Concerns remain about unintended consequences that are yet to arise, but Aware Super CIO Damian Graham believes the government’s second iteration of the performance test is a ‘reasonably pragmatic middle ground’.
Limited scope, benchmarking issues and a failure to identify diversification risks were some of the key issues plaguing the proposed performance test according to speakers called up by the Senate hearing in Sydney Wednesday morning.
APRA reporting requirements will only heighten the challenge for funds of understanding, mapping and tagging increasing amounts of data, and directing it towards various insights and reporting standards, experts have highlighted.
A universal pension scheme could result in “taking some off the top” by essentially removing or tapering tax concessions for higher income earners and redistributing these savings to middle income earners, Mercer's David Knox highlighted.
The $50 billion fund's deputy CIO - brought onto the panel to replace a sick Sam Sicilia - said the fund had enough liquidity amidst the early release scheme to manage "well beyond even the worst scenario we could imagine".
Members might end up being stranded in funds that become undesirable to potential suitors because they have a chance of underperforming over multiple years or hold poor preforming assets relative to a listed benchmark, new research shows.
The key to addressing complexity and subjectivity in my experience is through good engagement. For engagement to work there needs to be a level of trust. Trusting can be difficult when significant agency issues exist.