🇦🇺Australia

Fehlentscheidungen durch unzureichende IPS-Überprüfung

2 verified sources

Definition

Investment Policy Statements for Australian super funds (for example, State Super’s Investment Policy Statement) explicitly link investment strategy and asset allocation to scheme objectives, liability profile, cash flow requirements, diversification and risk management.[3] ElectricSuper’s IPS notes that investment returns directly affect the cost of defined benefit liabilities to employers, and the Board regularly seeks employers’ views on the appropriate risk profile.[6] If IPS reviews are infrequent, backward-looking or not properly integrated with updated liability valuations and cash-flow projections, portfolios can remain misaligned (too conservative or too aggressive) for multiple years. Logic-based estimation: for a AUD 10bn fund, a persistent 0.25–0.75% per annum deviation from an optimally reviewed strategy equates to AUD 25m–75m per year in foregone risk‑adjusted return or unnecessary funding cost. The IPS review process is central to ensuring that strategic asset allocation, diversification and liquidity positioning remain appropriate over time; weaknesses in that process translate directly into decision errors with large financial impact.[3][6]

Key Findings

  • Financial Impact: Quantified (logic-based): Approx. 0.25–0.75% of assets per year in foregone performance or excess risk due to misaligned strategic asset allocation; for a AUD 10bn fund, this is roughly AUD 25m–75m per year.
  • Frequency: Ongoing, annual to triennial: each strategic review cycle where IPS and strategy are not properly aligned to updated liabilities, member demographics or regulatory expectations.
  • Root Cause: Manual, document‑centric IPS reviews without integrated liability and risk analytics; lack of scenario analysis and stress testing embedded in review; delays between actuarial valuations and IPS updates; insufficient Board visibility into the quantitative impact of different strategic choices.[3][6]

Why This Matters

The Pitch: Australian pension funds in Australia 🇦🇺 lose 0.25–0.75% of assets per year in foregone performance or excess risk because IPS reviews do not systematically align strategy with liabilities, cash flow and risk constraints. Automating data‑driven IPS review and monitoring can recover tens of millions of AUD annually for a mid‑sized fund.

Affected Stakeholders

Trustees / Board members, Chief Investment Officer, Head of Asset Allocation, Head of Risk, Actuary / Head of Actuarial, Investment Committee members

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Financial Impact

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Verstöße gegen APRA-Investment-Governance-Anforderungen

Quantified (logic-based): Approx. AUD 0.5m–2m per significant APRA investment-governance remediation program over 1–3 years (combination of 3–5 internal FTEs at ~AUD 150k–200k per FTE per year plus AUD 300k–600k in external advisors).

Sanktionen wegen Verstoß gegen SMSF-Investitionsanforderungen

Quantified (logic-based): Approx. AUD 3,000+ per year in extra tax on AUD 200k non-compliant investments (tax at ~45% instead of 15%) plus typical ATO SMSF administrative penalties of AUD 1,000–4,000 per contravention.

Kapazitätsverlust durch manuelle IPS-Überprüfungsprozesse

Quantified (logic-based): Approx. 500–1,500 internal hours per major IPS review cycle (every 2–3 years), costing roughly AUD 75,000–225,000 per cycle at ~AUD 150/hour blended cost; 50–70% of this (AUD 37,500–157,500) is avoidable coordination and rework effort.

Fehlentscheidungen bei Asset-Allokation durch ungeeignete aktuariellen Annahmen

Estimated opportunity cost of 0.5–1.0% of assets per annum from suboptimal asset allocation in a AUD 100–500 million DB fund, i.e., AUD 0.5–5 million per year, cumulating to AUD 2.5–25 million over 5 years.

ALM Modeling Delays

20-40 hours per quarterly ALM review at AUD 500/hour = AUD 10,000-20,000

Poor ALM Decisions

AUD 25% excess contributions for underfunded plans (e.g., 80% funded requires 125% levered assets)

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