POWERED BY MOMENTUM MEDIA
Funds battle SMSFs with direct investment options
Telstra Super will join a growing number of superannuation funds to release direct investment options in a bid to stem the flow of members leaving to start self-managed super funds (SMSFs).
The fund plans to make term deposits and direct equities available to members from next February.
DIY funds and SMSFs have nabbed 71 per cent of member funds due to Telstra Super's high average account balances, the fund's chief financial officer Christina Liosis said.
Club Plus Super will launch its direct equity offer in six months, after the success of its term deposit launch in March.
Club Plus chief executive Paul Cahill said $7 million in funds flowed to the term deposit platform from accumulation members over one week, while 20 per cent of pension members had transferred funds in the first three months of the product launch.
AustralianSuper's product manager of investments Paul Souter said direct equities was one of the fund's "best kept secrets".
He said AustralianSuper's ASX200 offer had been available for about 12 years and had attracted 8,000 members and $190 million in funds, with limited or no advertising.
The fund has redesigned its offer and introduced term deposits, with the prime driver being the flight to SMSFs, according to Souter.
He said SMSF rollover represented about 5 per cent of the fund's members and 15 per cent of funds, and while AustralianSuper had developed a "compelling alternative" to SMSFs, he was not convinced it was the complete solution to the SMSF problem.
CoreData's Direct Investing report released in July found 48.7 per cent of respondents would be interested in investing in specific Australian shares and 47.3 per cent in terms deposits through their superannuation fund. A further 26.6 per cent would be interested in investing directly in pension annuities, it said.
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 two funds have announced the signing of a non-binding MOU to explore a potential merger.
The board must shift its focus from managing inflation to stimulating the economy with the trimmed mean inflation figure edging closer to the 2.5 per cent target, economists have said.
ASIC chair Joe Longo says superannuation trustees must do more to protect members from misconduct and high-risk schemes.
Super fund mergers are rising, but poor planning during successor fund transfers has left members and employers exposed to serious risks.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
88.01 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.24 3 y p.a(%)
4
Pengana High Conviction Equities B
40.36 3 y p.a(%)
5
Pengana High Conviction Equities A
40.34 3 y p.a(%)
