‘Net benefit to members misleading’ – Chant
The current advertising campaign funded by industry funds and the notion of “net benefit to members” came under fire at last months’ Investment and Financial Services Association annual conference in Brisbane, from leading analyst, Warren Chant.
Chant, from research house Chant West, made no bones about the attractiveness and performance of industry funds but said that recent choice of superannuation fund advertising relating to “net benefit to members” was misleading.
“It presents industry funds in the best possible light and can be very misleading for members of retail master trusts,” he said.
Chant said that his company thought very highly of industry funds, which were mostly very well run and delivering cheaper fee structures to members. However, the case they had mounted with respect to choice and net benefit to members had been very misleading.
He said that notwithstanding the misleading nature of some of the advertising and data comparisons, retail master trusts needed to pick up their acts because the industry funds represented “a juggernaut” which was coming in their direction.
Chant said that there were a number of things retail master trusts could do to limit the damage likely to be inflicted by the industry funds “juggernaut”, and the implementation of more competitive fee structure represented a good starting point.
AUTHOR
Mike Taylor
Recommended for you
In this week’s episode of Relative Return Insider, hosts Maja Garaca Djurdjevic and Keith Ford take a final look at the lay of the land ahead of the federal election as the latest polls predict a Labor victory, and what that could mean for Australians going forward.
In this week’s special edition of Relative Return Insider, we bring you outgoing Financial Services Minister Stephen Jones’ keynote from Momentum Media’s Election 2025 event, followed by a Q&A focused on the Delivering Better Financial Outcomes reforms.
In this week’s episode of Relative Return Unplugged, Dr Vladimir Tyazhelnikov from the University of Sydney’s School of Economics joins the show to break down the shifting sands of global trade dynamics and attempt to understand the way US President Donald Trump is employing tariffs.
In this week’s special episode of Relative Return Unplugged, we present shadow treasurer Angus Taylor’s address at Momentum Media’s Election 2025 event, followed by a Q&A covering the Coalition’s plans for the financial services sector.
