YFYS

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…