Petersen sees MySuper as a major disincentive to invest in manager skill, for no other reason than its relatively high upfront price tag. Jeff Bresnahan sees another irony here. While industry funds have consistently been the biggest investors in ‘manager skill’, mostly through their relatively high weightings to unlisted assets, they in one way have the least to lose from a big shift to much cheaper investment strategies. “HostPlus can launch Indexed Balanced and not worry about it at all. They’re not worried about investment costs, because they are sending all the work out to be done externally,” he says – nothwithstanding the fact that several industry funds have an interest in an asset manager, Industry Funds Management. “But the retail funds still manage a fair proportion of what’s in their super funds within their own funds management divisions. So they’ll be prepared to race a fair way to the bottom – but not to the point where a super cheap product begins to cannibalise the rest of their business.”
Institutional investors can’t afford to miss out on the growth story in Australia’s neighbourhood – but if you care about ESG, China presents a BIG problem according to Princeton University’s history and international affairs professor Stephen Kotkin
Staff WriterMay 6, 2021
Perhaps the biggest surprise in the comparisons section of this year's Salary Survey is what’s not reported with remuneration disclosures of executives at both the Financial Services Council and Industry Superannuation Australia not made public.
Matthew SmithMarch 15, 2021
Greater transparency brought on by new regulatory requirements will lead to funds quickly realising the writing is on the wall to merge, but time might be running out for some, Togethr and Equipsuper's Andrew Fairley says.
Matthew SmithFebruary 8, 2021