State Street has launched an investment analytics solution to help super funds tackle the Australian Prudential Regulation Authority's (APRA's) new requirements on investment and fund governance.
Prudential standard SPS 530 comes into effect on 1 July 2013 and requires super fund trustees to have specific investment governance frameworks in place.
APRA released draft prudential practice guides last December which said trustees will have to analyse and manage the liquidity of each investment option, and stress test the fund to assess the impact of extreme market conditions on investment option liquidity and asset classes.
Trustees will also be required to monitor the performance of investments and investment managers.
Head of State Street Investment Analytics in Australia, Babloo Sarin, said fund executives had expressed concern about meeting the new requirements.
"By allowing trustees and investment teams to drill through all levels of their fund's investment, they can analyse the sources of risk and return and monitor mandate compliance," he said.
"The new tools also include a risk platform called truView that can help funds comply with liquidity management requirements by testing a fund's investments for various factors such as liquidity levels in the event of market-based shocks as well as client-defined shocks."
