YFYS

The public facing aspects of Your Future Your Super (YFYS) risk creating a “pseudo ‘best in show’, according to new research from Deloitte. The research, titled “New ways to judge the past“, highlights a number of mostly unexamined pain points in the YFYS legislation and regulations – notably around the ATO’s YourSuper comparison tool and…

With the advent of Your Future Your Super (YFYS) Australia’s super funds are more closely examining their indexing options. The trick is ensuring member outcomes don’t suffer. Benchmark-relative risk is now top of mind for super funds, with specialist implementation manager Parametric seeing a substantial uptick in the number of funds taking an interest in…

The Government’s ‘Retirement Income Covenant’ is off to a shaky start following initial reactions to its position paper. There is a complete absence of detail for super funds to ponder. While welcoming the Government’s move on the subject and the aim for resulting legislation to be non-prescriptive in nature, three influential and apolitical organisations have…

Trustees should consider “pre-mortem” stress tests and a whole of portfolio approach to the YFYS performance benchmarks to avoid underperformance, according to Willis Towers Watson (WTW). Jonathan Grigg, WTW director for investments, says avoiding test failure will be a high priority for funds, but not one that can override the obligation to act in members’…

There is a growing fear that the post-YFYS landscape will be dominated by a handful of megafunds, with competition – and differentiated member outcomes – disappearing. Super funds are about to experience a quick and bloody cull. With the first underperformance results expected on September 1, and letters to be sent out soon after advising…