POWERED BY MOMENTUM MEDIA
Small funds most impacted by Budget changes
Smaller superannuation funds are likely to be more exposed than others to the Government’s Budget superannuation changes dealing with accounts with balances lower than $6,000, according to specialist ratings house, SuperRatings.
It said that smaller funds had nearly 45 per cent more low balance accounts as a proportion of total membership than the average fund, leaving them most exposed to the Federal Government’s cap on fees for low balance accounts.
The findings flow from a SuperRatings assessment of the impact on super funds resulting from the Federal Government’s proposed three per cent cap on fees for super accounts with balances lower than $6,000.
The SuperRatings analysis revealed that smaller funds (defined as funds with less than $2 billion of net assets) had around 38 per cent of total accounts with a balance lower than $6,000, compared to 26 per cent for all funds and 22.5 per cent for large funds.
It said the prevalence of low balance accounts within smaller super funds was even greater below the $4,000 threshold with nearly 34 per cent of all accounts held within smaller funds having balances below $4,000 compared to 22 per cent for the median and 19 per cent for the largest funds.
The SuperRatings findings follow on from a Rice Warner analysis that the level of cross-subsidisation within industry funds would mean they were more exposed to the insurance within superannuation changes contained in the Budget.
Recommended for you
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
With private asset valuations emerging as a key concern for both regulators and the broader market, Apollo Global Management has called on the corporate regulator to issue clear principles on valuation practices, including guidance on the disclosures it expects from market participants.
Institutional asset owners are largely rethinking their exposure to the US, with private markets increasingly being viewed as a strategic investment allocation, new research has shown.
Australia’s corporate regulator has been told it must quickly modernise its oversight of private markets, after being caught off guard by the complexity, size, and opacity of the asset class now dominating institutional portfolios.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
