KPMG identifies 10 super themes for 2023

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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