The Australian Institute of Superannuation Trustees (AIST) has argued that funds should be permitted to use their operational risk financial reserve (ORFR) to upgrade their systems and prevent future risks earlier. The “blunt” 0.25 per cent of fund capital that funds must hold in their ORFR is now becoming a “very significant sum” for some…
Apostle’s People and Planet fund was tailor-made for Statewide Super’s members – and has interesting implications for an industry trying to meet a new wave of demand for sustainable options. Two years ago, many institutions were still outsourcing their socially responsible investing (SRI) to AMP Capital or Pendal. But the Boe Pahari controversy saw…
It’s rare that an inquiry finds no evidence of harm from a practice and still recommends against it – but that’s the path the standing committee on economics has gone down. The standing committee on economics’ inquiry into common ownership was most notable for beingone of the few inquiries of that body that regularly ended…
Perennial’s new private growth fund is swinging for the institutional market as more and more companies steer clear of public markets amidst conditions. “The number of companies looking to stay private for longer has exploded,” says Ryan Sohn,portfolio manager for Perennial’s new Private Growth Ventures fund. “There’s a need for patient, private capital, and that’s…
The cult of the benchmark is alive and well in global financial markets – and it’s probably doing more harm than good when it comes to ESG investing. ESG has leapt from the fringes of the financial services to widespread acceptance in just a handful of years. But markets tend to act as myopic, short-term…
As funds get bigger and bigger – and the Your Future Your Super (YFYS) performance test bites – they’re rethinking everything from alpha generation to their intrinsic investment philosophies. While the increasing size of super funds will benefit them in unlisted markets – where big funds can increasingly play on the same field as global…
Everybody loves a good story – investors particularly so. But sometimes a good story can lead to a crowded trade, or one that defies reality. “In finance, behaviour is driven by expectations of future returns, and expectations are often driven by stories, particularly during times of heightened uncertainty,” Charalee Hoelzl, investment manager at Ruffer, wrote…
Your Future Your Super (YFYS) is meant to improve member outcomes. But Frontier’s latest research suggests that the performance test is in dire need of tweaking if it’s to fulfil that goal. Frontier’s latest research – “The heat is on – superannuation fund performance in 2021” – aims to answer the question of whether the…
A landmark report from J.P. Morgan paints a picture of an industry racing towards a future that it doesn’t yet understand. Our big super funds look like strangers in a strange land. “What would be helpful from a regulatory perspective, or even a government perspective, is what are we actually driving towards?” says Mine Super…
According to Pzena Investment Management, the value cycle is now truly under way – and shows no signs of slowing. New York-based Pzena Investment Management began to track the value rotation in late 2020, with its analysis research showing that deep value stocks have outperformed by around 37.4 per cent since. But the question…
