POWERED BY MOMENTUM MEDIA
Regulatory bar for super set too low, DST says
Those super funds that aspire to simply comply with government regulation amid the current spate of challenges being faced by the sector are setting the bar too low, according to Luke Nardella, superannuation and wealth management lead at financial software provider DST Systems.
While compliance could be enough to keep the regulators happy, it won’t be enough to be a real contender in a future where fund members are looking for something more and funds are aggressively consolidating, Nardella said.
“Clearly, setting your fund to meet the minimum will do nothing more than place you in a chancy, confusing race to the bottom,” he said.
Nardella therefore suggested a focus on four areas if a super fund wanted to remain in control of its own operations, while also maintaining the flexibility to meet any challenge it may face.
The first area was development of a growth mindset, whereby the fund isn’t constantly “chasing the regulator’s tail,” but focusing on members, not just regulations.
Nardella also said planning should be a focal point, with a fund having a clear understanding of how its business operates today and the gaps it needs to fill in order to move forward.
He also emphasised the importance of building seamless and highly automated processes, as well as being clear about the human resources a fund needed – both in normal and peak workload times – as well as the skills and knowledge its people required.
Recommended for you
Private market assets in super have surged, while private debt recorded the fastest growth among all investment types.
The equities investor has launched a new long-short fund seeded by UniSuper, targeting alpha from ASX 300 equities using AI insights.
The fund has strengthened efforts to boost gender diversity, targeting 40:40:20 balance across its investment teams by 2030.
The lower outlook for inflation has set the stage for another two rate cuts over the first half of 2026, according to Westpac.
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(%)
