Mr Ireland, who is retiring from his position as head of client strategy at JANA in July and was previously general manager of MLC Implemented Consulting before the two entities merged in early 2012, told InvestorDaily he leaves the institutional funds industry with concerns about the MySuper development.
“The MySuper regulations have the potential to really dumb down investment arrangements for super funds because fees will become the key differentiator and that mitigates against sophistication in investment,” he said. “What’s happening with MySuper is not in the interests of members in the long term.”
The long-serving executive said that the cost-cutting objective – which he said is at the heart of the MySuper agenda – will be at the expense of products focused on investment performance, and is therefore not in line with the best interests of members.
“Funds should aim to produce the best investment arrangements possible, not the cheapest arrangements possible,” he said.
While eventually this lack of quality may result in an advantage for institutional funds as “quality might shine out”, this may take some time, Mr Ireland said.
He said that he steps down from his position after 12 years with MLC with “no bad feelings” and reflects happily on the smooth merger of the two entities and substantial growth in funds under management under his tenure.
“It’s been a success and I’ve been happy to be a part of that,” he said, adding that he looks forward to studying history and engaging in volunteer work in his life beyond financial services.
