POWERED BY MOMENTUM MEDIA
Funds say MySuper the death of medium-sized funds
The new industry super landscape will be one of large mega-funds and smaller specialist ones, according to respondents from a Buchan Consulting thought leadership series.
Super fund respondents saw the most likely outcome of current legislation as increasing consolidation in the industry.
There would be no room for medium-sized funds in the new industry super environment, with one respondent saying mid-tier funds would spend the next five years looking for merger partners.
The majority said corporate funds would continue to be pressured, particularly as modern awards under Fair Work Australia rolled out.
Respondents did not see the legislation as a threat to member retention. However, funds were bolstering retention programs in response to growth in the self-managed super sector and the rise of the big four banks in superannuation.
Some funds felt they had lessened the self-managed threat by offering similar investment options within the fund, and believed the sector's growth would start to plateau.
Most respondents, and particularly industry fund executives, highlighted the big four as principle threats.
They said as data became more streamlined, banks were seen as natural aggregators across most areas of consumer finance and had more funds to invest in marketing and cross-subsidisation.
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
Senator Andrew Bragg has pressed funds that attended the super summit in the US, demanding answers on costs, compliance with their best financial interests duty, and the decision-making process behind their participation.
A top Treasury official has shed light on the confidential document that circulated among funds this month, telling Senate estimates Treasury is “testing a hypothesis”.
During Senate estimates, it was insinuated that if AustralianSuper had been a retail fund, it would have faced a much larger fine.
Just months after exceeding $4 trillion in assets, Australia’s super industry continues to grow at pace.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
32.45 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
30.48 3 y p.a(%)
