Superannuation fund chief investment officers now command million-dollar salaries to shepherd the retirement savings of every day Australians, but performance is only part of the equation when it comes to remunerating investors that must think far into the future to get the best outcomes for members.
A new type of product making its way into the lifetime income market holds immense promise for super funds wanting to retain members’ assets when they retire while helping them to maximise their retirement income. But these products could pose some thorny issues for policymakers if taken up en masse.
The unique vulnerabilities of savings in the retirement phase of superannuation have prompted ASIC and APRA to demand funds do more to protect members against cyberattacks, fraud and scams.
The RBA says that while super funds have contributed positively to financial stability “up until now”, they face massive challenges around liquidity and should be considering everything from cyberattacks to another early release program in their planning.
Minister for Financial Services Daniel Mulino has concerns about bringing out the new class of adviser and continuing the Delivering Better Financial Outcomes due to the Shield and First Guardian collapse. Instead, the government’s priority has shifted to adding more consumer protections with an “extensive consultation period” coming.
Despite repeated warnings by regulators to do better, too many super funds remain woefully unprepared to deal with fraud, scams and cyberattacks, the Investment Magazine Chair Forum has heard. The regulators have also told the forum that many funds continue to miss the opportunity to learn from insights provided to them through customer complaints.
The Conexus Institute’s 2026 State of Super report says that up to 21 funds representing $400 billion in assets could merge in the near-medium term, with “sizeable consolidation” now possible in the for-profit fund sector.
ASIC deputy chair Sarah Court, currently the corporate regulator’s top enforcer in the Shield and First Guardian scandal, will succeed outgoing chair Joe Longo. The appointment comes as ASIC prepares to deliver an exclusive briefing on super fund scam protections at the Investment Magazine Chair Forum on Wednesday.
The annual Investment Magazine Salary Survey has revealed that 19 superannuation fund chief executives were paid more than $1 million in the 2025 financial year as funds try to attract and retain executives who can take on the challenge of leading the increasingly complex organisations.
AI risk is moving out of public markets and into credit and real assets, according to a report from Mercer, which says that funds must think about diversification differently to avoid overlapping exposures.
Super Members Council has argued that ASIC should include more examples of “modern aggressive” advertising tactics – like those used to lure investors into Shield and First Guardian – in its updated guidance on financial services advertising.
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