As super fund CIOs return to work for 2025, all eyes are on two things: Donald Trump’s presidency, and inflation. But they’re not the only issues that will drive investment decisions and returns, and some of them may present an unfamiliar set of challenges for a cohort of investment professionals that has grown up experiencing a particular set of market and economic conditions.
Some believe that dual-class share structures represent worst-in-class corporate governance practice, undermining the widely accepted principle of one share, one vote. Dual-class shares continue to be the subject of much debate, as they give some investors voting rights that are vastly disproportionate to their economic interests. But as Australian asset owners increasingly invest abroad, most already have investments in big dual-class stocks like Meta Platforms, Alphabet, Apple and Berkshire Hathaway.
The government has established the Regulatory Initiatives Grid, aiming to better streamline and coordinate regulation in the financial sector to help build a more competitive, dynamic and productive economy.
Electro-technology profit-to-member fund NESS Super has partnered with digital advice provider Otivo.
The median growth option in super funds are on track to finish the 2024 calendar year with an 11 per cent gain, according to the latest estimate from research house Chant West.
Australia’s super funds have emerged as truly global institutional asset owners, attracting the attention of peers and governments around the world. But Investment Magazine’s 2024 coverage detailed how the rapidly growing sector is also grappling with serving members in both accumulation and decumulation and expectations of world-class customer service.
If suggestions of a royal commission inquiry into profit-to-member super funds come to pass, the sector would be well-advised to embrace the scrutiny it brings with it and to avoid repeating the mistakes the Coalition and the banks made in trying to stave off the Hayne royal commission.
Super fund REST has appointed two general managers to lead its workplace culture and employee experience development.
Across 91 submissions to Treasury’s consultation on the retirement phase of superannuation a common theme emerges: without better gathering, sharing, analysis and use of data, funds stand little chance of being able to tailor retirement solutions to the needs of members. Failing to do that could undermine the government’s efforts to expand the provision of retirement advice by super funds.
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.
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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.
