Super funds want to put their $300 billion of annual inflows to work in new renewable energy infrastructure. But policy settings, Your Future Your Super and intensifying competition for local assets could all have unforeseen consequences.
Valuations are never going to be “perfect”, but that doesn’t mean super funds shouldn’t be working harder to make them more accurate – and more intelligible to the people who really matter.
The world of ethical investing continues to change, and Australian Ethical is investing in itself to keep up. A new CIO and a portfolio of impact investments from the Christian Super successor fund transfer are helping too.
Treasury is fine-tuning the Your Future, Your Super performance test ahead of its next iteration in August. While the updates could pave the way for a better test, its extension to trustee-directed products is cause for consternation.
Australian Retirement Trust has warned that introducing more granularity into the YFYS test might only confuse members and that funds will incur greater transaction costs as new benchmarks are added to it.
The Your Future, Your Super performance test will have a tough time weeding out underperforming trustee-directed products when they’re already closed, according to Chant West, while many of those housed on platforms could fail because of their unique fee structures.
Competition in super is heating up but it’s not yet come to the boil. Mergers, member retention and retirement are all shaping up as key battlegrounds for funds.
Super funds’ relatively low allocations to fixed income will rise with yields and as members move further into the retirement phase, according to a new report from the government’s debt agency.