Superannuation fund boards which decide to pursue mergers should be focused on delivering their members reduced fees and improved services.
That is the bottom line of a survey conducted by Super Review during the recent Conference of Major Superannuation Funds (CMSF) which found that while a sizeable majority of superannuation fund trustees and executives expected fund mergers to continue, they believed members wanted positive outcomes to result.
And highest among the outcomes from mergers was the desire for reduced fees, with nearly 60 per cent of respondents stating such an objective as being the first or second most important objective.
The survey found that 35.8 per cent of respondents rated reduced fees as being most important with 22.6 per cent rating it as the second most important factor.
The other factor regarded as justifying fund mergers was greater security, followed by enhanced services.
Interestingly, improved investment performance rated lowest amongst the benefits flowing from a fund merger.
The survey revealed that 83 per cent of respondents believed fund mergers would continue to occur at their present pace, while a further 11.3 per cent believed there would be a tapering in current merger activity levels.
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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