POWERED BY MOMENTUM MEDIA
ISA urges Govt to leave MySuper filter
The Industry Super Network (ISA) has called the Government to reconsider leaving in place quality filters that assist employers in selecting default super funds for their employees.
The Government had said it was considering removing the quality filter as proposed by the Productivity Commission, which would require employers to choose from more than 120 MySuper products.
Under the current rules, a quality filter overseen by an expert panel of the Fair Work Commission is applied to MySuper funds, narrowing the choice for employers to between two to 15 funds.
ISA estimated removing the filter would result in an additional $160 million in costs to employers of all sizes and claimed the majority of this would be borne by small businesses.
“Asking any person to select a superannuation fund from over 100 options is absurd. It places unreasonable search costs on employers,” said ISA chief executive officer David Whiteley.
“Employers have consistently stated that they do not want the responsibility of choosing the default super fund for their employees, nor necessarily have the time of expertise.”
ISA has pointed out that retail super funds are advocating for the removal of MySuper quality filters and has cast doubt over the reasons behind their lobbying efforts.
“Retail super funds - typically owned by banks - which have on average under-performed industry super funds, are advocating that quality filters be removed, and the burden of selecting default super funds loaded onto individual employers,” ISA said in a media statement.
“This will reduce competition on long-term net investment returns because the quality filter places an emphasis on long-term returns.”
The industry body pointed to SuperRatings’ figures showing industry super funds have outperformed retail funds by an average of over 1.3 per cent for the year to 31 December 2013.
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
Future Group is set to take on nearly $1 billion in funds under management (FUM) and welcome more than 100,000 new members following two significant successor fund transfers.
Insignia’s Master Trust business suffered a 1.9 per cent dip in FUA in the third quarter, amid total net outflows of $1.8 billion.
While the Liberal senator has accused super funds of locking everyday Australians out of the housing market, industry advocates say the Coalition’s policy would only push home ownership further out of reach.
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
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(%)
