Super

Legalsuper CEO Andrew Proebstl is saying goodbye to the fund he’s run for 20 years. But with super once again standing on the cusp of change, he still wants to be part of the industry.

The CEO of AustralianSuper says the Morrison Government doesn’t get enough credit for introducing the YFYS reforms, and that funds need to stop arguing over its detail and get on with the business of performing against the benchmarks.

The Grattan Institute says that “maintaining the integrity” of the performance test is vital and that the review should seek to make incremental improvements rather than wholesale reforms.

Rising demand for global small- and mid-caps has seen Bell Asset Management awarded a $500 million mandate from Hostplus.

If reducing the number of funds was its goal, Your Future Your Super has been a wild success. But as an indicator of performance, it leaves a lot to be desired.

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.

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.