POWERED BY MOMENTUM MEDIA
Small funds most impacted by Budget changes
Smaller superannuation funds are likely to be more exposed than others to the Government’s Budget superannuation changes dealing with accounts with balances lower than $6,000, according to specialist ratings house, SuperRatings.
It said that smaller funds had nearly 45 per cent more low balance accounts as a proportion of total membership than the average fund, leaving them most exposed to the Federal Government’s cap on fees for low balance accounts.
The findings flow from a SuperRatings assessment of the impact on super funds resulting from the Federal Government’s proposed three per cent cap on fees for super accounts with balances lower than $6,000.
The SuperRatings analysis revealed that smaller funds (defined as funds with less than $2 billion of net assets) had around 38 per cent of total accounts with a balance lower than $6,000, compared to 26 per cent for all funds and 22.5 per cent for large funds.
It said the prevalence of low balance accounts within smaller super funds was even greater below the $4,000 threshold with nearly 34 per cent of all accounts held within smaller funds having balances below $4,000 compared to 22 per cent for the median and 19 per cent for the largest funds.
The SuperRatings findings follow on from a Rice Warner analysis that the level of cross-subsidisation within industry funds would mean they were more exposed to the insurance within superannuation changes contained in the Budget.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
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
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
