Super Fund Managers What Do They Do?


Super Fund Managers What Do They Do?

What are the duties of a super fund manager? Your super fund investment manager decides what to invest your money in; when to buy and when to sell. The fund managers are the money managers who endeavour to make the best returns on super fund money they invest on behalf of the members. The investment managers are chosen by the trustees of the super fund. These directors, or trustees, of the fund usually number from four to sixteen. Trustees have the expertise to run and manage all those who are involved in the running of the superannuation fund.

With more than $2.3 trillion dollars invested by fund managers this is a very big business; and fund managers are very well renumerated. The whole superannuation system involves a chain of various organisations which include insurers, asset consultants and fund managers. So, when you make a contribution to your super, part of it is funnelled by your super fund into the capable hands of fund managers, who then invest that money into shares, bonds and/or securities. It is reported that there is some $20 billion of new money coming into the system each year; due to the compulsory nature of super in Australia.

According to the BRW Rich 200 list, seven of the people included on it made their fortunes as fund managers; a minimum of $250 million is required even to make the Rich list. Many of the fund managers are earning packages comparable with the top CEOs in Australia. It is, however, very difficult for individual members of non-industry super funds to find out what percentage of their contributions are going to fees, charged by their super funds. Indeed, fund manager remuneration is, often, not disclosed in the public sphere; so there is limited visibility and therefore reduced accountability in the marketplace.

Super fund managers what do they do? They make a lot of money in many cases, hopefully for you, as well as for themselves. There are government calls for greater industry accountability, especially as superannuation is a compulsory scheme in Australia. Fund managers are making their millions of dollars for themselves out of the flood of compulsory super contributions directed their way. Things like MySuper and the industry superannuation funds are setting the trend for greater visibility and accountability in the superannuation industry. The Turnbull government is now looking at removing some of the very generous taxation concessions currently afforded super in this country.

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