Master trusts drive super fund growth
The growing use of master trusts in public offer corporate superannuation has continued to boost funds under management and member levels, according to a survey conducted byKPMG.
According to the survey, assets managed by the combined funds in this sector increased by nearly 18 per cent as did the number of members in the funds.
KPMG superannuation services manager Wayne Hirt says the increasing levels of administration costs, compliance requirements and the range of services on offer from master trusts, such as the number of investment options, has driven the growth in this market.
This growth is likely to continue with the superannuation levy increasing to 9 per cent at the start of the next financial year, although superannuation providers would continue to examine how they act after the implementation of the Privacy Act and the Financial Services Reform Act, the report says.
According to the survey, a number of superannuation funds increased fees to cover the costs of implementing these changes but most chose to absorb the costs in a bid to appear more competitive within the market.
The survey covered 28 funds with more than five million members and total funds under management of $38.8 billion for the six months to December 2001.
AUTHOR
Jason Spits
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