POWERED BY MOMENTUM MEDIA
Regulatory change the key issue for super trustees
Scale is not a big issue in the minds of Australian superannuation fund trustees, with most worried more about regulatory change and market volatility, according to new research released this week.
The research, conducted and released by the Sydney office of US-based Parametric Trustees, identified the issues of most concern to trustees as being regulatory change, inadequate post-retirement solutions for members and the negative impact of a sharp market fall on member balances.
Also worrying trustees were issues such their fund's operations and business, such as keeping technology current and finding and retaining talent, as well as hidden costs that erode returns including tax, foreign exchange, brokerage, and low interest on cash.
The survey sampled the views of trustees from APRA-regulated funds, with Parametric acknowledging most responses had come from funds with funds under management of between $5 billion and $10 billion, and mostly industry funds.
It noted that scale did not seem to be an issue in the minds of respondents, with most respondents ranking at the bottom end of their response.
Commenting on the results, Parametric Australasia chief executive, Chris Briant said he believed the key themes for super trustees this year would be dealing with an (ever) changing superannuation tax and regulatory landscape, developing ‘CIPR' post-retirement solutions for members, and employing investment approaches designed to immunise members against market volatility and falls.
"Operational strategy, tax management, and implementation efficiency are also likely to feature in funds' 2016 strategic agendas," he said.
Recommended for you
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.
ASIC chair Joe Longo has delivered a blunt warning to superannuation trustees, cautioning that board-level ignorance of member complaints and internal failings will not be tolerated and could trigger enforcement action.
ART has cautioned regulators against imposing overlapping obligations on superannuation funds already operating under APRA’s comprehensive framework, saying that additional oversight should be “carefully targeted to address potential gaps in other parts of the market”.
The super fund has appointed Simone Van Veen as chief member officer.
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(%)
