Comment

First Sentier’s decision to close a number of strategies and pivot towards private markets handily illustrates the pressures facing the Australian funds management scene – and the new period of competition into which it is now entering.

Few would disagree that a strong regulator is required for a strong superannuation system. But APRA’s myopic focus on cost to members means its $70,000 Christmas party is unlikely to help its reputation.

Private credit has seen huge inflows in recent years, but contrary to the claims made by some of its advocates it’s not a defensive asset class or a substitute for investment grade corporate and sovereign bonds.

Everybody and their dog has an idea for putting the Future Fund to work beyond its core mandate.
But the best idea for getting it to invest more in Australia’s economy is probably already being done.

As 2023 draws to an end, it’s worth looking back at those stories that didn’t make it into the top 10 but in which some of the great industry shifts were chronicled.

More updates to Your Future, Your Super (YFYS) will no doubt be welcomed by the industry, but a thorough review must get to the bottom of the potential system risks created by benchmarking and big funds that keep bulking up.

It’s temping to dismiss the super for housing debate out of hand. But if funds and trustees refuse to engage with that debate it will inevitably be settled without them, with a deleterious impact on retirement savings.

Clicks on the Firstlinks newsletter went through the roof on Thursday morning, driven by a spontaneous reaction to distressful hard news.

If or when there’s another royal commission into financial services, the profit-to-member and industry funds will not be able to say they weren’t warned about their problems. They were warned twice on Tuesday alone.

Bad memories of a 1970s style inflation breakout are animating monetary policy in the post-Covid world, writes Rob Prugue. And the irrational prejudice of inflation hawks means more viable tools are being discarded.

The start of any high profile corporate failure can often be traced back to a lack of fiduciary oversight, writes Rob Prugue. Shareholders have a responsibility to both appoint and monitor those who represent their interests.

Betashares has become the second ETF provider to launch a superannuation product, but as with other new entrants into the highly concentrated market it will be a challenge for it to find its feet.