Is this a good thing?

This is a one scarey graphic.

But consider this.  It is projected that by 2030, 10 funds will manage $2.75 trillion, yes trillion of investor money.

Firstly, assuming a 2% management fee (before GST and before performance fees), that is a neat $55 million of annual revenue.  Not bad work if you can get it.

Secondly, the biggest fund by a mile is an industry fund and 5 of the 10 are industry funds.  Oh and the 2nd and 4th largest are funds that ostensibly manage the superannuation of public servants.

Forget about the impact on “capitalism” of proxy advisors.  This is the greater threat.

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14 Responses to Is this a good thing?

  1. stackja

    With Super funds, it was always the intention?

  2. anonandon

    Thats 55 billion, not million

  3. Bruce of Newcastle

    So by 2030 this study projects that 7 out of the top 10 superfunds will be controlled by the Left.
    And retirees expect to actually be able to collect their super?
    As we know socialism works until they run out of other people’s money.
    Which in this case is your money, peoples.

  4. Sean

    If retail funds start to outperform then there’s no reason money won’t flow back to them.

  5. pbw

    anonandon,

    Thats 55 billion, not million

    That’s enough for a progress payment on our submarines.

  6. RobK

    They will be trying hard to find other ways to over-service such as the great opt-out life insurance scheme.

  7. Bruce of Newcastle

    If retail funds start to outperform then there’s no reason money won’t flow back to them.

    The Left lies about everything. Why would industry superfund “performance” be any different?
    Data will be faked until a collapse suddenly threatens. Whereupon a Labor government will rescue the industry superfunds and taxpayers will have to cough up. And the people who stole it all will never be brought to account.

  8. The BigBlueCat

    Sean
    #3250744, posted on December 3, 2019 at 1:12 pm
    If retail funds start to outperform then there’s no reason money won’t flow back to them.

    Many of the modern awards dictate where employee superannuation is to go – my wife works in health, and her super must go to HESTA (no ifs, buts or maybes). We rolled some out to a retail fund, but it must be paid into HESTA each pay. Unless the employee is keeping up with relative fund performances, the money is likely to stay in the industry funds.

  9. Tim Neilson

    The Left lies about everything. Why would industry superfund “performance” be any different?
    Data will be faked until a collapse suddenly threatens. Whereupon a Labor government will rescue the industry superfunds and taxpayers will have to cough up. And the people who stole it all will never be brought to account.

    The key is large “investments” in major projects, especially ruinables. Deals will be done to have the money “invested” paid as huge wages to union members working on the project – that will keep those union members happy for a while.
    The “investment” will be underpinned by taxpayer funded grants and government preferences, but they won’t be enough in the long term.
    The “investment” will be valued in the accounts by reference to fantasyland profit forecasts, thus making members think that they actually have some genuine superannuation savings – so keeping them happy for a while.
    Then, as Bruce predicts, the Ponzi scheme will collapse and the taxpayers will pay for the union spiv trustee/directors to get off the hook.

  10. I’m more concerned about the new political clout that the unions can exercise via their control of the industry super funds. There is growing evidence that they are exerting influence over the “social agendas” of companies they invest in. This dwarfs union influence through standard union activity.It really in ingenious strategy & no one seems to have seen it coming.

  11. Stephen Harper

    I think that you mean $55 Billion, not million.

  12. JC

    Spart

    2% management fee on 2.7 trill is not 55 million. It’s much, much more than that. It’s 54 bill.

    Even .2 is 550 million. Now that is also a lot of mullah

  13. mh

    It is projected that by 2030, 10 funds will manage $2.75 trillion, yes trillion of investor money.

    Firstly, assuming a 2% management fee (before GST and before performance fees), that is a neat $55 million of annual revenue.

    Howler alert 🚨

  14. Infidel Tiger

    A 2% annual tax on all Super holdings could pay off the national debt or fund some really crazy shit.

    Let’s give them some ideas.

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