POWERED BY MOMENTUM MEDIA
Super trustees back self-regulation on balance erosion
Most superannuation fund trustees and executives believe adherence to the insurance inside superannuation fund code of conduct should have been made compulsory.
Just weeks after the final report of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, a survey conducted by Super Review at the recent Conference of Major Superannuation Funds (CMSF) revealed strong support for a compulsory and enforceable code.
Importantly, the survey’s findings came at the same time as the Australian Institute of Superannuation Trustees (AIST) used the CMSF conference to signal a move to a compulsory code.
The Super Review survey revealed 76.6 per cent of respondents believed the code should be compulsory, with 23.3 per cent suggesting that it should remain voluntary.
However, the survey also revealed serious misgivings among respondents to the Government’s move to make insurance inside superannuation ‘opt-in’ for those aged under 25 and those with balances at or below $6,000.
It revealed just over 63 per cent of respondents were opposed to the Government’s move, albeit that many were concerned about the manner in which insurance premiums were eroding member balances.
Asked whether they believed something needed to be done about the way in which insurance premiums eroded superannuation member balances, 73 per cent of respondents argued for measures to eliminate the balance erosion.
The survey results appear to confirm a strong view that the industry should self-regulate with respect to minimising fee erosion rather than having the Government impose legislation.
Recommended for you
The profit-to-member super fund’s MySuper default option has returned 9.85 per cent for the financial year 2024–25.
Colonial First State (CFS) has announced solid double-digit returns for its MySuper balanced and growth equivalent funds during the financial year.
The super fund’s Future Saver High Growth option delivered an 11.9 per cent return for the financial year 2024–25, on the back of a diversified portfolio and actively managed investment strategy.
HESTA has delivered a 10.18 per cent return for its MySuper Balanced Growth option in the 2024–25 financial year, marking the third consecutive year of returns above 9 per cent for the $80 billion industry fund’s default investment strategy.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
