POWERED BY MOMENTUM MEDIA
WTW urges caution on APRA heatmaps
International consultancy Willis Towers Watson has encouraged superannuation funds to use the Australian Prudential Regulation Authority’s (APRA’s) heatmaps with caution because they could be misleading for some funds.
The company has published its first superannuation update for the year urging caution on the basis of the data and timeframes used by the regulator.
“We would encourage trustees to use the heatmap with caution, as there are areas where it could be misleading for some fund,” it said.
“APRA has only included three and five-year return comparisons even though many MySuper products were established by rebadging the previous default investment option and so would have a longer performance history.”
“Funds with active management may have underperformed over this period but would be expected to have better performance over longer periods such as ten years,” it said.
“Further, APRA’s assumptions underlying its Simple Reference Portfolio and Benchmark Portfolio may not be appropriate for some funds, while the fee comparisons are not appropriate for members for whom employers meet administration costs.”
Recommended for you
In its pre-election policy document, the FSC highlighted 15 priority reforms, with superannuation featuring prominently, urging both major parties to avoid changing super taxes without a comprehensive tax review.
The Grattan Institute has labelled the Australian super system as “too complicated” and has proposed a three-pronged reform strategy to simplify superannuation in retirement.
Super funds delivered a strong 2024 result, with the median growth fund returning 11.4 per cent, driven by strong international sharemarket performance, new data has shown.
Australian Ethical has seen FUM growth of 27 per cent in the financial year to date.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
36.43 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
35.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.72 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
27.64 3 y p.a(%)
