POWERED BY MOMENTUM MEDIA
Super system still too complex for many members
There is still education that needs to be done for superannuation fund members to help them understand the stapling changes, according to Allan Gray.
Stapling was introduced last year and would see members ‘stapled’ to one super fund for their working life, unless they opted to change, in order to reduce the number of duplicate accounts.
Speaking to Super Review, JD de Lange, chief operating officer at Allan Gray, said he was concerned stapling would give the idea that superannuation was a simple choice.
“A super fund is just a tool and the ability to use it depends either on your research or going to get advice. There’s no easy way to do this and I’m actually very scared that people will try and simplify this too much.
“I’ll be surprised if people understand the concept of stapling, superannuation is already a very complex product.
“There’s a lot of education that needs to be done, there’s no understanding of super funds among kids when they start work, they don’t know what to do or where to start. And I think that’s a puzzle to solve.”
His colleague, head of product, Deborah Barr, added members would likely still opt for multiple super funds over their lifetime as their needs changed.
“You may stick to the first fund for the first few years but ultimately, as you grow and mature, people will be interested and engaged in their own savings and exercise choice.”
The firm’s superannuation product, which was launched in 2018, offered exposure to managed funds, listed securities, term deposits and managed account model portfolios and said it was designed to transition through a member’s lifetime. For advisers, they were able to build model portfolios and set up managed accounts within the product.
Barr said: “You need to find something that enables you to have a choice and allows you to move around with your risk appetite as your needs change at different life savings.
“It’s a cradle to grave solution whether you are in accumulation phase, transitioning to retirement or going into a pension.”
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
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(%)
