POWERED BY MOMENTUM MEDIA
Cost-cutting likely to result in bland MySuper funds
MySuper products are likely to turn out to be bland asset allocation products, since superannuation funds will struggle to differentiate MySuper funds from their current offerings and their pricing structures.
HLB Mann Judd senior manager of superannuation, Neil Howard, believes many retail super products were built with an enormous range of investment choices with different cost layers attached, and super funds couldn’t use them as a guide on how to create a cost-effective MySuper product.
Super funds were likely to create a MySuper product with an entirely bland asset allocation strategy as a result, Howard said.
It is still unclear as to how the Australian Prudential Regulation Authority will determine what is an appropriate level of cost for a Mysuper product.
Howard said it was currently entirely up to individual trustees to set up their own investment strategy and fee structures for Mysuper.
REST Super chief operating officer Paul Sayer said his company was unclear about the approach the Government would take to MySuper, since the scheme didn’t seem to fit the model of master trust corporate offerings with multiple pricing structures.
REST’s Core Investment Strategy within its industry fund division seemed to “tick the MySuper Boxes” but it was hard to say how they would develop a MySuper solution without knowing how the regulations would be structured, Sayer said.
Recommended for you
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
With private asset valuations emerging as a key concern for both regulators and the broader market, Apollo Global Management has called on the corporate regulator to issue clear principles on valuation practices, including guidance on the disclosures it expects from market participants.
Institutional asset owners are largely rethinking their exposure to the US, with private markets increasingly being viewed as a strategic investment allocation, new research has shown.
Australia’s corporate regulator has been told it must quickly modernise its oversight of private markets, after being caught off guard by the complexity, size, and opacity of the asset class now dominating institutional portfolios.
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(%)
