Claims that the Future Fund is being conscripted for political proposes in addressing climate change are misguided. It is the only responsible course of action for this government to want to pull sensible levers to mitigate the climate crisis, while staying within the investment return and governance guardrails established by the fund’s founders.
A super fund’s operational resilience could be tested at any moment, from any direction. The robustness of technology, processes and systems obviously play a critical role in enabling funds to absorb shocks and to bounce back; but just as important is fostering an organisation-wide culture of resilience built on accountability.
Calamities and disasters can take many forms, and while some can be planned for, others cannot. But regulators are expecting super funds to be ready for them all. Novigi’s Kevin Fernandez explains how funds can put a good plan in place for building operational resilience which – if cannot help with preventing a crisis – can help funds recover fast.
With APRA’s Prudential Practice Guide CPG 230 Operational Risk Management now finalised, and the 1 July 2025 effective date looming, it is critical that funds understand the data and technology impacts. If organisations can get their approach right, it could be a potential opportunity to run safer and stabler operations, rather than simply a box-ticking exercise.
ASX-listed Insignia Financial has rejected the non-binding $2.7 billion offer from Bain Capital, saying the bid “does not adequately represent fair value” for shareholders.
A 12-month review by APRA into super funds’ unlisted asset valuation and liquidity practices has highlighted a range of findings the regulator has labelled as “concerning”. The review echoes similar concerns raised in the independent report by Deloitte that revealed shortcomings with how the skills and competencies of trustees appointed to the Cbus board are assessed and verified.
Avoided emissions may be getting harder to avoid, and as the World Business Council for Sustainable Development (WBCSD) conducts consultation on planned refinements to its guidance, it will no doubt be keeping a wary eye out for corporate contortionists keen to bolster their climate credentials.
With hundreds of thousands of members retiring every year, super funds do not have the luxury of time to develop effective retirement income solutions. With the regulators already on their backs, solving the issue quickly will require a collaborative effort and smart ways of combining the scale and efficiency offered by funds with the personalised expertise of financial advisers.
Ownership of the surviving wealth institutions may be set for another shake-up as big global investors circle Insignia Financial and Colonial First State. But it remains to be seen whether Wall Street buyers have paid sufficient attention to how these assets became stranded in the first place and if they could resist the temptation of vertical integration.
Life insurer TAL and super fund administrator MUFG Pension & Market Services (formerly Link) have been questioned by the Senate about their respective roles in delays to insurance claims lodged by Cbus members. TAL has disputed the characterisation of its relationship with Cbus as providing incentives for the fund to deny or delay claims, while MUFG declined to say whether it agreed with Cbus chair Wayne Swan’s assertion that the delays were its fault.
AMP Super has become the first Australian super fund, and one of the first global pension investors, to allocate money into cryptocurrency. It gained the exposure through an internal quant trading program of bitcoin futures in its DAA program. Sceptical observers say the level of interest in cryptocurrency from funds is “very correlated” with market highs, but the lack of economic fundamentals weakens the long-term investment case.
Former Future Fund chief investment officer Sue Brake has been appointed to the NZ Super board.
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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.
