POWERED BY MOMENTUM MEDIA
Industry rises to consolidation challenges
A superannuation fund chief executive has questioned the need for one of the key recommendations of the Cooper Review - the further consolidation of superannuation funds.
The chief executive of legalsuper, Andrew Proebstl told an Australian Institute of Superannuation Trustees (AIST) conference that significant consolidation had already occurred without the need for Government interference.
He said there had been a 90 per cent reduction in the number of super funds in Australia over the last 15 years.
Proebstl also pointed to a 50 per cent reduction having occurred in just the past five years.
"So market forces have been successful in achieving consolidation," he said. "The industry has already risen to the challenges."
Proebstl also questioned the value of fund mergers in terms of lowering overall costs.
He said data had revealed little difference between the member expense ratio of mega funds and medium sized funds.
Proebstl added there was plenty of evidence that medium sized funds were better focused and capable of delivering what their members want.
Recommended for you
The profit-to-member super fund’s MySuper default option has returned 9.85 per cent for the financial year 2024–25.
Colonial First State (CFS) has announced solid double-digit returns for its MySuper balanced and growth equivalent funds during the financial year.
The super fund’s Future Saver High Growth option delivered an 11.9 per cent return for the financial year 2024–25, on the back of a diversified portfolio and actively managed investment strategy.
HESTA has delivered a 10.18 per cent return for its MySuper Balanced Growth option in the 2024–25 financial year, marking the third consecutive year of returns above 9 per cent for the $80 billion industry fund’s default investment strategy.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
