Morningstar, SuperAPI link to leverage employer super

Research and ratings house, Morningstar has moved to extend its reach into superannuation via a strategic alliance with Melbourne-based platform, SuperAPI.

The alliance aims to leverage the employer channel for superannuation account establishments and will see Morningstar data and research on Australian superannuation funds and their underlying investment options displayed on the SuperAPI platform.

The alliance also aims to leverage of the move to pay day superannuation arrangements in circumstances where employers need to upgrade systems.

In their joint announcement of the alliance, Morningstar and SuperAPI said the intention was to help employers understand the most appropriate default fund for their workplace and to help new employees make informed choices.

Commenting on the move, Morningstar Australia and New Zealand managing director, Enterprise, Peter Bryant said Morningstar was collaborating with SuperAPI in delivering efficiency for employers while helping people stay informed and engaged around their retirement savings.

SuperAPI chief executive and co-founder Riley James said the company was taking every advantage of government investments in Super Stream, SuperMatch and the Australian Taxation Office Super Stapling API.

“Our solution delivers systemic improvements in efficiency while maintaining superannuation standard choice architecture that delivers benefits to business, super funds and ultimately members,” he said.

“The government’s recent announcement on the role of stapling and advertising in the employer channel has provided much-needed clarity for participants. As a result, SuperAPI is experiencing significant demand from super funds wanting to improve their digital effectiveness in the employer channel to retain members, consolidate multiple accounts to save members unnecessary duplicate fees, and in some cases help funds acquire new members.”

“According to ABS, around 2.9 million employees started a new job last year, with a large proportion of those entering the workforce for the first time,” said James. “For those first-time employees, many of them young or new-to-Australia, navigating the super system is understandably challenging so the combination of SuperAPI’s digital solution and Morningstar’s insights aims to make things much easier.”

“Morningstar can help employees understand how fund investments have performed, how they compare against peers, and present qualified opinions about future prospects”, said Bryant. “We can also highlight attributes about the companies held within member portfolios that may be important to them, like exposure to particular industries and specific products like thermal coal, tobacco, and gambling.”