POWERED BY MOMENTUM MEDIA
Club Plus members hoard cash despite market rally
Club Plus Super members are still hoarding cash, according to chief executive Paul Cahill.
The fund's term deposit option, launched last March, has attracted approximately $80 million in cash flows, Cahill said. Despite the improvement in equities' performance, about $50 million in member funds is still in Club Plus' term deposit option.
"I thought with the equity markets rallying [the term deposit option] would flatline, but in the last month it's actually pushing back up again," Cahill said.
The fund recorded an extra $3.5 million invested in term deposits last week, despite Super Ratings' reports that show a 20 per cent annual return for the Australian share market in 2012 compared to cash, which performed the worst of all asset classes.
Cahill said although he could not explain why members chose to retain such high portions of their super savings in cash, its term deposit option allowed members a degree of control as it gave them options regarding the duration and rates offered, rather than a bundling term deposit deal which was offered at intervals throughout the year.
"It gives people a degree of ownership ... they're now actually managing their money inside the walls of a super fund," he said.
The investment option was an instant success with the fund's members, with 20 per cent of its pension members transferring a portion of their balance within the first three months of gaining access.
Club Plus Super will launch its ASX200 direct investment option in July.
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
The Future Fund’s CIO Ben Samild has announced his resignation, with his deputy to assume the role of interim CIO.
The fund has unveiled reforms to streamline death benefit payments, cut processing times, and reduce complexity.
A ratings firm has placed more prominence on governance in its fund ratings, highlighting that it’s not just about how much money a fund makes today, but whether the people running it are trustworthy, disciplined, and able to deliver for members in the future.
AMP has reached an agreement in principle to settle a landmark class action over fees charged to members of its superannuation funds, with $120 million earmarked for affected members.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
