In his keynote speech to the FSC Annual Conference last week, chief executive John Brogden said MySuper products are already competitive to other funds on a global scale and that the “good news” is that there is further room for improvement.
“At 73 basis points, MySuper products compare favourably to the other jurisdictions considered by Deloitte,” Mr Brogden said.
“MySuper must be given time to deliver what the Cooper Review intended it to do – that is, lower costs through competition.”
Mr Brogden that MySuper products have already shown favourable comparisons to CalPERS in the US, The Canada Pension Plan, the Government Pension Fund of Norway and the MPF system in Hong Kong.
He also said that while MySuper has already resulted in a “real reduction in fees” after a running period of eight months, the FSC believe fees still have room to move.
“The commencement of MySuper has had a dramatic impact on fees,” Mr Brogden said.
“Whereas total fees declined from 1.37 per cent to 1.2 per cent between 2002 and 2011, a significant decline in its own right, the decline has accelerated in the past two years.”
“Superannuation fees needs to be given the opportunity to go further through reform in the way default superannuation funds are selected by the introduction of an open, competitive and transparent market.”
