POWERED BY MOMENTUM MEDIA
Choice products unlikely to be included in performance test
The possibility of including Choice products in the super performance test “isn’t relevant” to the Your Future, Your Super bill, according to Minister for Superannuation, Financial Services, and the Digital Economy Jane Hume, as members select their own investments.
Industry Super Australia (ISA) requested an amendment to the inclusion of Choice products in the performance test, who said the sector was ‘littered with high-fee charging duds’.
This was further broached in the Senate today by Senator Rex Patrick in the second reading of the Your Future, Your Super (YFYS) bill.
The move was rejected by Hume, who said the performance test “isn’t relevant” for those Choice products where the member selected their own investments or were often advised clients.
If these type of products were included, she said, this would “diminish the usability” of the performance comparison tool.
“It is about looking at the performance of those funds which people have gone into unwittingly, those funds which they are languishing in unwittingly,” Hume said.
She said some 90% of Australian Prudential Regulation Authority (APRA) regulated accumulation funds were subject to the performance test and there was an intention to extend this in the future. From 1 July, 2022, it also hoped to include trustee-directed products.
Hume also rejected any requests to delay the bill as this would delay the implementation of the YFYS comparison tool and allow for more multiple accounts to be created in the interim.
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
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
73.88 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
Only the uninformed idiots at ISA could not see how illogical it would be to include super plans where the member is either choosing the investments in the plan themselves or who is using an adviser to assist them to do this. That would be like comparing apples with carrots. I'm surprised these intellectually challenged morons didn't also try to get SMSFs included on these performance tables. Way too much self-interest by ISA again.
Add new comment