POWERED BY MOMENTUM MEDIA
Members ‘unlikely’ to remain in poorly-performing super funds: Grattan
While there is a possible danger of members remaining in poorly-performing super funds, this is the better option than them accumulating multiple accounts and paying multiple fees.
That is the bottom line from the Grattan Institute on the ‘stapling’ changes to superannuation which were announced in this week’s Budget.
Treasurer Josh Frydenberg announced super members would be ‘stapled’ to a super fund to avoid people accumulating multiple super fund accounts when they changed jobs.
However, superannuation executives were concerned millions would be left stapled to an underperforming fund for their working lives and relying on disclosure to establish if that fund was an underperformer.
Speaking to Money Management, Danielle Wood, chief executive of the Grattan Institute, acknowledged people may hold off from proactively moving out of a poor performer but it was unlikely to happen.
“There is a danger but it is the lesser of two evils compared to people having multiple super funds and paying multiple fees on them.
“It is always hard to change things but, on balance, this will lead to better outcomes,” she said.
“People tend to start off their careers in a big fund that performs better so it is unlikely people will be stuck in a bad performer.”
Senior superannuation industry executives have already suggested super funds which cover young people early on their careers such as REST and HostPlus stood to benefit from the stapling changes.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
Governor Bullock took a more hawkish stance on Tuesday, raising concerns over Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
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
31.62 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
29.60 3 y p.a(%)
