Australian funds face more stringent performance expectations, pressure to merge

The combination of increased regulation and geopolitical risk is weighing heavily on smaller Australian superannuation funds, according to industry players. Pressure to perform is only likely to accelerate the pace of fund mergers, they say. A major contributor to this increased pressure is the new seven-year performance testing regime from the prudential regulator APRA, designed to highlight underperforming super funds. “The performance test forces investors to be more focused …