The introduction of MySuper represented one of the greatest wastes of time and money ever to be encountered by the Australian superannuation industry, according to Deloitte partner, Russell Mason.
Participating on a panel at Super Review’s Future of Superannuation Conference in Melbourne, Mason said he believed the money and time had been wasted because, ultimately, it had simply amounted to a rebadging of existing default funds.
However, his fellow panellist, Rice Warner chief executive, Andrew Boal disagreed with Mason arguing that, if nothing else, MySuper had succeeded in reducing fees.
Boal said he, himself, was a member of a MySuper fund and he had remained within it because he believed it was appropriate to his needs.
Grow Super head of strategy, Adam Gee said that while he agreed that MySuper had served to contain fees, he believed it had nonetheless fallen sort in many other aspects.
The panel had been asked whether the Cooper Review push for MySuper had failed the superannuation industry in the context of lowering the need for member engagement.
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.
While some superannuation funds have gone down the route of internalisation, others say they favour ‘smart partnering’ with external managers for diversification appeal.
Russell Mason is spot on with his comment & I could not agree more. That Andrew Boal should disagree is exactly the response I would expect from Rice Warner. A little more practical involvement in the day to day administration might change the theoretical views that are so often expressed by Rice Warner.
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