POWERED BY MOMENTUM MEDIA
APRA asked to explain mergers with under-performing funds
The Australian Prudential Regulation Authority (APRA) has been asked to explain how it is handling mergers which involve under-performing funds.
The regulator has been put on notice by Tasmanian Greens Senator Peter Whish-Wilson to explain its approach to mergers involving under-performing funds, including any examples which might have already occurred.
Whish-Wilson’s questioning took place during Senate estimates with APRA’s response expected to be gazetted next week.
Whish-Wilson asked: “Has APRA encountered examples where a lesser performing fund is seeking a merger partner, but is unable to find a willing successor fund?”
“Have APRA been approached by potential successor funds seeking advice or relief in order to receive underperforming assets in a merger with a lesser-performing fund?”.
He then asked what guidance APRA would offer to successor funds and lesser-performing funds which were considering a merger.
“Has APRA considered contingency measures to protect the value of (members) assets in underperforming funds that are unlikely to find a willing merger?” Whish-Wilson asked.
Recommended for you
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
With private asset valuations emerging as a key concern for both regulators and the broader market, Apollo Global Management has called on the corporate regulator to issue clear principles on valuation practices, including guidance on the disclosures it expects from market participants.
Institutional asset owners are largely rethinking their exposure to the US, with private markets increasingly being viewed as a strategic investment allocation, new research has shown.
Australia’s corporate regulator has been told it must quickly modernise its oversight of private markets, after being caught off guard by the complexity, size, and opacity of the asset class now dominating institutional portfolios.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
