Industry fund revamps MySuper offering

A $5.6 billion industry superannuation fund is revamping its MySuper option, which will see default members' exposure to growth assets and fees rise.

EISS Super is switching its MySuper options from a "conservative balanced" portfolio to a "balanced portfolio".

As a result, the option will go from having an asset allocation of 59% growth and 41% defensive to 75% growth and 25% defensive.

The investment return objective will go up from 2.5% above CPI to 4% above it, on a net after fees and tax basis.

"Considering the long term nature of superannuation we have determined that changing our default MySuper investment option to one that invests in more growth assets (e.g. Australian and international equities) will provide our MySuper members with a better outcome at retirement," the fund said in a statement to members.

The switch means the default members' fees and costs will also increase from a total of 0.84% p.a. to 0.95% p.a.

EISS Super's MySuper option had $1.42 billion at June end, according to APRA statistics.

The 11 bps rise in default members' fees as a result of the investment profile change equates to an extra $1.56 million in fees for the fund.

The changes come into effect on 18 November 2019 and members have until November 13 to notify EISS Super if they wish to remain in the conservative balanced option.

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