Data from Adviser Ratings, which tracks the movement of financially advised clients’ money between super funds, shows that Cbus had net outflows of $164 million in November, more than triple its net outflows in July. The country’s largest super fund, AustralianSuper, which manages more than three times as much money as Cbus, had net outflows of $150 million.
Adviser Ratings managing director Angus Woods says most of the money is flowing into the two largest industry super funds. “The beneficiaries of that are AustralianSuper and Australian Retirement Trust, or it’s going into an SMSF,” Woods says.
While cautioning the limitations of data that only shows super fund movement from advised clients – who are more likely to change super funds and who would be in the minority of Cbus members – Woods thinks things are only set to get worse for Cbus. “It’s just going to get more and more pronounced.”
If you’re a Cbus member – or a dissatisfied customer of any other fund for that matter – and thinking about switching, AFR Weekend has devised the following guide to choosing a fund.
Of course, you may want to consider a retail fund or self-manged super, but we’ve confined this article to industry funds.
Fees, investment performance, customer service and insurance should be among your top considerations, says Ryan Scherini, executive adviser at Viridian Advisory. The weight given to each will differ between individuals, but for most, fees and performance are probably most important, he says.
Be careful to consider any insurance or other benefits your existing fund provides. Insurance policies are not always transferrable and you could be left paying more or unable to get the cover you need. This is especially important in high-risk occupations such as construction.