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Fund managers the tail wagging super dog
The funds management industry has again been described as the tail wagging dog of the Australian superannuation sector.
Towers Watson's global head of investment content, Roger Urwin, told last week’s Fund Executives Association Limited(FEAL) conference that the superannuation industry had an old and outdated infrastructure that raised the question of whose interest were really being served by the resultant “expensive machine”.
“We do have a funds industry that wags the retirement industry dog,” he said.
Referring to the recommendations that flowed from the Cooper Review, Urwin said Cooper might not have played every card skilfully, but did well with a weak hand.
“We have many investment products where the costs are too great to come out ahead for the value delivered,” he said. “We account too optimistically and self-servingly for the skills and talents of certain investment segments.
“In doing so, we all too often serve the interests of the industry, not the member,” he said.
AUTHOR
Mike Taylor
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