Industry Super Funds Come Out Fighting

Certain uncharitable souls have suggested the Federal Government’s superannuation choice legislation was aimed at weakening the power of industry super funds, but it looks like it just might make them more powerful than ever.

In the accompanying video interview, industry super fund godfather, Gary Weaven, outlines what he sees as an achievable target: 80 per cent market share. That will give the for-profit super funds nightmares.

Weaven’s goal is based on performance. He acknowledges the funds have a tough fight ahead, but believes the simple bottom line superiority of industry funds will win out.

Thus the start of the Australian Super Investment Conference in Cairns today is an optimistic event. The industry funds are on a roll and they know it. You can feel the quiet optimism that choice is running their way.

Gary Weaven, a former ACTU heavy, will step down from his role as executive chairman of Industry Fund Services next year when that body is taken over by the industry funds’ bank, Members Equity. He will remain in a non-executive role, befitting a successful elder who has been pivotal in keeping pressure on the funds management industry to reduce fees and improve performance.

Eureka Report will be carrying reports from the Cairns conference throughout this week, including a longer audio interview with Gary Weaven in which he will explain the Members Equity move (Australia’s banks had better watch out as well), the takeover of Pacific Hydro and why industry funds are being forced to invest more offshore.

And, of course, there are a few passing blows on the commission-based structure of his main competitors.