Super

Megafunds are outstripping APRA’s ability to regulate them effectively, according to a panel of super executives, while private asset valuations are a source of “real tension” between funds and the government despite its big nation-building push.

Super funds are double-checking their marketing materials and coming to grips with an evolving regulatory regime as greenwashing risk looms large.

Competition in super is heating up but it’s not yet come to the boil. Mergers, member retention and retirement are all shaping up as key battlegrounds for funds.

The government will continue to tweak the Your Future Your, Super benchmarks to provide certainty on sustainable investing and give ASIC more funding to combat greenwashing as global climate action heats up.

Members back the idea of industry funds and the government working together on nation-building projects – if the returns stack up. Convincing them that they actually do will be key.

Super funds’ relatively low allocations to fixed income will rise with yields and as members move further into the retirement phase, according to a new report from the government’s debt agency.

UniSuper’s mandate to Revolution Asset Management shows how important private debt is becoming to super funds as their member base matures. It also has its roots in the merger with Australian Catholic Super.

There will likely be more changes to the controversial Your Future Your Super regulations following the “initial response”. Meanwhile, the government is pressing on with super fund involvement in nation-building projects.

Mercer Super wants to break down the long-held perception that only the industry funds can offer strong performance with competitive fees. Its newfound scale and global footprint are key to the “disruption opportunity”.

Funds that have failed the Your Future Your Super performance test need to improve their communications on underperformance and product closure, according to ASIC.

The changes to the Your Future Your Super performance test are an improvement, according to WTW. But the application of the test to trustee-directed products is probably more of a negative than a positive, and some benchmarks remain inflexible.

It’s not so much the scale as the speed of Australian Retirement Trust’s growth that makes investing tough. A big allocation today might be a tiny slice of the pie tomorrow.