POWERED BY MOMENTUM MEDIA
More member information needed
Larger superannuation funds, particularly industry funds, are likely to rely more on digitally-generated advice but need to know more about their members to do so, according to a Rice Warner analysis.
The analysis said the reliance, augmented by human-based advice, would be a means to improve and expand the fund's existing advisory services and engagement with members.
Rice Warner said digitally-based advice would be the next logical step as most members relied on the automatic rebalancing of premised diversified portfolios designed to suit their broad risk classification at a generally low cost.
"Super funds are likely to seek further development of the self-directed and guided advice tools... These include calculators covering adequacy of retirement savings, contribution optimisation, insurance needs and risk profiling," the analysis said.
"The calculators are designed to let members know their current position and how to improve that situation; effectively providing a call to action."
However, the research house said many industry funds did not know enough about their members to provide personal robo-advice.
"Many industry funds, do not know their members' incomes, total super and non-super assets, marital status, partner's assets and superannuation, liabilities or financial goals," it said.
"The introduction of robo-advice will provide an opportunity for super funds to get to know and segment their members much better."
While Rice Warner said in theory robo-advice should provide a consistent standard of advice, the quality would depend on the quality and appropriateness of the information and rules programmed into the software.
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
