POWERED BY MOMENTUM MEDIA
APRA has never encountered a fund that couldn’t be merged
The Australian Prudential Regulation Authority (APRA) has denied knowledge of any superannuation funds who wanted to merge but could not find a willing partner.
Answering questions on notice from Senate Estimates, the regulator said if it did come across such an instance it would be inclined to use its powers to enable the fund to make an orderly exit from the industry.
Answering questions on notice from Tasmanian Green Senator, Peter Whish-Wilson APRA said it would continue to have discussions with consistently underperforming funds that faced sustainability issues to ensure that they continued to act in their members’ best interests and were clear on the appropriate strategy moving forward, “noting the requirements of Superannuation Prudential Standard 515 ‘Strategic Planning and Member outcomes’ (SPS 515) in force from January 2020”.
In doing so, APRA referenced the use of its heat maps regime to identify and deal with underperforming funds.
“The underlying premise of SPS 515 and APRA’s heatmap publication is to identify underperformance across a range of metrics, so as to prompt trustees to take necessary and appropriate action to improve member outcomes,” it said.
“This action could include reducing fees to improve member returns, or more extreme action such as an exit or merger.
“APRA will continue to enhance its data collection and to ensure transparency of fund performance, and to use the full suite of its regulatory powers to ensure trustees are meeting their obligations under the prudential framework.”
Recommended for you
Vanguard Super has reported strong returns across most of its investment options, attributed to a “low-cost, index-based approach”.
The fund has achieved double-digit returns amid market volatility, reinforcing the value of long-term investment strategies for its members.
Australian super funds notched a third consecutive year of strong returns, with the median balanced option delivering an estimated 10.1 per cent over the 2024-25 financial year, but an economist has warned that the rally may be harder to sustain as key risks gather pace.
AustralianSuper has reported a 9.52 per cent return for its Balanced super option for the 2024–25 financial year, as markets delivered another year of strong performance despite the complex investing environment.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
