CareSuper chief executive Julie Lander has warned there is a big difference between a member controlling their own money compared to administering their own fund.
The complexity of reporting, compliance requirements and high costs associated with self-managed super funds (SMSFs) could result in greater financial pressures for retirees.
"Many investors attracted to establishing an SMSF have little understanding of ongoing compliance costs and the severe fines they potentially face if they don't comply with a raft of complex regulatory requirements," Lander said.
Adviser fees pushed costs up even further, according to Lander.
"What brings this cost into question is that a majority of SMSFs are invested in cash, term deposits and Australian equities," she said.
"These investment options are available via CareSuper at a fraction of the cost."
The not-for-profit super fund launched a direct investment option last December in response to the needs of investors who did not want the burden of trustee obligations.
The ASX300 investment option will be expanded to include term deposits, exchange-traded funds and listed securities this year.
Other funds to incorporate direct investment options include Club Plus Super, AustralianSuper, legalsuper and Telstra Super.
Australia’s second largest super fund has added thermal coal companies to its list of investment exclusions.
The fund has expanded its corporate superannuation solutions to partner with Australian businesses of all sizes.
The chief executive of Aware Super anticipates a significant shift in how ESG factors will influence portfolio values in the next six years, surpassing the changes witnessed in the past two decades.
In a recent statement, shadow assistant minister for home ownership and Liberal senator for NSW, Andrew Bragg, accused ‘big super’ of fabricating data attributed to the Reserve Bank of Australia to push their agenda.
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