Members can be as big a risk to their own retirement savings as market volatility, but Aware Super has implemented a cross-fund approach to making sure they don’t crystallise losses at the bottom of the market. Still, key questions around retirement remain unsolved.
When Malaysia’s Employees Provident Fund (EPF) was established in 1951 the average retirement age in the country was 55 and life expectancy was 54. Today the retirement age remains the same, while the average life expectancy has increased 20 years. EPF chief executive officer Ahmad Zulqarnain Onn says managing accumulation is the “easy part”, while the real challenge lies with decumulation, and boosting voluntary contributions is key.
Aboriginal Investment NT has partnered with JANA to invest hundreds of millions of dollars in funds that will ultimately be used for nation-building investments. But it also wants to team up with other asset owners and managers to bring more impact to the Northern Territory.
Hostplus CEO David Elia said that the Labor Party’s return to power in last Saturday’s election is “incredibly positive” for the superannuation sector for the certainty it will provide around preservation. The fund also sees more opportunities to work with the government in energy transition and housing and lauded its plan to make Australia a major critical minerals supplier to the world.
The emphatic return of the Albanese Labor government to power should provide comfort to the superannuation sector, especially profit-to-member funds that had become a key target of the now depleted Dutton opposition. But they would be wise to avoid any complacency over the repudiation of right-wing populist approaches to super.
Labor will return to power with an expanded mandate and presence in the federal Parliament, but there are questions over its commitment to financial advice reform, following the retirement of Stephen Jones.
The departure of Brett Chatfield from Cbus and Damian Graham’s shift from Aware Super CIO to its head of international are clear examples of a renewal and refreshing of investment teams taking place across the Australian industry and across the globe. Some changes are proactive, reflecting changing markets and investment environment; others plug gaps left by resignations or retirements. Either way, renewal is healthy.
Calls for a more flexible superannuation system are emerging as a mainstay of Australia’s populist Right, with minor parties doubling down on the Coalition’s push for super to be opened up to first home buyers. It’s a sign the ‘super wars’ are taking on a Trumpian hue with implications far beyond Saturday’s election.
Improving super fund member services will be underpinned by a firm grip on member data and the effective use of technology to innovate. But innovation can only flourish in organisations where it’s encouraged from the top down, putting the onus on trustee directors and fund executives to understand how technology is being used and the partners the fund is working with.
Generative AI might not yet be perfect but the key to successful implementation is to start today, because waiting for perfection could mean missing out on significant gains. But when AI is paired with thoughtful implementation and human oversight, its potential to solve real-world problems in financial services is improving rapidly.
The recent bout of tariff-induced chaos has reminded funds of the importance of good investment data, and Aware Super is investing heavily into its internal operating platform to make sure its teams have what they need to respond to a more volatile market environment.
The past two years have been a challenging time for private equity investors thanks to low deal activities, falling distributions and tough exit environment. At FIS Singapore, a panel of investors examine how secondaries can help alleviate the asset class stress in portfolios.
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