YFYS

“If you don’t know where you are in a bear market, then you should be in the game… We get asked: ‘is it too late?’ Our view is that it’s never too late to think about defensive strategies.”

The spectre of early release still looms large over the industry, and super’s true believers want its purpose legislated to prevent Australia’s retirement savings from becoming a crisis piggy bank.

The old ideological battlelines are being drawn up once again in preparation for three more years of fist fighting over Australia’s retirement savings.

Chicago-based V-Square Quantitative Management has expanded its separately-managed account platform with the launch of its Global Equity ESG Materiality and Carbon Transition Indexed Strategy.

A big chunk of super funds are now in “limp mode” as their buffer against the performance test evaporates. And sustainable investing is getting harder when even tobacco exclusions eat up the tracking error budget.

Performance concerns for sustainable investing have risen to the fore as the Your Future Your Super (YFYS) test shortens investment horizons. The wider return outlook is more challenged too.

“In general, it is a healthy environment for hedge funds, with allocation from institutional investors expected to rise. As markets brace for uncertainty, investors expect hedge funds to offer positive returns while reducing portfolio risk.”

Super fund data companies are rushing to beat deadlines for June 30 figures, with heightened interest from industry participants and members. The median balanced fund was minus 3.3 per cent, SuperRatings said.

The performance test for Choice products has been paused, and the Albanese Government has launched a sweeping review into the Your Future, Your Super (YFYS) reforms. So what comes next?

As the new Labor Government explores pathways to 15 per cent, the superannuation industry needs to examine whether that’s really in the best interests of members.