APRA

The Morrison Government has so-called “$12 trustees” in its crosshairs after they amended trust deeds to levy members for potential penalties. But APRA believes funds might collapse without them. The Morrison Government’s amendment to Section 56 of the SIS Act was intended to prevent super funds from paying penalties using member money, but – as…

The problems with Your Future Your Super (YFYS) run deep – among them, how super funds will manage ESG within the confines of low tracking error strategies. But it’s not the end of the road. Under the YFYS reforms, implementation manager Parametric believes tracking error will face downwards pressure as funds try to stay on…

This is the last edition of Investor Strategy News for the year. We will next publish on January 10, 2022. Here are some thoughts on the year past, based on reader reactions to our stories. Our most popular for the year was our coverage of the Australian Catholic Superannuation and Retirement Fund’s APRA performance test…

APRA’s decision not to include private credit in the Your Future Your Super fixed interest benchmark creates an opportunity for super funds to outperform without compromising tracking error, according to a new report by Atchison Consultants. APRA’s chosen benchmark for fixed interest – the Bloomberg AusBond Composite 0+ index – only captures the government and…

If super fund investment staff didn’t appreciate the importance of indices prior to the introduction of YFYS, they should do now. With fixed income, the indices tell an interesting, and in some ways counterintuitive, story. Notwithstanding the continued popularity of absolute returns-based portfolios, especially with the end investors, the new fund performance test implemented by…

Margaret Cole, APRA’s new executive for superannuation, has brought the super war to its most unlikely, and probably reluctant, combatants: members. Faced with the disappointing reality that few have moved out of their underperforming fund in the aftermath of the performance test, Cole has resorted to browbeating them into it. “It has been just over…

The accusations of insider trading hurled at Australia’s big super funds are explosive in nature – and pose something of a headscratcher. Regardless of their weight, reputations are at stake. The revelations made by ASIC on Wednesday last week (October 27) are a tough wake-up call for an industry that prides itself on its duty…

A significant chunk of super fund advertising could now be on ice, with APRA finding that marketing expenditure could not be shown to have improved members’ financial position. As stapling puts a nail in the coffin of default distribution, many of Australia’s biggest super funds have turned their attention to the dark art of advertising…

Geoff Summerhayes, former APRA executive, concedes that while the short-term nature of the Your Future Your Super (YFYS) test is a “challenge” for ESG investment, climate change is a mega-trend that demands more attention. One of the main frustrations around the YFYS performance test has been that climate change does not occur on a regimented…

The 88,000 members of Australian Catholic Superannuation and Retirement Fund (ACSRF) are about to be very confused. As are members of some other big super funds. Forty-year-old members in ACSRF’s default MySuper product, LifetimeOne, will be told they just earned an average 20.9 per cent from their super (after fees and taxes for the year…