POWERED BY MOMENTUM MEDIA
Handle superannuation rollovers with care: SCT
Trustees need to take particular care with rollovers during periods of market volatility, according to the Superannuation Complaints Tribunal (SCT).
The warning is contained in the Tribunal's latest quarterly bulletin, with the SCT chair Jocelyn Furlan saying trustees need to be aware "that market instability can and does cause problems for some fund members, whether or not they are approaching retirement".
Furlan cited the example of a fund member rolling a benefit from one fund to another and who, on the day he decides to roll out of his fund, checks his balance online and notes he has $20,000 in his account.
"By the time his request is processed - perhaps a week or two later - his account balance has dropped to $19,000 due to negative investment performance," the SCT chair said.
Furlan said the member could then be forgiven for believing he had lost $1,000 and could therefore lodge a complaint with the SCT.
She said in reality the member might not have actually suffered a loss at the hands of his pre-existing fund.
"If the member's new fund's performance was not as good as that of the fund he is leaving, it may well be that, had his rollover request been processed sooner, he would have lost even more," Furlan said.
AUTHOR
Mike Taylor
Recommended for you
The corporate watchdog is preparing to publish a progress report on private credit this September, following a comprehensive review of the rapidly expanding market.
The fund has appointed Fotine Kotsilas as its new chief risk officer, continuing a series of executive changes aimed at driving growth, but NGS Super’s CEO has assured the fund won’t pursue growth for growth’s sake.
AMP Super has taken a strategic stake in Atmos Renewables, funding major battery and wind farm projects to boost Australia’s clean energy transition.
The major superannuation fund is facing legal action from ASIC after allegedly failing to inform the regulator about investigations into serious member service issues.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
