As big super funds send more and more member money offshore, Brighter Super says its commitment to investing another $500 million in its own backyard is turning up assets it might not have found if it looked further afield – not to mention Olympic opportunities.
The Association of Superannuation Funds of Australia, led by CEO Mary Delahunty, has ordered a formal review of its unit providing technical regulatory services relating to SuperStream and other complex industry plumbing projects. The review, conducted by former IFM Investors executive Amara Haqqani, follows the defection of longstanding ASFA executive Hans van Daatselaar and his team of boffins to the rival Financial Services Council.
The chief innovation officer (CINO) is a role that combines the qualities of visionary, super persuader, and coach. It has gained traction in industries facing intense disruption and digital transformation, and now it’s coming to superannuation. The forward-thinking leadership embodied in the role will be critical in the long game of super and the transformation required to best serve the wave of retirees engulfing the system.
Team Super CIO Seamus Collins says the superannuation industry is “way too product focused” when it comes to retirement. Ahead of the Investment Magazine Fiduciary Investors Symposium in Healesville, Victoria, Collins says some form of soft default might be required to meet the needs of millions of members in the “missing middle”.
Super funds are under increasing pressure to develop cost-effective and flexible retirement income solutions, but they do not necessarily have to solve every part of the puzzle on their own. Partnerships with providers who bring deep expertise, additional execution grunt and valuable learnings are a critical component of success.
Minor tweaks to the Your Future Your Super performance test will not provide consumers the protection they require. A broad structural review of the test remains a far better idea than simply tinkering with it yet again, leaving many of its shortcomings unresolved and requiring further review in the not-too-distant future.
Through professional and personal upheaval, neurosurgeon Dr Charlie Teo has dealt with his own mental health issues, and he told the Investment Magazine Insurance in Super Summit that the experiences have left him with a clearer understanding of what mental health is and how it should be treated.
Treasurer Jim Chalmers’ confirmation that the government will likely tweak the annual super performance test is welcome, as the investment herding and ‘no frills’ operational mindsets exacerbated by the policy undermine the ability for funds to rise to their trustee obligations. Many of the critics pushing back against amendments to the test are fully displaying their anti-super bias.
One of the world’s largest pension investors, APG Asset Management, is buying into Australian renewable assets, attracted by the nation’s stable political and regulatory environment. In an interview with Investment Magazine, the fund says it’s also looking to invest more alongside like-minded partners including super funds and international pension players.
The superannuation industry prudential regulator says reforms to the Your Future Your Super performance test should be made if the downsides of the test no longer outweigh the benefits to members. APRA chair John Lonsdale said the regulator aims to strike a balance between financial system stability and allowing the entities it regulates freedom to innovate, and that it is nearing the end of its inaugural system stress-testing program.
Insignia Financial continues to stage a comeback in its superannuation business, but CEO Scott Hartley says it needs to invest more in member acquisition and improve member engagement processes that are still “circa 2000s”.
An Investment Magazine roundtable of senior super sector executives, in partnership with Northern Trust, has heard that the herding and peer ranking mentalities exacerbated by the Your Future Your Super performance test pose a risk to the long-term fiduciary thinking of investment teams. The conversation was informed by research on the systemic impact of ‘big super’ from The Conexus Institute and warnings from agencies including the Reserve Bank of Australia and International Monetary Fund.
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