MySuper 'unnecessary', says Local Govt Super

MySuper is "unnecessary" because superannuation funds already offer low-cost products, according to Local Government Super (LGS) chief executive Peter Lambert.

The fierce competition in the industry has already dictated a move to low-fee, simple investment options within the industry, he said.

"The industry has evolved. Not only are the industry funds offering low-cost products, but now even the retail funds have entered into that," Lambert said.

Lambert was more enthusiastic about the SuperStream changes, which he said would benefit the industry by making the contributions process much more efficient. 

However, he said a better approach by the Government would have been to set a deadline (say, in three years' time) at which point all contributions must be handled electronically.

LGS continues to champion environmental, social and governance (ESG) issues.

"Local government is the heart of sustainability - it looks after water and land usage. It makes it easier to take a leadership position when you know there isn't going to be a concerted backlash from your members," said Lambert.

The fund has put its money where its mouth is by taking a short position on various stocks over the years. 

"We had shorted out News Limited in our portfolio [over the past three years], simply because it failed on some ESG governance standards," he said.

Despite taking a loss on the position "as markets took off", the short on News Limited turned out to be vindicated after the phone hacking scandal erupted last year and the company's share price plummeted.

LGS is currently shorting Aristocrat (a poker machine manufacturer), the timber company Gunns and Seven Group, according to Lambert. 

In a decision made last month, the LGS board gave the green light to more frequent changes to the company's investment portfolio, via dynamic asset allocation.