Club Plus Super members are still hoarding cash, according to chief executive Paul Cahill.
The fund's term deposit option, launched last March, has attracted approximately $80 million in cash flows, Cahill said. Despite the improvement in equities' performance, about $50 million in member funds is still in Club Plus' term deposit option.
"I thought with the equity markets rallying [the term deposit option] would flatline, but in the last month it's actually pushing back up again," Cahill said.
The fund recorded an extra $3.5 million invested in term deposits last week, despite Super Ratings' reports that show a 20 per cent annual return for the Australian share market in 2012 compared to cash, which performed the worst of all asset classes.
Cahill said although he could not explain why members chose to retain such high portions of their super savings in cash, its term deposit option allowed members a degree of control as it gave them options regarding the duration and rates offered, rather than a bundling term deposit deal which was offered at intervals throughout the year.
"It gives people a degree of ownership ... they're now actually managing their money inside the walls of a super fund," he said.
The investment option was an instant success with the fund's members, with 20 per cent of its pension members transferring a portion of their balance within the first three months of gaining access.
Club Plus Super will launch its ASX200 direct investment option in July.
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.
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