Jonathan Armitage

MLC has changed its MySuper investment option to reflect member needs based on life stage.

Members invested in the current MySuper investment option, which has a 70 per cent growth/30 per cent defensive asset allocation, will be moved to the new MySuper where:

Members aged under 55 will now have a long-term allocation of 85 per cent growth assets and 15 per cent defensive assets. This provides them with greater opportunities for financial growth considering the

• longer time they have to retirement age.
• Members approaching retirement (55-64 year olds) will have their growth assets gradually reduced and have their defensive assets increased.
• Members aged 65 and over will have their balance maintained at a long-term allocation of 70 per cent growth assets and 30 per cent defensive assets.

Helen Murdoch, GM of Corporate Super said the changes enable MLC to cater to member needs at different stages in their life and work journey.

“Our focus continues to be on providing support for almost 600,000 of our members to achieve long-term benefits and sustainable growth. With that in mind, we engaged with our various stakeholders to receive their feedback and conducted detailed modelling and extensive analysis of the changing default super landscape.

“Our research* shows that 40 per cent of Australians have never reviewed their super fund strategy to ensure it’s right for them. Moreover, 73 per cent of Australians do not know the right risk profile for their age but 66 per cent would change their asset allocation if they knew they were missing out on tens of thousands in retirement savings.”

“The changes we introduced will help our members invest in higher growth investments when they’re younger which gives their super more of an opportunity to grow. At the same time as delivering growth opportunities, we have looked to reduce the impact of potential adverse market movements as members approach retirement age,” added Murdoch.

“We will maintain the underlying MySuper investment philosophy. We will also continue to leverage our in-depth expertise in multi-asset investing to achieve better performance outcomes for our members while maintaining a strong focus on risk management,” said Jonathan Armitage, GM Asset Management and Chief Investment Officer.

The transition of all members invested in the current MySuper to the new updated MySuper was completed between 22-25 March. All assets invested in the current MySuper were transitioned at the same time with no transaction cost to members.

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