POWERED BY MOMENTUM MEDIA
Survey confirms technology platforms the key to super admin
Just weeks out from the Australian Competition and Consumer Commission (ACCC) making its final decision on the eligibility of Link to bid for Pillar Administration, a Super Review survey has confirmed superannuation funds attribute high importance to the durability of administration technology platforms.
The survey, conducted during the recent Association of Superannuation Funds of Australia conference, asked respondents to rank what they regarded as most important when selecting an administration provider, with technology platform far outweighing price as the key determinant.
Just as importantly, respondents indicated that they placed a high price on the quality of products and services delivered by administrators, as well as the quality of staff.
Thirty-five per cent of respondents ranked technology platform as being the most important consideration when selecting an administrator, with 25.5 per cent ranking product and service, and 20.2 per cent ranking the quality of staff.
The findings of the survey are important in circumstances where the ACCC's preliminary findings with respect to competition in the superannuation administration market identified the cost of pursuing appropriate technology platforms as being a key barrier to entry.
It stated that the ACCC understands that a superannuation administration services (SAS) provider needs to either have its own proprietary IT record keeping platform (such as Link does), or have access to one through a third party licensing arrangement (like Pillar does) to be able to provide SAS.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
2
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
3
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
