“This decision will increase our appeal to a broader range of members looking to have their superannuation invested in a responsible way, as well as delivering great returns so members can maximise their retirement outcome,” said Mr Stockwell.
The new moniker, Active Super, reflects the fund’s “long-standing active pursuit of investments that deliver solid long-term returns for members that have a positive impact on the world, as well as our active involvement with our members and their local communities”, he said.
The change, effective from Monday, will be further accompanied by a reduction in some administration fees at the start of the new financial year on July 1.
The fund’s decision to rebrand comes at a time of rapid consolidation in the super sector, with 70 funds completing mergers over the past eight years.
The prudential regulator has been actively pushing smaller funds to merge with bigger funds, arguing that larger entities are better placed to deliver stronger investment performance and lower fees.
Last week, APRA’s outgoing superannuation tsar, Helen Rowell, said “any fund with less than around $30 billion in assets under management is increasingly going to be uncompetitive against the so-called megafunds”.
But Mr Stockwell said that funds such as Active Super can use their smaller size to their advantage.
“We can invest in some places [including small cap stocks] that are harder for the large funds to get to due to capacity constraints,” he said.
Mr Stockwell also cited research showing that members of small super funds were happier with the services provided to them than members of larger funds.
While Active Super would seem to be a prime candidate for a merger, Mr Stockwell said that the fund’s current focus was on “ensuring that we deliver great member outcomes”.
Mr Stockwell is hoping that the shift toward ethical investing will attract new members to Active Super, which he said was the first super fund to stop investing in tobacco.
“Responsible investment is in our DNA and we examine the environmental, social and governance (ESG) impact of our investments across our entire portfolio while also incorporating active ownership strategies,” he said.
A new digital experience, which includes a website redesign and an upgrade to the fund’s app, is also expected to boost member engagement.
Bleeding members, Local Government Super shuns merger - The Australian Financial Review
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