POWERED BY MOMENTUM MEDIA
APRA asked to explain mergers with under-performing funds
The Australian Prudential Regulation Authority (APRA) has been asked to explain how it is handling mergers which involve under-performing funds.
The regulator has been put on notice by Tasmanian Greens Senator Peter Whish-Wilson to explain its approach to mergers involving under-performing funds, including any examples which might have already occurred.
Whish-Wilson’s questioning took place during Senate estimates with APRA’s response expected to be gazetted next week.
Whish-Wilson asked: “Has APRA encountered examples where a lesser performing fund is seeking a merger partner, but is unable to find a willing successor fund?”
“Have APRA been approached by potential successor funds seeking advice or relief in order to receive underperforming assets in a merger with a lesser-performing fund?”.
He then asked what guidance APRA would offer to successor funds and lesser-performing funds which were considering a merger.
“Has APRA considered contingency measures to protect the value of (members) assets in underperforming funds that are unlikely to find a willing merger?” Whish-Wilson asked.
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
36.43 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
35.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
