An emphasis on post-retirement, outcome-based investing continues in 2016, to ensure members have access to flexible, tailored strategies that can meet very specific, individual needs. At a time when we cannot rely on markets alone, superannuation providers need to consider the following actions this year in order to achieve desired outcomes for their members.
- FOCUS ON OUTCOME BASED INVESTING:
Investment strategies need to have a stronger focus on the individual member, with tailored asset allocations based on demographics.
- PREPARE FOR THE POTENTIAL CHANGES TO SUPER TAX:
A wide-ranging review of tax is continuing under the new prime minister and we expect super to be back on the table.
- THE RETIREMENT PHASE CONTINUES TO BE A FOCUS:
Further attention is required in order to provide retirees with a flexible solution that provides adequate and sustainable income in retirement.
- REDEFINE OBJECTIVES IN A VOLATILE WORLD:
Low yields and heightened volatility lead to a higher reliance on risk management.
- A TIME TO TILT PORTFOLIOS TO ALPHA:
As market conditions change, alpha is expected to boost returns and mitigate outcomes in downside scenarios.
- REFLECT ON GOVERNANCE AND INVESTMENT BELIEFS:
With the above changes in priority and evolution of investment strategies, now is a good time to reflect on investment beliefs. One of the benefits of running mandates in house stems from flexibility and the ability to deviate from time to time.
- BOARD EVOLUTION:
Many super funds have made great advances in improving Board diversity, but more can still be done.
- BUILD A SUSTAINABLE STRATEGY FOR THE FUTURE:
Super is a long term investment, it makes sense to have a long-term investment mindset.
- TECHNOLOGY IS CHANGING THE FACE OF MEMBER ENGAGEMENT:
Consider robo-advice and online member access as education is now more critical than ever.
- HARVEST LOW HANGING FRUIT:
Operational aspects of super management are often overlooked and processes are rarely reviewed in depth.