POWERED BY MOMENTUM MEDIA
(May-2003) Unisuper uses size to whittle away fees
Size, it seems, really does count. It has certainly helped UniSuper, the largest open defined benefit fund in the TOP 300 survey, negotiate down its investment management fees in a move that has assisted this fund for those employed in tertiary education save nearly $5 million in ongoing charges.
Its large size has also helped it edge its Management Expense Ratio down to 0.34 per cent by the end of June 2002 and CEO Anne Byrne says: “We will look at this and will make sure that we continue to get this down over a period of time.”
But like many of its super fund counterparts, UniSuper’s assets have slumped from $9.8 billion in last year’s survey to $9.5 billion at the end of June 2002, as the effects of volatile investment markets took their toll.
Not surprisingly, Byrne cites managing these turbulent market conditions and communicating market trends to members amongst the fund’s major challenges over the past year.
With this, she says, has come the need to find ways of improving UniSuper’s cost effectiveness and adding value for members.
On the investment side, the fund has moved some of its indexed investments to enhanced passive managers and increased its currency hedging.
It is also focusing on improving technology, examining ways to bolster electronic communications with members and to use web-based financial planning solutions.
The fund, notes Byrne, is also about to establish offices in every major Australian capital city as part of its drive to better serve members and to improve its education and communication.
Looking ahead, she says UniSuper has confirmed its identity as a university and related sector fund and has been targeting organisations in this market segment which have their own corporate funds or are already in other funds.
“Many universities have spun off research companies and other organisations and it is our strategy to capture these,” she says.
And as proof that its offering is attractive, the $30 million Walter and Eliza Hall Institute Super Fund recently chose to roll into UniSuper after conducting a tender that included some of the Australia’s major master trust players.
AUTHOR
Zilla Efrat
Recommended for you
The super fund has significantly grown its membership following the inclusion of Zurich’s OneCare Super policyholders.
Super balances have continued to rise in August, with research showing Australian funds have maintained strong momentum, delivering steady gains for members.
Australian Retirement Trust and State Street Investment Management have entered a partnership to deliver global investment insights and practice strategies to Australian advisers.
CPA Australia is pressing the federal government to impose stricter rules on the naming and marketing of managed investment and superannuation products that claim to be “sustainable”, “ethical”, or “responsible”, warning that vague or untested claims are leaving investors exposed.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
