Industry super funds are under immense pressure to rethink their traditional low-cost operating model as their loyal members now demand significantly more service – and the government and regulators are prepared to wield a big stick.
Australia’s total superannuation assets have increased 8.5 per cent year on year to $3.56 trillion in September 2023, according to the latest quarterly figures from the Australian Prudential Regulation Authority (APRA).
Investment manager Acadian Asset Management has released a new paper, identifying the differentiation of strategies that improve risk-adjusted performance from those that simply amplify active risk as one of the biggest challenges for professional investors.
Colonial First State (CFS) has introduced a new technology to its FirstChoice platform, aiming to reduce set-up time for new and existing accounts via integration with wealth management software Xplan and existing client data.
Investors are forecasting bond returns to remain strong over the next year amid high interest rates and the prospect of rate cuts by central banks but are also gearing up for volatility due to deteriorating credit quality and the rising risk of defaults.
The return of median superannuation growth funds (invested 61 to 80 per cent in growth assets) fell 1.5 per cent in October, according to fund research group Chant West.
Insignia Financial and Colonial First State ceased their membership of the troubled Association of Superannuation Funds of Australia in recent months. The exit of two major members is expected to result in a financial hit of at least $150,000 for the peak body and follows a round of staff redundancies.
Some asset owners are kidding themselves that just owning a portfolio of equities can be considered “impact investing”. Simply allocating capital to impactful causes, and having an intention to do good, falls short of the definition. True impact investors embrace a “theory of change” (and avoid slick marketing claims).
COG Financial Services has acquired 19.99 per cent of Centrepoint for $13 million, just days after pulling its rival offer for Diverger.
Count has amended its binding scheme implementation agreement to acquire Diverger, announced in September and due to be completed in February.
Bridgewater Associates’ portfolio strategist, Atul Lele, has predicted that a shift from the pro-corporate, pro-liquidity, pro-growth, disinflationary environment would significantly hinder the growth of most traditional portfolios in the coming years. In a keynote speech delivered to Fiduciary Investors Symposium, he urged investors to start building resilience.
The government has introduced a bill to legislate the objective of superannuation to parliament on Thursday.
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Investment Magazine provides in-depth, monthly analysis of trends and developments for all the businesses in which superannuation funds engage‚ including asset allocation, investment manager selection, custody and fund accounting, member administration, group insurance and compliance.
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