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told last week’s Fund Executives Association Limited(FEAL) conference that the superannuation industry had an old and outdated infrastructure that raised the question of whose interest were really being served by the resultant “expensive machine”.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
Recommended for you
A hawkish post-meeting RBA has cast doubt over the possibility of another rate cut in 2025.
Super funds are being urged to do more to protect older women from financial insecurity as life events widen retirement gaps.
The central bank has announced the official cash rate will remain at 3.6 per cent following higher-than-expected inflation figures.
Equip Super has appointed Michelle Cheong as chief risk officer, strengthening its governance framework with nearly two decades of industry experience.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Loftus Peak Global Disruption Fund Hedged
118.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
75.00 3 y p.a(%)
3
DomaCom DFS Mortgage
67.30 3 y p.a(%)
4
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
61.11 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
60.93 3 y p.a(%)
