POWERED BY MOMENTUM MEDIA
(Dec-2002) Time to catch a breather
It’s been a demanding time for the super industry, and not because of the recent rush of Christmas do’s. Trustees have been bogged down communicating bad news to members and dealing with volatile investment markets, with some also trying to come to grips with unfamiliar investment products like hedge funds and talk that markets may have undergone a structural change that will alter the way they manage their assets in the future. Two years ago we were talking about contribution holidays. Now there’s talk of a looming crisis, as defined benefit funds slide into deficit.
Trustees are also under mounting pressure to cut costs, improve efficiencies and comply with regulatory demands. That representatives from watchdog bodies and shapers of policy dominate this year’s Most Influential list highlights just how much this regulatory burden is growing.
Just how busy super funds have been in adding new investment choices can be gleaned from the growing number of pages taken up by our Survey of Top 200 Corporate Funds. Corporate funds, after all, traditionally lag other funds in the number of options offered.
Trustees are also starting to tackle new issues like corporate governance, working out how to deal with their investment managers and how to run their own funds.
Super was clearly back on the radar screen this year after the Government made it part of its election campaign. But it’s also been a year of political disagreement and besides some tinkering at the edges, few real steps have been taken to improve future retirement savings.
Last year, we questioned whether the then recently appointed minister for revenue and assistant Treasurer, Senator Helen Coonan, would be able to pick up the super baton and run with it. Well run she has, with our panel voting her the Most Influential Person in Super 2002 and the industry applauding her recent balanced response to recommendations aimed at improving the safety in super.
Last year too, shadow minister for retirement incomes and savings Senator Nick Sherry vowed to keep his passion for super burning and has kept his word, launching his own policy and keeping us well informed with a consistent stream of releases and conference appearances.
With more regulation on its way, which will add to costs, and investment markets still jittery, next year looks likely to be just as busy and challenging. That’s unless Santa leaves some unexpectedly bright pressies in the super industry’s stocking this month, but perhaps he’s also too busy.
Recommended for you
The industry fund has called on ASX 300 companies to strengthen priorities around resilience, climate, and gender, while itself facing criticism over fossil fuels.
Industry fund HESTA has filed an appeal against an ATO decision on tax offsets from franking credits, with the Australian Retirement Trust set to file a similar claim soon.
The latest superannuation performance test results have shown improvements, but four in 10 trustee-directed products continue to exhibit “significant investment underperformance”, warns APRA.
The corporate regulator has launched civil proceedings against Equity Trustees over its inclusion of the Shield Master Fund on super platforms it hosted, but other trustees could also be in the firing line.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
74.26 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
72.60 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
44.46 3 y p.a(%)
4
Pengana High Conviction Equities B
39.12 3 y p.a(%)
5
Pengana High Conviction Equities A
39.05 3 y p.a(%)
