The super conference heard a multitude of ways that charges can be disguised. Fee disclosure by investment managers is easily manipulated and needs a radical overhaul. That was the message given to super fund trustees last week at the Conference of Major Superannuation Funds in Brisbane.
The chief investment officer of Sunsuper, David Hartley, said there were several ways under the current system that managers could run investment products and disclose zero fees – even though the costs could be quite substantial.
How does that work? Hartley gave several examples. For instance, he said one option was for a fund manager to sell all its investments to an investment bank, put the cash received on deposit and enter into a swap arrangement with the investment bank to receive the earnings on the investments.
28 March 2012 | Annette Sampson, The Sydney Morning Herald/ The Age, page 3
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