POWERED BY MOMENTUM MEDIA
WTW urges caution on APRA heatmaps
International consultancy Willis Towers Watson has encouraged superannuation funds to use the Australian Prudential Regulation Authority’s (APRA’s) heatmaps with caution because they could be misleading for some funds.
The company has published its first superannuation update for the year urging caution on the basis of the data and timeframes used by the regulator.
“We would encourage trustees to use the heatmap with caution, as there are areas where it could be misleading for some fund,” it said.
“APRA has only included three and five-year return comparisons even though many MySuper products were established by rebadging the previous default investment option and so would have a longer performance history.”
“Funds with active management may have underperformed over this period but would be expected to have better performance over longer periods such as ten years,” it said.
“Further, APRA’s assumptions underlying its Simple Reference Portfolio and Benchmark Portfolio may not be appropriate for some funds, while the fee comparisons are not appropriate for members for whom employers meet administration costs.”
Recommended for you
A ratings firm has placed more prominence on governance in its fund ratings, highlighting that it’s not just about how much money a fund makes today, but whether the people running it are trustworthy, disciplined, and able to deliver for members in the future.
AMP has reached an agreement in principle to settle a landmark class action over fees charged to members of its superannuation funds, with $120 million earmarked for affected members.
Australia’s second-largest super fund is prioritising impact investing with a $2 billion commitment, targeting assets that deliver a combination of financial, social, and environmental outcomes.
The super fund has significantly grown its membership following the inclusion of Zurich’s OneCare Super policyholders.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
