POWERED BY MOMENTUM MEDIA
TAER could be counterproductive
Pursuing a total annual expense ratio (TAER) regime may prove counterproductive in terms of better informing superannuation fund members, according to industry specialist Brett Elvish.
Elvish, the director of Financial Viewpoint, told the Conference of Major Superannuation Funds that the new TAER regime represented a push down the road of further prescription.
"It places a Band-Aid on something that requires radical surgery," he said.
Elvish said it represented a worrying policy which seemed destined to create further distortions.
He said the whole problem with the TAER regime which had emerged from the Cooper Review was that a little knowledge had proved to be a dangerous thing.
Elvish said there was a need to start again with an alternative disclosure regime and removed capital market distortions.
Sunsuper chief investment officer David Hartley had earlier pointed to the degree to which financial institutions could give the appearance of a fee-free environment, with the common feature being the addition of intermediaries.
He said there was a need for disclosure to focus on net returns and what each of the intermediaries were extracting.
AUTHOR
Mike Taylor
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
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
