POWERED BY MOMENTUM MEDIA
Basel III reforms may impact superannuation fund cash strategies
The new global regulatory standards for bank capital adequacy, Basel III, may have a flown-on effect on the cash strategies of Australian superannuation funds.
While the banking reforms - developed by the Bank of International Settlements - primarily effect the capital management of global banking systems, MAP Funds Management chief investment officer Ross Endres said the reforms would definitely impact the management of MAP's cash pool and the possible returns that pure cash may earn in the future.
As a number of super funds make the return back to cash in their asset allocation, Endres said MAP would have to consider other solutions to maintain the strong performance he has seen in the asset class over the past two years.
"What is particularly pleasing for me is that we (MAP) took a strategic decision to focus on cash back in 2009 and we are seeing the results of that decision on the current returns of our fund now," he said.
"We are currently in discussions with a number of banks and other Australian deposit-taking institutions looking for the best solutions for our members."
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Jim Chalmers has defended changes to the Future Fund’s mandate, referring to himself as a “big supporter” of the sovereign wealth fund, amid fierce opposition from the Coalition, which has pledged to reverse any changes if it wins next year’s election.
In a new review of the country’s largest fund, a research house says it’s well placed to deliver attractive returns despite challenges.
Chant West analysis suggests super could be well placed to deliver a double-digit result by the end of the calendar year.
Specific valuation decisions made by the $88 billion fund at the beginning of the pandemic were “not adequate for the deteriorating market conditions”, according to the prudential regulator.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
