Industry funds questioned on not-for-profit claim

Industry superannuation funds may call themselves “not-for-profit” but they are not charities, according to the former chief executive of Equip Super and now chief executive of the Myer Family Company, Danielle Press.

Speaking on a panel session during the Financial Services Council (FSC) Leaders’ Summit in Sydney, Press said charities were in the business of being not profit, and industry funds needed to come to terms with that.

Press’ comments came as Australian Prudential Regulation Authority (APRA) deputy chairperson, Helen Rowell said she believed superannuation fund trustees needed to accept that they were running substantial businesses.

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She said that on that basis they needed to have appropriate strategic plans in place.

Rowell and other members of the panel discussed why there had not been faster consolidation within the superannuation funds space, and the APRA deputy chairperson suggested that funds needed to be looking at their member value proposition.

“I don’t doubt that most trustees believe they genuinely have the best interests of members at heart, but I question how they are making that judgement,” she said.

Rowell said APRA wanted to see the industry shift to a more objective assessment of the value they were delivering to members, adding that trustees needed to be more forward thinking if they wanted to avoid change being enforced by regulation.

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Anyone who thinks Industry funds were set up by unions solely to benefit members is kidding themselves. There is another agenda at play and it is obvious to anyone with a passing interest is superannuation. It is worthwhile reflecting on the mindset of the unions when they first embarked on this journey many years ago.... 'What we must recognise at this early stage of union involvement in the Superannuation issues is that control over the funds will provide unions and governments with considerable financial leverage. That leverage can be used to advance the cause of Socialism in Australia.' Simon Crean speaking to the ACTU Congress in 1981. Is it a co-incidence that the ALP is now flush with money and massively out-spent the Coalition at the last election?

thing is thought, most industry funds have performed better for their members than the retail funds

That's if you believe the ads john, but those as do not compare apples with apples. Having worked for one I wouldn't believe a number that comes out from them anyway, as among other tricks they jump between time weighted and money weighted from month to month.

When you have a monopoly on a business sector you should do well

No need to compete for new members ; able to smooth unlisted infrastructure returns over the long term ;able to run a captive insurance business ;no need to reduce fees for My Super just rebrand the existing growth fund .

just worth noting though that industry funds performance is usually much better for members than retail funds ??

i don't know whether I go my point across, but industry funds will take you up the escalator faster than retail funds.

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