Your Future Your Super

Vanguard is living up to its name, with the launch of its superannuation product likely heralding a new age of high intensity fee competition. Managing director Daniel Shrimski says the index giant is willing to play “the long game” to become a major player in the market.

The Grattan Institute says that “maintaining the integrity” of the performance test is vital and that the review should seek to make incremental improvements rather than wholesale reforms.

If reducing the number of funds was its goal, Your Future Your Super has been a wild success. But as an indicator of performance, it leaves a lot to be desired.

As super funds swell to gargantuan size and downward fee pressure intensifies the heat will be on all funds to rein in significantly outsourced investment models.

Industry superannuation has, for the most part, been a roaring success. But it needs to retain its “missionary zeal” if it’s to avoid the same fate that befell the other giants that once dominated the landscape.

Labor and the superannuation industry are still running their victory lap, but concerns around disclosure and consolidation loom large in the background.

It’s unlikely that there will be an increasing trend towards Your Future Your Super (YFYS) test failures, but the unintended consequences of the reforms are still worth examining, says JANA.

Fewer funds failed the Your Future Your Super (YFYS) test than last year – but plenty of passes have come from managing to the constraints of that test.

“The industry should not be happy to simply sit somewhere in the middle… Increased transparency will drive increased analysis and action. If you can’t measure it, you can’t improve it.”

The spectre of early release still looms large over the industry, and super’s true believers want its purpose legislated to prevent Australia’s retirement savings from becoming a crisis piggy bank.