Q WHAT IS THE FU­TURE OF RE­TAIL SU­PER FUNDS AF­TER WHAT WAS UN­COV­ERED BY THE ROYAL COM­MIS­SION?

Money Magazine Australia - - SUPERANNUATION OUTLOOK -

Re­tail funds copped a shel­lack­ing. Com­ing so soon af­ter the trounc­ing that some re­tail MySu­per funds copped in the Pro­duc­tiv­ity Com­mis­sion’s May 2018 re­port it was a one-two punch like no other.

So where to now for re­tail su­per? It says much that sev­eral funds we’ve been visit­ing lately have told us they are de­ter­mined to get back to run­ning their su­per funds for their mem­bers, not as a source of as­sets for their funds man­age­ment busi­nesses.

It’s why so many of them are di­vest­ing their in­vest­ment man­age­ment di­vi­sions – they want to in­vest with the best money man­agers and not be bound by the ones in their cor­po­rate groups.

But if choice is what you’re af­ter, re­tail su­per funds are like the Net­flix of su­per­an­nu­a­tion, with among the best eq­uity in­vest­ment op­tions for per­sonal mem­bers. Sure, they’ll have to up­date their busi­ness mod­els, re­al­is­ing they com­pete with the modern mar­ket not just other legacy re­tail funds like them. Not all will sur­vive the tran­si­tion but those that do will thrive.

Alex Dun­nin,

ex­ec­u­tive di­rec­tor, re­search and com­pli­ance, Rain­maker Group

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