LGsuper has received Australian Prudential Regulation Authority (APRA) approval to offer a default superannuation product when MySuper is implemented next year.
MySuper products will roll out mid-year; however, the fund will launch its new default option on 1 January 2014.
LGsuper said strong governance and cost-effectiveness were hallmarks of its approval.
"We're committed to delivering strong investment returns and a simple fee structure so you enjoy excellent value and more money in retirement," it said.
The fund said MySuper was simply an extension of its strategy.
"LGsuper's successful application for a MySuper licence highlights APRA's confidence in our fund's ability to offer a value-for-money default product for members," it said.
"It also means our employers are assured they can meet the Government's requirements to make contributions into a MySuper product."
Amid a challenging market environment, three super fund CIOs have warned against ‘jumping at shadows’.
The professional body is calling for the annual performance test to transition to a two-metric test, so it better aligns with the overarching duty of super fund trustees to act in the best financial interests of their members.
AustralianSuper, Rest, and HESTA agree on the need to retain and enhance the test, yet they differ in their perspectives on the specific areas that warrant further refinement.
Australia’s second-largest super fund has confirmed it is expanding its presence in the UK following significant investment in the region.
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