 y p.a(%)
3
Fidante Credit Suisse Global Private Equity
32.16 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
5
Plato Global Alpha A
27.76 3 y p.a(%)
