Saving the whales and serving the members
Since its introduction in 1992, superannuation savings have grown to approximately $3.5 trillion (as of 31 March 2023) and now represent a significant portion of the savings of Australians at retirement.
With the compulsory nature of the sector, it is critical that the assets in the superannuation sector are managed appropriately. The determination of appropriateness is a multifaceted issue. However, recent market and media commentary has leaned toward a focus on scale as a key consideration in this determination of fund efficiency.
In this paper we challenge this perspective and suggest that most superannuation funds in the public-offer and regulated sector can deliver strong outcomes, if structured and positioned appropriately.
In this paper we challenge this perspective and suggest that most superannuation funds in the public-offer and regulated sector can deliver strong outcomes, if structured and positioned appropriately.
Given recent fund consolidation in the market, we question whether continuation of this trend is in members’ best financial interests. Will a small number of ‘mega’ funds struggle to appropriately cater to the individual and diverse needs of all Australians?
Principal Mercer
Saving the whales and serving the members
Mercer believes there is a more comprehensive roadmap that needs to be considered for superannuation fund performance.
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