AvSuper updates member investment objectives

AvSuper has updated the investment objectives of two options in light of improved expected long-term returns and made changes to its advice provision to members.

The fund, which is in the process of merging with Australian Retirement Trust, amended its conservative and stable growth options on 1 November.

For super members in the conservative option, the objective has changed from CPI + 0.5 per cent over rolling 10-year periods to CPI + 1.5 per cent over rolling 10-year periods.

In the stable growth option, the super member objective has changed from CPI + 1.5 per cent over rolling 10-year periods to CPI + 2.0 per cent over the same time horizon.

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Members in the income stream option have seen objectives in the conversative option increase from CPI + 1 per cent to CPI + 2.0 per cent over rolling 10-year periods and from CPI + 2.0 per cent to CPI + 2.5 per cent in the stable growth option over rolling 10-year periods.

“These changes reflect revised forecasts for expected long-term returns across asset classes particularly cash and fixed interest,” the fund said.

It also announced it has decided to cease providing personal financial advice to members from 29 February 2024 in advance of the merger with ART.

“AvSuper’s superannuation and pension products will cease on transition of the AvSuper membership to ART (forecast to occur on 1 May 2024) pursuant to a successor fund transfer (SFT). This means the time horizon for providing personal financial advice about AvSuper is limited,” it said.

“We have decided to cease providing personal financial advice with effect from 29 February 2024.
“AvSuper will continue to provide general financial advice and factual information to members until the proposed SFT date.”

Earlier this month, the fund provided an update on the ART merger that is due to complete on 1 May 2024.
Michael Sykes, chief executive of AvSuper, said: “Between now and May, we are running planning workshops with ART and its administrator Mercer to ensure the transition of services and systems goes smoothly. We are also undertaking workshops around the transition of our assets.

“The logistics of merging a fund are quite significant, we are exercising good governance in working through all steps carefully and diligently. There are monthly steering committees, workstream meetings, it is a key focus as well as keeping business as usual flowing as usual.

“We will be working with ART to work out suitable transition options for our members. We are attempting to map our options with their options with similar risk and return characteristics and asset classes.”