KPMG identifies 10 super themes for 2023

19 January 2023
| By Laura Dew |
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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.
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