CFS gets MySuper authorisation
Colonial First State (CFS) has emerged as the first retail superannuation fund provider to gain authorisation of a MySuper product.
The company announced today that it had gained approval for a MySuper product within its ‘FirstChoice Employer Super' offering.
Commenting on Australian Prudential Regulation Authority (APRA) approval for the product, CFS general manager of products and investments, Peter Chun, welcomed the development. He said that as a result of the MySuper legislation CFS would no longer provide a range of default investment options (it currently offers eight) with different growth and defensive allocations which could be chosen by an employer to match a plan's demographics.
He said that, as a replacement, a MySuper product would either have a single diversified investment strategy or a lifecycle approach.
Chun said CFS would offer a lifecycle approach known as ‘FirstChoice Lifestage' — specifically developed for members born in the same five-year age group who typically needed a similar investment strategy.
"When a member joins the fund and they have not selected another investment option, they will be placed in the FirstChoice Lifestage option that matches their date of birth," Chun explained. "As a member gets older the level of investment risk of the option gradually reduces. This aims to reduce the impact on their retirement savings in the event of substantial falls in investment markets as members near retirement."
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