- The Standard Risk Measure (SRM) and its continuing value to members
- The definition of “risk” for a superannuation fund member
- Viewing risk from the perspectives of Trustees
- Measuring risk for retirees
- Traditional risk measures in the context of long horizon superannuation fund investing
- Risks of unlisted investment assets
- The importance of investment time horizons in measuring investment risk
- The different investment risks faced by accumulation and pension members
- Investment risk for super funds
- Sequencing risk
- Longevity risk
- Moving towards addressing retirement risks for superannuation fund members
- The key risks as members approach and enter retirement
- Life cycle strategies – Making sense of Life Cycle Investment options.
- Unlisted asset investments
- Valuations of unlisted assets
- The risks of unlisted assets
- Risks from the Trustee perspective
- The risks to superannuation fund members of inadequate advice
- Member advice in a perfect world and the importance of advice in reducing risk to members
RISK 2024 Schedule
Schedule, program and topics will be updated soon
DELEGATE REGISTRATION & COFFEE
STEPHEN HUPPERT
Independent Consultant & Advisor
• What is the SRM
• How the SRM originated
• Why superannuation funds universally adopt the SRM
• Examples of the SRM “in action”
• Examining the value of the SRM for retirement income products
• How asset allocations can be tailored for different time horizons to mitigate risk
• Why traditional measures using market volatility may not always be appropriate for the long horizon investor
• Investment risk measures adopted by overseas superannuation funds
• Embracing alternative risk measures
• Why the risks are different for accumulation and pension members
• Why investment risk varies between individual members
• Traditional measures of (a) pre and (b) post-retirement risks
• Why traditional risk measure may not always be appropriate
• Simple strategies to mitigate the different risks of pre and post-retirement investing
10:50 MORNING COFFEE & NETWORKING
• The SRM or alternative risk measures
• Has the SRM reached is “best before” or “use by” date?
• Do superannuation fund members fully understand the relevance of the SRM?
• Are there more appropriate super fund investment risk measures, if so, what are they?
• The importance of sequencing risk to members approaching retirement
• Historical data illustrating the impact of sequencing risk
• To what extent does the fact that members may withdraw only small regular amounts over more than
20 years in retirement mitigate sequencing risk?
• How effective are life cycle products in mitigating sequencing risk?
12:40 LUNCH BREAK & NETWORKING
• What does longevity risk mean?
• Why other risks eventually morph into a single longevity risk?
• Is longevity risk the “mother of all risks”
• The role of annuities in mitigating longevity risk
• Other strategies to mitigate longevity risk
• The costs of mitigating longevity risk
• Innovations to reduce retiree risk
• How far the industry has come and how far it has to go
• The extent to which super funds are adequately resourced to address risk for members in retirement
• Differing requirements and risks for different members
AFTERNOON TEA & NETWORKING
• What is risk intelligence and why is it important?
• How can we increase the risk intelligence of my fund?
• What are the barriers to becoming risk intelligence?
• Data and systems interoperability
• Valuation consistency
• Regulatory compliance
• Operational model interdependency
• Key personnel l risk
• Risks with insourced investment management
• Different solutions for different members
• The need for tailored solutions to address risk
• Analysing the key risks and their relevance to retirees
• The extent to which the age pension can be the
ultimate risk mitigator
CLOSING REMARKS FROM THE CHAIR
1 hour networking drinks
8:20 DELEGATE REGISTRATION & COFFEE
STEPHEN HUPPERT
Independent Consultant & Advisor
• How effective have life cycle strategies proved to be in enhancing member outcomes?
• Can life cycle strategies be deployed effectively with limited member data
• Is there a trade off with investment returns?
• What could be done to enhance life cycle products for members?
• Unlisted assets have long been embraced in DB funds but are they equally appropriate for DC funds?
• The risks of daily pricing and infrequent asset valuations
• Are Australian super funds too heavily exposed to unlisted assets?
• Are liquidity and concentration risks greater than they might appear?
• The issues with valuations of unlisted assets
• The pros and cons of last round versus mark to market valuations
• Is it possible to adopt daily valuation proxies for unlisted assets?
• The impact on member equity
10:30 MORNING COFFEE & NETWORKING
• What are the key risks with holding unlisted assets in the portfolio?
• Is it possible to value the assets accurately?
• Have super funds been too slow in revaluing unlisted assets in changing economic conditions?
• Should valuation methodologies be consistent between superannuation funds?
• Should the regulator prescribe valuation methodologies?
• Is APRA doing enough to mitigate the risks of inappropriate asset valuations?
• The expectations of the regulator
• Ensuring disclosure is appropriate and accurate
• Helping members make informed choices
• How ESG compliance and disclosure may present risk to both members and Trustees
12:40 LUNCH BREAK & NETWORKING
• The need for advice
• Findings of the Royal Commission on financial advice
• Why super funds may be well placed to provide advice
• Recognising the limitations of advice by superannuation funds
• Do Trustees have a fiduciary duty to provide advice?
• What are the risks to the Trustees of providing advice?
• Examples of how advice can reduce risk for both members and Trustees
• The logistics of providing individual advice to members
• The limitations of robo advice and how AI may assist
2:50 AFTERNOON TEA & NETWORKING
• Fraud/money laundering risks and what Trustees should be doing to mitigate those.
• The current state of fraud within the industry Cyber Risk
• The impact of the Mark McVeigh case
• Implications of ESG on long term investment returns
• Ensuring the fund can demonstrate ESG compliance
• Reputational risk
Closing remarks from the chair
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