Super

Unlisted assets deliver high risk-adjusted returns across market cycles but come with inherent challenges, especially around valuation. For super fund trustees, the importance of ensuring accurate valuations to fairness and member equity can’t be overstated, says Frontier Advisors.

At a recent industry discussion of the Financial Stability Council’s new Retirement Income Policy Roadmap, industry leaders said putting greater emphasis on the drawdown phase of superannuation will be key to keeping accumulation balances in check and retirement savings flowing through the economy.

A joint review conducted by ASIC and APRA was scathing of funds’ collective attempts to meet their new legal obligation to help fund members plan for retirement, and urged them to “address, with urgency, the gaps in their approach”.

The prudential regulator is “rigorously targeting” areas of non-compliance it identifies during its massive study of cyber resilience among banks, insurers and superannuation trustees.

Some of the country’s biggest super funds have navigated volatile markets and write-downs in one of their favourite asset classes to deliver solid returns in a tough year.

Riding the equity market rally and significant diversification in its alternatives portfolio has delivered Australian Retirement Trust a 10 per cent return as it keeps both eyes on the end of the rate cycle.

The $72 billion fund has dumped Link Group and partnered with upstart administration services provider Grow Inc. as it navigates a “rapidly changing technology landscape”.

Super funds and other institutional investors are deeply unsatisfied with the nature of private markets fees, but cost-additive pressures are emerging across all asset classes when fees should be falling.

UniSuper’s pioneers of internalisation have set up their own firm providing investment management and advisory services to superannuation funds as competition picks up and the need for a helping hand grows.

The $70 billion super fund has appointed WTW as asset consultant to its board and board investment committee as it internalises a substantial chunk of its funds under management.

Australia’s largest super funds are casting a close eye over their property and infrastructure allocations amidst challenging market conditions, according to new research from J.P Morgan. And while investment internalisation continues to gather pace, not all funds are sold on its worth.

Even the fund has been caught off-guard by demand for its new index and socially conscious high-growth options, which were rolled out in response to members wanting more choice – but not so much that they were overwhelmed.