Treasury’s consultation on a set of best-practice principles for retirement income solutions sets out the things all funds should do to give members the best possible outcomes. The guidelines, if implemented, will lift standards across the superannuation industry but critics say thatfunds must also stay focused on the highly individualised needs of members.
Amid rising volatility and regulatory pressure, Australian asset owners are turning to derivatives and smarter collateral strategies to boost liquidity and resilience. By broadening collateral beyond cash and leveraging triparty structures, institutions can unlock operational alpha and protect portfolios – positioning themselves to thrive in a rapidly evolving global landscape.
The Albanese government is expected to hold a review of the Your Future Your Super performance test within the next year to ensure super funds can invest in members’ best financial interests. While supporters credit the test for weeding out poor funds and helping to keep fees low for members, critics warn it has encouraged herding behaviour and disincentivises responsible investment.
A strong June quarter drove AMP’s superannuation division to positive net cashflow for the first time in eight years. Chief executive officer Alexis George says there’s more to be done to improve inflows and stem non-pension outflows but that the business is on-track to achieve sustainable positive cashflow in FY26.
New Minister for Financial Services Daniel Mulino will push ahead with minimum member service standards in the superannuation industry following a string of poor insurance and death benefit claims handling incidents. In an exclusive interview with Investment Magazine, the minister says the super system is an integral part of Australia’s social safety net, but that the government wants to make it “stronger”.
The financial services sector has an important role to play in boosting economic productivity and resilience, says Assistant Treasurer and Minister for Financial Services Daniel Mulino ahead of the Albanese government’s high-profile Economic Reform Roundtable later this month.
Sonya Sawtell-Rickson joined HESTA as the health industry workers’ super fund was taking steps towards investment internalisation and a total portfolio approach. She says the moves have been vindicated not only by member returns but in the “joined-up” conversations the now-$96 billion fund has with the companies it invests in.
The Financial Services Council has recruited a trio of Association of Superannuation Funds of Australia staffers as the rival lobby groups compete for peak body status in the fractured and politically charged $4 trillion sector. The raid follows the FSC’s hire of former ASFA commercial director Justine Earl-Smith late last year and addition of CareSuper and Brighter Super to the FSC membership.
Having walked away from one well-advanced merger this year already, pressure is on the TelstraSuper board to make its latest merger proposal stick. But as it bids to compete with the two largest mega-funds, Aware Super is feeling the heat too.
An external panel has recommended that the University of Sydney minimise investments in defence and security-related industries within its $770 million private asset portfolio rather than divest and book a $67 million loss.
Regulatory assessment of super fund’s retirement income strategies (RIS) is a near certainty. The YFYS test is probably the most example of how assessment can drive a range of industry behaviours, not all of which align with best member outcomes. The Conexus Institute says this highlights the importance of developing a well-framed RIS assessment framework at a regulatory and industry level, with capabilities at the foundation.
Super funds’ retirement income covenant deliberations address longevity risk in a way that often leads to a product-led solution. But new research suggests that if funds can engage members well before they retire to help them make simple investment choices it can significantly alleviate the risk they face of outliving their capital and give them more confidence to spend what they have saved.
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