Super

Pension funds are increasingly turning to active management to generate returns in a hostile environment. But as they seek to become true global investors, super funds face a different set of tradeoffs.

“We had the courage to stick with our investment strategies,” ACS CIO Michael Block tells ISN. “Often what happens with a strategy that doesn’t work is you cut and run at the wrong time. We were lucky enough or clever enough or brave enough that that didn’t happen, and our members reaped the benefit this year.”

According to RIAA, the YFYS test “runs contrary to sound climate risk management”, and goes against both the government’s own net zero plans and APRA’s guidance on climate change risk.

Chant West’s proposed replacement for the performance test might cut through the complexity and create a fairer system for super funds, which have dramatically altered their investment strategies to avoid failing.

As the Albanese Government looks to use super funds to kickstart Australian infrastructure growth, the number of obstacles arrayed against investing in affordable housing and venture capital might give them pause for thought.

The superannuation industry is grappling with the complexity of delivering retirement solutions. Perhaps the only way to assess how well they work in the future is to start assessing them right now.

Vanguard is living up to its name, with the launch of its superannuation product likely heralding a new age of high intensity fee competition. Managing director Daniel Shrimski says the index giant is willing to play “the long game” to become a major player in the market.

UniSuper is “scouring the domestic market” to build out its unlisted investment portfolio. And as a signatory to the new Affordable Housing Accord, it’s investigating the YFYS benchmark risk of nation-building.

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.