‘Net benefit to members misleading’ – Chant
The current advertising campaign funded by industry funds and the notion of “net benefit to members” came under fire at last months’ Investment and Financial Services Association annual conference in Brisbane, from leading analyst, Warren Chant.
Chant, from research house Chant West, made no bones about the attractiveness and performance of industry funds but said that recent choice of superannuation fund advertising relating to “net benefit to members” was misleading.
“It presents industry funds in the best possible light and can be very misleading for members of retail master trusts,” he said.
Chant said that his company thought very highly of industry funds, which were mostly very well run and delivering cheaper fee structures to members. However, the case they had mounted with respect to choice and net benefit to members had been very misleading.
He said that notwithstanding the misleading nature of some of the advertising and data comparisons, retail master trusts needed to pick up their acts because the industry funds represented “a juggernaut” which was coming in their direction.
Chant said that there were a number of things retail master trusts could do to limit the damage likely to be inflicted by the industry funds “juggernaut”, and the implementation of more competitive fee structure represented a good starting point.
AUTHOR
Mike Taylor
Recommended for you
In the latest episode of Relative Return Insider, host Maja Garaca Djurdjevic and AMP’s Shane Oliver break down US and Australian rate cuts, soaring gold, and bitcoin’s volatility.
In the latest episode of the Relative Return Insider, host Maja Garaca Djurdjevic and AMP’s chief economist Shane Oliver unpack the surprising twists in the Australian economy, diving into the latest GDP numbers, what’s really driving consumer spending, and what it all means for the Reserve Bank’s next moves.
In this episode of Relative Return, host Laura Dew chats with Roy Keenan, co-head of fixed income at Yarra Capital Management, to discuss the evolving fixed income asset class, his sector preferences, and the RBA’s rate-cutting policy.
In this week’s episode of Relative Return Insider, AMP chief economist Shane Oliver joins the show to dissect the ongoing government economic reform roundtable and reflect on the wish lists of industry stakeholders – and whether there is hope for meaningful reform.
