POWERED BY MOMENTUM MEDIA
Funds question Choice heatmap methodology
Superannuation funds have raised questions about the methodology used for the Choice heatmaps, according to the Australian Prudential Regulation Authority.
Last week, the Treasury said it had concerns over data accuracy and presentation of the Choice heatmaps which had been more difficult to compile than for MySuper funds.
Speaking to Senate estimates, APRA executive director for superannuation, Suzanne Smith, said trustees of poorly-performing super funds were concerned about the methodology used rather than data accuracy.
“Most of those trustees haven't raised issues so much in relation to the accuracy or the quality of the data we used for the choice heatmap, which was the super ratings data. Nor have they raised questions about whether it was appropriate for us to use it. What they've raised some questions about is the methodology for mapping the data.
“The super ratings data isn't at a level of granularity that it would be if we had our own data. So the collections that we will do in the super data transformation program will take that data to another level of granularity, which should improve some of those elements.
“What we've seen is the majority of trustees, though, acknowledge that their performance has been poor. Those poorly-performing funds that were recorded in the choice heatmap have acknowledged that their performance was poor and that they have started to look at what actions they can take to improve that performance which will ultimately be of benefit to members.”
Smith said she was hopeful that the trustee-directed performance test would be ready for the 1 July start date.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
Governor Michele Bullock took a more hawkish stance on Tuesday, raising concerns over Donald Trump’s escalating tariffs, which sent economists in different directions with their predictions.
Equity Trustees has announced the appointment of Jocelyn Furlan to the Superannuation Limited (ETSL) and HTFS Nominees Pty Ltd (HTFS) boards, which have oversight of one of the companies’ fastest growing trustee services.
Following growing criticism of the superannuation industry’s influence on capital markets and its increasing exposure to private assets, as well as regulators’ concerns about potential risks to financial stability, ASFA has released new research pushing back on these narratives.
A US-based infrastructure specialist has welcomed the $93 billion fund as a cornerstone investor.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
