1 / 7

Stronger Super

Stronger Super. Introductory comments. The essential ingredients. What makes a good DC retirement plan?. Economies of scale are shared with members Strong alignment of interests Clear investment beliefs Focus on outcomes Trustee skill and knowledge Proper retirement solutions

cricket
Télécharger la présentation

Stronger Super

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Stronger Super Introductory comments

  2. The essential ingredients What makes a good DC retirement plan? • Economies of scale are shared with members • Strong alignment of interests • Clear investment beliefs • Focus on outcomes • Trustee skill and knowledge • Proper retirement solutions • A sustainable business model

  3. Why did we need MySuper? What did we find? • Too many sub-scale funds • Governance not up to the mark • Too much choice at too high a cost • It’s a compulsory system – must be efficient • Super is a public-private partnership • MySuper intended to set a benchmark • Not too dramatic a change

  4. OECD – impact of fees on outcomeTable 6.3 OECD Pensions Outlook 2012

  5. Estimated fees for MySuper1 From the Super System Review report 1. Source: Deloitte, report to Australian Super System Review – April 2010. Assumes a $25,000 account, based on 2010 market data. Includes cost of advice provided by the fund.

  6. Scale Why are big funds better? • Lower asset management and administrative unit costs • In-house expertise (better governance) • Governance premium of 1 - 2% good v. poor • Private placement participation, access to private markets • Enhanced services • US$35bn fund - 43-50bps better than US$1bn one • 2012 APRA study on fund size and performance

  7. Effect of fund size on performance* *APRA Working Paper March 2012

More Related