POWERED BY MOMENTUM MEDIA
Allow differential pricing in MySuper: Aon Hewitt
The single price in MySuper products could mean that older members using lifecycle strategies could end up subsidising younger superannuation members, according to Aon Hewitt.
In its response to the Australian Prudential Regulation Authority's discussion paper on the Prudential Standards for Superannuation, Aon Hewitt said the single price was MySuper's "fundamental flaw".
Aon Hewitt chief investment officer Janice Sengupta said that because lifecycle strategies tend to favour fixed income as the member nears retirement, there are lower costs associated with the member in question.
"If the fund has to charge all members the same investment management fee, then older members would be subsidising younger members in the more growth oriented strategies," Sengupta said.
The Government should allow for different pricing within MySuper products to take into account the different costs of each investment strategy, according to Aon Hewitt.
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
Private market assets in super have surged, while private debt recorded the fastest growth among all investment types.
The equities investor has launched a new long-short fund seeded by UniSuper, targeting alpha from ASX 300 equities using AI insights.
The fund has strengthened efforts to boost gender diversity, targeting 40:40:20 balance across its investment teams by 2030.
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
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(%)
