POWERED BY MOMENTUM MEDIA
KPMG identifies 10 super themes for 2023
Global consultancy KPMG has identified 10 themes for superannuation funds to watch in 2023, including global expansion, financial advice and member retention.
The 10 themes were:
- Market volatility: KPMG forecast continued market volatility and for members who had switched into high growth options to face a “bumpy ride” this year;
- Public and private assets: The balance of public and private assets within a fund would have a critical impact on the investment and operational risk profiles.
- Global expansion: Funds in Australia were looking overseas while overseas investors were entering the Australian market.
- ESG and climate risk: Funds would have a role to play in assisting the transition to net zero and members would want to see their super fund seeking to drive better environmental and social outcomes.
- Superannuation fund mergers: Merger activity was expected to continue but funds would have to consider whether they had the time and resources to devote to them versus continuing to grow their own assets;
- Member acquisition and retention: Membership would be crucial to how funds could grow, particularly as newly-introduced stapling measures meant members could leave and join funds more easily.
- Retirement: KPMG expected to see more innovation in the area of retirement income strategies as they sought to retain members during the decumulation space.
- Financial advice: Regulatory reform via the Quality of Advice Review could assist super trustees to deliver approporaite advice into retirement, but this would likely be a three-year process rather than an immediate change;
- Transformation and digitization: Funds would need to realise the benefit of scale by operating more efficiently and allowing member fee reductions. Members would also seek digital front-end services including apps and web portals; and
- APRA increased prudential requirements: The Australian Prudential Regulation Authority was modernizing its prudential architecture with a series of reforms underway.
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
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
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
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
