Your Future Your Super

The changes to the Your Future Your Super performance test are an improvement, according to WTW. But the application of the test to trustee-directed products is probably more of a negative than a positive, and some benchmarks remain inflexible.

As Australian superannuation assets approach A$4 trillion, politicians on both sides of the divide will be tempted to dip into this massive nest egg to meet their fiscal needs, writes Rob Prugue.

Basing an investment strategy on the goldilocks investment markets of the last 35 years gives rise to considerable risk, writes Michael Block, and now might be the time to get out of growth assets.

Your Future Your Super makes ESG investing a fraught proposition for super funds. But decarbonising benchmarks doesn’t have to generate (that much) tracking error – if you do it right.

With prospective portfolio returns likely to be lower than they have been in the past, the incentive to reduce risk and enhance returns is greater than it has ever been. The investment maths is compelling, but regulatory risk might overpower it writes Michael Block.

The Coalition wants to take the upper hand in the often emotional superannuation wars. Nation building and the new objective of super give it the perfect opportunity.

While APRA “doesn’t feel the need to start each year with a shiny new set of initiatives”, it’s still planning on scrutinising super funds’ valuation practices and giving more “sub-scale” funds the nudge to merge in 2023.

Australia’s largest homegrown asset consultant is plotting an expansion further beyond its traditional superannuation clients, while consolidation in the industry is changing the way they work.

Chant West’s proposed replacement for the performance test might cut through the complexity and create a fairer system for super funds, which have dramatically altered their investment strategies to avoid failing.

The superannuation industry is grappling with the complexity of delivering retirement solutions. Perhaps the only way to assess how well they work in the future is to start assessing them right now.