Australians are disillusioned with superannuation and should not invest in hedge or buyout funds but rather choose simple investment products, says Jim Minto, managing director of TAL Ltd.
“The average Australian shouldn’t go within a bull’s roar of a hedge or buyout fund; they’re for reasonably sophisticated investors,” he says. TAL manages $3 billion in superannuation funds.
Minto says fund managers will move away from complex investment products, given pressure to reduce fees.
“The industry is facing up to the fact it must deliver very efficient, cost-effective product,” he says.
“If the goal is to create confidence in the industry we should have people in an appropriate product.”
The funds industry has a long way to go before it regains consumer confidence, says Minto.
“Consumers find the industry complicated and not too consumer friendly,” he says.
“People distrust superannuation, as evidenced by the fact they’re saving elsewhere.”