Super funds approach their procurement of digital financial advice “counter to forming mutually beneficial relationships” with the provider – and if they want to get the most out of the relationship, they need to rethink how their teams are organised and how they run RFPs.
The Conexus Institute’s initial scepticism about the impact of the Retirement Reporting Framework reforms has been replaced by cautious positivity. But for the reforms to have meaningful impact they must stretch the industry, creating discomfort among funds to nudge them to do better by focusing not on what the industry can currently deliver, but rather the data that funds should be collecting to gauge the progress of their own retirement income strategies.
While the chief investment officer of Australia’s sovereign wealth fund says that it isn’t ready to step away from the tech opportunities available in the US market, there are “real opportunities” to exploit inefficiencies in other regions, including emerging markets.
The $98 billion HESTA is laying the groundwork for a more systematic framework for using AI across its total portfolio, solidifying use cases in research, forecasting, risk management and private assets that all centres on the objective of “seeing risks earlier and clearer”. But being a cost-conscious profit-to-member fund, it is striking a careful balance of identifying areas where it can add most value while introducing least complexity to its operations.
A boom in private credit in Asia continues to attract asset owners looking for consistent yield in a volatile geopolitical environment. But as the sector matures, asset owners face both opportunities and challenges, requiring smarter asset allocation, robust data platforms and increased digitisation to navigate.
In today’s increasingly uncertain environment, broadening investment exposure beyond traditional bonds and equities is becoming not just prudent but essential. But two guiding principles offer investors the best potential outcome and protection in a portfolio: never bet against America; and when in doubt, diversify.
The Retirement Leaders Summit provided a compelling insight into progress made by superannuation funds in fulfilling their Retirement Income Covenant obligations. While regulators continue to berate the industry for being too slow, The Conexus Institute has identified three things it says are coming down the pipeline that could significantly speed up funds’ responses.
AustralianSuper chief executive Paul Schroder has used an unprecedented National Press Club address to make the case for reforms including on financial advice laws, a ‘build to sell’ housing investment model and the Your Future Your Super performance test. The boss of the $400 billion mega-fund defended the governance and ambition of what he described as a globally unique “Australian rules retirement” system.
Paul Schroder’s invocation of Kenneth Hayne’s financial services royal commission in a high-profile national speech might have been in jest. But as the sector – and the $400 billion mega-fund he leads – comes under rightful scrutiny over poor member service standards, it could come back to haunt him.
Cbus has removed a major barrier to low-income members accessing tax-free retirement products by eliminating its minimum application requirement for opening an account-based pension, in a move policy and consumer groups say they want to see replicated across the industry. Cbus chief executive Kristian Fok says he wants the government to make changes to help low-balance members further, including removing minimum drawdown requirements.
The $350 billion Australian Retirement Trust is moving towards “total portfolio management” and joined-up investment thinking to better manage its FUM and the liquidity demands being placed on it by private and offshore assets and member needs.
A mere seven products failed the latest iteration of the YFYS performance test, the results of which were released on Friday. The test looks less and less fit for purpose as more and more funds learn to live within its constraints, but some of its biggest problems stem from its application to the smallest parts of the industry.
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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.
We acknowledge the Traditional Custodians of this land upon which Conexus Financial sits, the Cadigal of the Eora Nation. We recognise their continuing connection and unique cultural and spiritual relationships to the land, waters and community. We pay our deepest respects to them and their culture, and to Elders both past and present.
