POWERED BY MOMENTUM MEDIA
Will heatmaps become benchmarks?
The Australian Prudential Regulation Authority (APRA) has confirmed that its new heatmaps will form an important element of the Business Performance Review (BPR) requirement being imposed on superannuation funds.
In new guidance issued to superannuation funds this week, APRA said that it expected that the heatmaps would represent an important starting point for superannuation funds.
The use of the heatmaps is made clear in an attachment to a letter signed by APRA deputy chair, Helen Rowell, responding to industry submissions.
It states: “APRA expects that the heatmap will be a starting point for comparative metrics and data that an RSE licensee would make use of in its BPR and outcomes assessment for MySuper products”.
However, it said that superannuation fund licensees were expected to look beyond the heatmap to consider a broad range of metrics and factors relevant to their business operations and the delivery of outcomes in order to reach a holistic assessment of performance.
APRA acknowledged that submissions received from some stakeholders had indicated that it would be beneficial for the regulator to develop and mandate the use of specific investment performance benchmarks.
It said some submissions also indicated that guidance should clearly state that the promotion of financial interests to members, as measured by investment returns, was the only measure or consideration upon which to make each outcomes assessment determination.
Recommended for you
A major super fund has defended its use of private markets in a submission to ASIC, asserting that appropriate governance and information-sharing practices are present in both public and private markets.
A member body representing some prominent wealth managers is concerned super funds’ dominance is sidelining small companies in capital markets.
Earlier this month, several Australian superannuation funds fell victim to credential stuffing attacks, which saw a small number of members lose more than $500,000.
Small- to medium-sized funds have become collateral damage in an "imperfect" model for super industry levies, a financial institution has said.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
93.34 3 y p.a(%)
2
Global X GlobalX FANG+ ETF
37.15 3 y p.a(%)
3
GAM LSA Private Shares AU I
33.96 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.68 3 y p.a(%)
5
Plato Global Alpha A
28.73 3 y p.a(%)
