POWERED BY MOMENTUM MEDIA
Tony Abbott wrong on industry super funds, says AIST
Australian Institute of Superannuation Trustees (AIST) chief executive Fiona Reynolds has taken Opposition leader Tony Abbott to task over his criticism of industry funds.
Reynolds said Abbott needed to "get his facts straight" and should spend more time focusing on what Australians expect from the nation's super and retirement income policies.
"Mr Abbott's view on super seems to be driven by ideology rather than what's really going to benefit Australians in retirement," Reynolds said.
"The Coalition didn't support super in the beginning … and now they want to dismantle the very funds that are serving their members so well," she said.
Reynolds branded Abbott's statements "ludicrous" and pointed to AIST's research to disprove his labelling of industry funds as "union-controlled".
According to AIST research, industry funds adhered to their legal obligation to employ 50 per cent employee-appointed and 50 per cent employer-appointed directors.
Reynolds also pointed to the lower wages of industry fund directors and the Australian Prudential Regulation Authority's (APRA) 2008 figures showing the higher return on industry versus retail funds, as factors which helped dispel Abbott's "myth".
She pointed to APRA research that showed more than half of the directors for industry funds were members of their own funds, while only one in five retail trustee directors were members of their funds.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
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
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
