SuperStream taking a back seat to product
Super funds are using legacy systems to broaden investment options while SuperStream is barely getting a look-in, according to Bravura global head of product Darren Stevens.
Funds had expanded investment options to include direct equities and terms deposits in a bid to stem the flow of self-managed super funds (SMSFs), he said, while Cbus recently opened up direct property investment to members.
Investing in technology to comply with SuperStream had largely fallen behind the demands of MySuper, said ePASS product manager Mark Thomas.
Although funds were aware they would have to act, the issue was bigger than they thought and involved a whole host of workflow considerations, he said.
"We'll ask the question 'do you want us to come in and talk about SuperStream?' and they just haven't been responsive, because they've been so entrenched with MySuper.
"I think they're coming out the back end of that now and that date for SuperStream's looming large, so they're engaging with us on that," he said.
MySuper regulations were at the forefront of trustees' minds and technology was taking a back seat, at least for the moment, Stevens said. The technology infrastructure being implemented was not scaleable.
"My biggest concern and fear with that is what I'm seeing in the market is a lot of spaghetti code and spaghetti systems - where they're getting a system here that has to bolt to this system that has to bolt to this system. On the outside (it looks fine) but underneath it it's a real mish-mash of technologies," he said.
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
The peak industry body has welcomed new legislation reforming super advertising and onboarding, stating the changes built on recent Payday Super measures.
Funds are facing criticism after a new analysis found $33 billion is invested by super funds in companies expanding coal, oil and gas globally.
There is “no chance” of a cut by the Reserve Bank of Australia next week, according to UniSuper’s head of fixed interest David Colosimo.
State Super has begun its partnership with Frontier Advisors, transferring investment staff and taking a major equity stake to support long-term capability.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
220.82 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
110.90 3 y p.a(%)
3
Quay Global Real Estate Fund (Unhedged) Active ETF Hedged
89.15 3 y p.a(%)
4
SGH Income Trust Dis AUD
80.01 3 y p.a(%)
5
Global X 21Shares Bitcoin ETF
76.11 3 y p.a(%)
