MySuper a chance to comply or innovate
A fifth of MySuper default products have lifecycle investing integrated into it, a proof of funds that chose to innovate under Stronger Super reforms, Mercer said.
The firm added super funds applied Stronger Super and MySuper reforms either for compliance or a chance to innovate.
"We believe there has been a shift in Australians' awareness and acceptance of lifecycle investing and we expect the trend of increasing lifecycle investment options will continue," managing director David Anderson said.
"The massive change requirements of Stronger Super could've been seen as a ‘repackage' exercise or as a catalyst to bring our very best thinking to market."
Repackaging and re-branding current balanced default options as their MySuper offerings is just what most industry and public sector funds have been doing.
The Centre for International Finance and Regulation (CIFR) and Chant West recently said most funds did not re-assess or change their offerings.
Some funds in the public sector that manage default money did not obtain a MySuper license.
These funds, which were not Australian Prudential Regulation Authority-regulated, were located in South Australia, Western Australia and Tasmania
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