POWERED BY MOMENTUM MEDIA
TAER could be counterproductive
Pursuing a total annual expense ratio (TAER) regime may prove counterproductive in terms of better informing superannuation fund members, according to industry specialist Brett Elvish.
Elvish, the director of Financial Viewpoint, told the Conference of Major Superannuation Funds that the new TAER regime represented a push down the road of further prescription.
"It places a Band-Aid on something that requires radical surgery," he said.
Elvish said it represented a worrying policy which seemed destined to create further distortions.
He said the whole problem with the TAER regime which had emerged from the Cooper Review was that a little knowledge had proved to be a dangerous thing.
Elvish said there was a need to start again with an alternative disclosure regime and removed capital market distortions.
Sunsuper chief investment officer David Hartley had earlier pointed to the degree to which financial institutions could give the appearance of a fee-free environment, with the common feature being the addition of intermediaries.
He said there was a need for disclosure to focus on net returns and what each of the intermediaries were extracting.
AUTHOR
Mike Taylor
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
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
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
