The Minister for Financial Services and Superannuation this week released the government’s response to the comprehensive review of the superannuation system chaired by Jeremy Cooper.
Robin Bowerman, Head of Retail, Vanguard Investments Australia said: “The focus on cost – and the proposal that trustees will have specific new duties to deliver value for money in terms of long-term net returns – is commendable. The emphasis of MySuper is on delivering value for money for members and by focussing the trustees obligations on net returns the aim is to put downward pressure on fees to the tune of around $550 million a year in the short term rising to $1.7 billion a year over the longer term. Those numbers may be hard to relate to in terms of average account balances for super fund members but the key feature of MySuper is a single diversified investment strategy that will be easier to compare on a net return basis between different funds”
