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The previously (relatively) low hurdle of a CPI+ return objective is going to be harder to leap in the future. It might be time to return to the old stalwart of cash.

The “embers of optimism” are fading every day, and the $30 billion Equip Super is preparing for the big one. Still, there’s hope – however small – that the worst may be avoided.

It’s not quite over, but the dislocation in equity markets and forced selling is leaving plenty of bargains on the floor. Super fund CIOs will be particularly glad for “the strongest tool in their kitbag”.

As super funds swell to gargantuan size and downward fee pressure intensifies the heat will be on all funds to rein in significantly outsourced investment models.

One number will never tell the whole story, and a new and improved performance test could comprise as many as nine metrics, according to Chant West. This time around, Treasury is actually listening.

While Australia’s superannuation system is the envy of most of the world, it still needs to move from helping people accumulate money to helping them spend it.

Passing the performance test is no excuse for not merging, according to APRA, and the prudential regulator will still be giving small funds the nudge to consolidate where they feel their size isn’t sustainable.

The International Monetary Fund (IMF) has called for internationally coordinated mandatory measures including ‘swing pricing’ – equivalent to buy-sell spreads – to limit systemic risks posed by liquidity misalignment in open-ended funds.

Hedge funds are increasingly confident that investors will see the worth of their strategies. But they’ll likely experience further declines in FUM and performance before a global “bounce back”.

As consolidation gathers pace and big super funds move their investments offshore, it will likely be the biggest private markets managers that benefit. But Your Future Your Super presents a unique set of challenges that can’t be easily overcome.

After 47 years at the helm of the hedge fund he founded, Ray Dalio is giving up day-to-day investment management. But perhaps more surprising is his newfound appreciation for cash.

A new review will address some of the unintended consequences of Your Future Your Super. But while super funds are no doubt holding out for a hero, there’s probably no perfect performance test.