Super funds meet objectives, but fall down on communication
While 94 per cent of superannuation funds have met their investment objectives over the last five years, less than a quarter had clearly defined and measurable benchmarks for their members.
A recent survey from Super Ratings analysed the performance of superannuation options against their stated objectives. Most funds set their objectives over a medium term period of four to five years, and notwithstanding recent market downturns, the study found the majority of funds have delivered to members, remaining ahead of their stated performance objectives.
Furthermore, approximately half of the superannuation options continued to meet or exceed their objectives over the medium to long term of seven years.
However, the research also found that only 24 per cent made their objectives easy for members to understand while 75 per cent of fund options provided “ill-defined investment objectives to consumers” and were subsequently eliminated from the study.
Super Ratings acknowledged there were no clear requirements for superannuation funds to provide measurable objectives to their members. The research centre is calling for “identically defined ‘investment objectives’” within funds’ Product Disclosure Statements.
Recommended for you
Insignia Financial has issued a statement to the ASX regarding a potential bid from a third global private equity business to acquire the firm.
More than 30 advisers fell off the FAR during the Christmas and New Year period, according to Wealth Data, with half of these coming from licensee giant Entireti.
With next-generation heirs unlikely to retain their family’s financial advisers after receiving an inheritance, Capgemini has explored how firms can work with younger generations to maintain a relationship.
The use of technology and data analytics will be a way for advice firms to grow in 2025, according to Adviser Ratings, with those who are using it successfully reporting 10 per cent higher profit margins.