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
The super fund announced that Gregory has been appointed to its executive leadership team, taking on the fresh role of chief advice officer.
The deputy governor has warned that, as super funds’ overseas assets grow and liquidity risks rise, they will need to expand their FX hedge books to manage currency exposure effectively.
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
