POWERED BY MOMENTUM MEDIA
Stronger Super unlikely to address default fund selection
The impending Stronger Super announcements are unlikely to contain changes to the way default superannuation funds are chosen, according to Chant West principal Warren Chant.
Under the current arrangements, default funds are part of the award that covers each workforce. To get onto the default fund list, superannuation funds have to approach either the employer organisations or the union organisations during award negotiations, said Chant.
The problem is that the unions tend to be "hell-bent on superannuation," whereas the employer groups are more concerned about other factors, Chant said.
"In the negotiations, the employer organisations tend to cave in on the funds being nominated in the awards quite early. Superannuation is more dear to the hearts of the union representatives than the employer representatives," Chant said.
As a result, the whole process is very much weighted against the retail funds - and the big criticism is that the way that funds get into the awards has nothing to do with whether they're good funds or not, Chant said.
"There's been a lot of debate about this and [Minister for Financial Services and Superannuation] Bill Shorten said that there will be an inquiry about this next year. I don't think anything's going to come out about this in Stronger Super," Chant said.
Recommended for you
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
As institutional investors grapple with shifting sentiment towards US equities and fresh uncertainty surrounding tariffs, Australia’s Aware Super is sticking to a disciplined, diversified playbook.
Market volatility continued to weigh on fund returns last month, with persistent uncertainty making it difficult to pinpoint how returns will fare in April.
The Association of Superannuation Funds of Australia (ASFA) has called for the incoming government to prioritise “certainty and stability” when it comes to super policy.
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(%)
