POWERED BY MOMENTUM MEDIA
Industry funds more cost-effective on MySuper
Industry fund-backed MySuper products will still be cheaper than those produced by the retail banks, according to new research released by specialist superannuation ratings house SuperRatings.
The SuperRatings analysis also claims industry funds are likely to transfer members to the cheaper MySuper environment more quickly.
In an analysis of the evolving MySuper fee environment released today, SuperRatings has pointed to average fees in the retail sector dropping from $932 a year to just $593 a year on an account balance of $50,000, but notes that this compares to the not-for-profit funds where the average fee on the same balance would be $498.
Further, SuperRatings chief executive Jeff Bresnahan claimed that retail funds would take the longest to transition members whereas the “great majority” of not-for-profit funds “have indicated that members will be transferred immediately”.
The SuperRatings research suggested that many Australians were set to save over 30 per cent a year on their superannuation fees, but that the implementation time-frames being allowed on MySuper meant that in many cases these savings would not be experienced before 1 July, 2017.
“The sting in the tail for many Australians is the fact that funds do not have to transfer their members to the cheaper MySuper options until 1 July 2017,” the analysis said.
Recommended for you
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.
Market volatility continued to weigh on fund returns last month, with persistent uncertainty making it difficult to pinpoint how returns will fare in April.
The Association of Superannuation Funds of Australia (ASFA) has called for the incoming government to prioritise “certainty and stability” when it comes to super policy.
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(%)
