Total FUM rose 20 per cent to over $2 billion, four per cent higher than the median increase, according to SuperRatings data. legalsuper chief executive Andrew Proebstl said the results are particularly impressive given the increase in competition within the super industry.
“We are very pleased with the growth we achieved last financial year, exceeding overall industry averages in the face of expanding competition,” said Mr Proebstl.
Mr Proebstl said a smaller fund size and a clearly defined target market had enabled legalsuper to invest nimbly, engage closely and successfully with its members and tailor its products directly to the needs of legal professionals.
“The value in smaller super funds, particularly one like ours, is that you have a very clearly defined market and I think when your market is clearly defined you can develop and deliver products and services that are more customised and tailored for the particular market segment you serve,” Mr Proebstl told InvestorDaily.
“It’s more personal, tailored and better designed to achieve the objectives for the people in that particular profession,” he added.
Mr Proebstl said legalsuper has a deeper insight into the expectations of people in the legal profession and the fund can therefore better tailor everything towards meeting those expectations. According to Mr Proebstl, 40 per cent of legalsuper’s total assets are invested outside the default option.
“The average in most industry funds is around 10 per cent, so we have a much higher instance of people electing to invest their super outside the default option,” he said.
“There is much debate in the industry about super funds needing to have scale.
“We think it is not so much about acquiring scale per se; it is about acquiring the level of scale you need to achieve your mission.”
Mr Proebstl said by having a clear mission focused on optimising the retirement savings of people in the legal profession, this clearly defined the fund’s target market, enabling better quality and more efficient engagement with members.
In addition to achieving strong results, in the past year legalsuper received approval for a MySuper licence, appointed Towers Watson as an asset consultant and also launched a direct investment option in December last year, allowing members to invest in ASX300 stocks, 46 ETFs and term deposits. A reduction in fees was also implemented for two thirds of all investment options, with the investment fee for legalsuper’s default investment option now four basis points lower than five years ago.
Mr Proebstl said the results for 2012/2013 provided a solid foundation for legalsuper to further expand its FUM under the new MySuper regime.
