July 20, 2018
At the risk of missing something here, don't the returns get published based on the investment options offered by the Industry Funds?
As such the apples for apples comparison is relevant. The argument put forward by Colonial First State is bogus. It's about the performance of investment options, not the overall performance of the member base that is being compared.
The strategy of each investment option is determined by the managers view on the right mix of asset classes and investment manager styles to achieve their investment objective/s. The performance tables compare investment options with similar objectives...i.e. their peer group.
If a member selects, or is advised to select, an option with a lower return objective then this is a different matter to the performance of similar options offered by other Funds.
As Mike Taylor rightly points out, that it's an "interesting approach", i.e. completely flawed. The Industry Funds investment options have performed very well for their members. Rather than questioning it, Colonial First State should be trying to focus on how they can improve their performance to compete better.
Hopefully Aon will change this culture when they acquire Colonial First State from Commonwealth Bank in the next few weeks.
#superannuation #cnbc
July 20, 2018