POWERED BY MOMENTUM MEDIA
Members switching to direct to client funds
The fastest growing funds are the new generation direct to client (D2C) funds, according to an Investment Trends report.
According to the "Investment Trends 2015 Member Sentiment and Communications Report", one in ten super fund members switched funds, the highest rate since 2010.
The report said the clear beneficiaries of the switching activity are the new generation of retail funds that are marketed directly to banking clients.
"Punching above their weight by attracting 12 per cent of switches D2C funds appeal to a significantly younger demographic, with half of those who actively chose one of these funds aged under 30," the report said.
Investment Trend's analyst, Irene Guiamatsia, said existing banking relationships are the strongest driver of the D2C growth.
"Some banks have been very successful at using their retail banking channel to grow a base of young members," she said.
"If they become 'customers for life', like transactional banking customers have been, then these funds could transform the Australian superannuation space quite radically in the next few decades."
The report also found that MySuper funds are set to outperform self-managed super funds (SMSFs) on the back of good overseas investment returns.
Australian shares have provided good returns this year when dividends are taken into account but not as well as overseas markets, the report said.
"Super funds with a significant allocation to unhedged overseas assets have a very strong story due to the strong growth in overseas share markets and the decline in the Australian dollar," the report said.
According to the report, SMSFs had an average exposure to overseas listed equities of seven per cent of assets, far less than MySuper funds which have 31 per cent on average. SMSF cash holdings were much higher at 21 per cent, compared with four per cent.
Recommended for you
As the Australian financial landscape faces increasing scrutiny from regulators, superannuation fund leaders are doubling down on their support for private markets, arguing these investments are not just necessary but critical for long-term financial stability.
Australian Retirement Trust (ART) is leaning on its private asset allocation to help shield members from ongoing market volatility, as its chief economist stresses the importance of long-term thinking and diversification.
AustralianSuper is poised to cement its leadership in the superannuation landscape over the next five years, with fresh research forecasting a sharp shift in the sector’s power dynamics.
The Reserve Bank of Australia (RBA) has warned that significant liquidity pressures could arise in the superannuation sector if multiple risks materialise at once, potentially amplifying shocks in the financial system.
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
31.12 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(%)
