The prudential regulator’s superannuation czar says it has no view on whether smaller funds can survive – but that funds must continue to innovate to avoid becoming “footnotes in financial history”.
Fewer funds failed the Your Future Your Super (YFYS) test than last year – but plenty of passes have come from managing to the constraints of that test.
The Albanese Government has begun to explore the potential negative impacts of super fund consolidation. The question is whether a super fund can ever be too big to fail.
The performance test as it stands isn’t “fit for purpose” when it comes to choice products. And its bright line nature means tweaks are needed for MySuper products too. While the MySuper performance test dispatched a mere 13 funds, the outcomes for choice products could be even worse, according to analysis from ratings house Chant…
A new report from CEM Benchmarking shows that the Your Future Your Super (YFYS) performance test lifts system-wide outcomes. But size of fund is no silver bullet. While questions have been raised about the ability of the YFYS performance test to accurately identify poor-performing funds, an analysis of historical global pension fund data by CEM…
The wave of consolidation racing through the superannuation industry is now raising eyebrows at the prudential regulator. With the massive amounts of FUM being devoured, some funds are suffering indigestion. “This may manifest at the industry level at the point of transfer in a SFT, for example where an administrator has a backlog of transfers…