POWERED BY MOMENTUM MEDIA
Industry funds should “leverage” anti-retail sentiment
Industry superannuation funds need to make sure they learn from the mistakes of retail funds, and ensure that the dodgy governance practices uncovered in the latter by the Banking Royal Commission don’t seep into profit-for-member funds.
This was the message Australian Institute of Superannuation Trustees (AIST) chief executive, Eva Scheerlinck, passed on in her opening address at the Conference of Major Super Funds on the Gold Coast this morning.
She also noted that the “Royal Commission had an impact” on out-flows from retail funds, with their industry counterparts seeing record in-flows as both individuals and employers made the switch following “outrage” at the Commission’s discoveries. Scheerlinck encouraged industry funds to leverage this changing sentiment.
“While the Royal Commission hearings showed that retail funds failed profoundly on governance issues,” the CEO also said. “All of us need to be aware that the practices that became common in the retail sector could seep into the industry sector if they’re not careful, so funds needed to ensure they practiced good governance.
“Improving board governance doesn’t require a million dollars of spending on consultants or policy redrafting,” Scheerlinck told delegates, but rather needs trustees to know their funds and know their obligations under the Superannuation Industry (Supervision) Act.
“We don’t need more laws or regulation, we just need to remain true to our purpose and do what is right.”
It’s worth noting that in the aftermath of the Royal Commission superannuation hearings, many in the broader industry felt that Senior Counsel assisting the Commission, Michael Hodge QC, had let industry funds off lightly where governance and spending were concerned.
Recommended for you
The Super Members Council has outlined a bold reform plan to boost productivity, lift retirement savings, and unlock super’s full potential.
Women beginning their careers in 2025 could retire with hundreds of thousands of dollars more in super due to the 12 per cent super guarantee rate, HESTA modelling shows.
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.
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
44.46 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(%)
