The current system of default funds under modern awards works well and should not be opened up to unfettered competition, according to Australia Institute of Superannuation Trustees (AIST) chief executive, Tom Garcia.
Opening the Conference of Major Superannuation Funds (CMSF) on the Gold Coast, Garcia said the not for profit funds would be reinforcing the value of the existing default super arrangements and the dangers inherent in any change.
His comments have come at the same time as the Financial Services Council has increased its calls for the Government to change the default fund arrangements to allow all eligible MySuper funds to be available for selection as default funds and for the removal of the Fair Work Commission from the process.
Garcia said that despite what the critics might say employers were afforded choice under the existing default funds regime and those funds which are available have been identified as best suited to meeting the best interests of members.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
A member of the super fund has approached ASIC to investigate potentially misleading or deceptive representations by UniSuper regarding the holdings of its sustainable portfolios.
The median growth fund delivered 1.9 per cent in March, adding to the “stunning” rally that has seen super funds gain 11 per cent since November.
Vanguard has affirmed its support for the current super performance test, emphasising the importance of keeping the process straightforward.
Add new comment