JP Morgan’s Australian custody business has launched an online analytics tool for superannuation funds to meet the Australian Prudential Regulation Authority’s new risk-management disclosure standards.
The Online Portfolio Analytics Lab (OPAL) uses portfolio-analytics tools to help institutional investors comply with industry guidance on the disclosure of investment risk under APRA’s Standard Risk Measure classification system.
Under the new regime, trustees must disclose a standard risk measure for each investment option offered in a superannuation product using a seven-level classification system.
The measure is designed to allow members to compare investment options and their potentially negative performance over any 20-year period.
“The OPAL tool gives superannuation trustees a powerful web-based tool that enables them to analyse their underlying data and quickly assess their level of investment risk,” says David Braga, JP Morgan’s investor services product head for Australia and New Zealand.
Users can derive standard risk measures by using the Portfolio Construction Tool within the web-based OPAL system.
At an AIST symposium in Melbourne in August, APRA’s principal analyst, Luke Mahoney, said the regulator was concerned with the readiness of many funds for the new risk management standards, six of which are specific to superannuation.