Published: 27 Nov 2020
The owners of more than 1 million super accounts holding more than $30 billion in assets may never be told their fund is a dud unless a crucial government performance test includes all fees and charges.
The government’s Your Future, Your Super exposure draft legislation suggests it will stick with the inferior net-investment return benchmark - which excludes administration fees and other non-investment charges.
This distorts outcomes because it does not measure what a fund deposits into a member’s account and allows dud products to hide their lousy performance. Benchmarks must be based on net returns – investment returns minus all fee and charges.
*The above material, whilst correct at the time of publication may include references or statements which are no longer current.