POWERED BY MOMENTUM MEDIA
APRA cautions on price-driven insurance decisions
The Australian Prudential Regulation Authority (APRA) has cautioned superannuation trustees on selecting insurance based purely on price and against embarking too readily on internalising investment functions.
APRA member Helen Rowell sent the cautionary messages during the Association of Superannuation Funds of Australia conference in Perth, where she said trustee boards needed to think carefully about the insurance offerings they took to their members and whether what was ultimately delivered was appropriate.
"Trustee boards need to think carefully about what they are offering and their decisions should not be purely price-driven," she said.
Rowell said that, instead, trustees should be considering flexibility, choice and outcomes for members.
Commenting on the increasing number of super funds who had in-sourced elements of their investment process, Rowell said it was not a move that should be undertaken lightly and that APRA was concerned that the funds held the appropriate resourcing and expertise to undertake the role.
Recommended for you
The super fund announced that Gregory has been appointed to its executive leadership team, taking on the fresh role of chief advice officer.
The deputy governor has warned that, as super funds’ overseas assets grow and liquidity risks rise, they will need to expand their FX hedge books to manage currency exposure effectively.
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
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(%)
