POWERED BY MOMENTUM MEDIA
If you can't beat SMSFs, join them
Instead of viewing self-managed super funds (SMSFs) as the enemy, industry super funds should start to better understand their appeal and offer similar products, according to Deloitte partner Russell Mason.
Speaking at a roundtable conducted by Super Review, Mason said if industry funds wanted to retain members and stop the outflow to SMSF products, they needed to start offering better alternatives.
He said outflow of members from industry funds and other super entities regulated by the Australian Prudential Regulation Authority (APRA) reflected the attitude of those making the move, but also the amount of investments into the SMSF sector by the big four banks and AMP.
"The big four banks - and you add Macquarie and AMP - have all got substantial entities they own, or are involved with, that benefit from the self-managed fund industry," he said.
"They offer investment platforms, they offer administration etc. From my point of view clearly there's a million Australians with roughly $500 billion in assets that see SMSFs as offering something more than retail or industry funds can offer."
Earlier the chairman of the Australian Institute of Superannuation Trustees (AIST) and chairman of Media Super, Gerard Noonan, expressed concern at the level of outflows from his fund to SMSFs and suggested it represented a problem for other industry funds and APRA-regulated entities.
Noonan said he was concerned that some of the outflows were occurring as a result of the provision of improper advice.
"I do think that there's some clearly improper advice occurring here because one of the things that we do notice of the cohort of people who leave our fund, well over half have got under $30,000 in their account," he said.
"We do detect that there's some improper advice going to a group of these people who are unswayable, even though they've got a relatively small amount in their superannuation account, because they've decided to make the move."
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
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
Big business has joined the chorus of opposition against the proposed Division 296 tax.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
