Paul Newfield

As super funds internalise more and more of their investment management, they’re taking on more and more risk. Many of them still lack a plan to deal with it.

While internal investment teams have generally delivered good outcomes there is little independent review or direct public scrutiny of their performance compared to external managers, according to Frontier Advisors.

Unlisted assets deliver high risk-adjusted returns across market cycles but come with inherent challenges, especially around valuation. For super fund trustees, the importance of ensuring accurate valuations to fairness and member equity can’t be overstated, says Frontier Advisors.