Bank hits back at APRA fund bosses

Bank hits back at APRA fund bosses

After several APRA fund bosses claimed DIY options are ineffective at stemming SMSF leakage, one bank has hit back, suggesting direct investment options are an effective means to retain members for those wanting to “get their hands dirty.”

Late last week, SMSF Adviser reported that the chief executives of three super funds believe direct investment options for members of APRA-regulated superannuation funds are ineffective in reducing outflows to SMSFs.

In response to the article, ING Direct manager of business savings and superannuation, Tim Hewson, said when ING Direct conducted research into what the market and its customers wanted out of super, the same sort of feedback kept emerging – “control, choice and flexibility”.

“For those engaged with their super, they’re obviously looking to take an active part in the investment decision-making process and the types of investments they are looking for are obviously those offered by direct investment options, such as “cash, term deposits, and managed funds, shares, ETFs and LICs”, Mr Hewson told SMSF Adviser.

He said he is enthusiastic about the role direct investment options can play in creating wealth retirement solutions for the longer term.

“The research that everyone in the market’s done basically tells you the same underlying principle: those that want to get their hands dirty want to actually make the investment decisions,” he said.

“It was that type of thinking that obviously inspired us to dig a little deeper into what customers want and the same sorts of themes continue to pop up – choice and flexibility.”

 

Bank hits back at APRA fund bosses
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