Unlock value for your members

We help clients understand what drives their value, which areas offer the best growth potential and how financial product offerings can be optimised across different segments. With superior analysis and advice, supported by a vast array of industry data, we are well placed to help funds and employers navigate the complexities of our industry. Our market views are regularly sought by funds, service providers, key industry stakeholders and employers.

Innovation – ORTC Protect

ORTC Protect is a new and innovative product for both retail and profit for member funds, for ORFR reserves, that provides a mechanism to deliver direct financial benefits to members, promotes portability and provides for the release of Trustee Capital to promoters of retail super funds. ORTC Protect enables the return / refund of member funded ORFR back to industry and corporate fund members.

ORTC Protect is a new and innovative product for both retail and profit for member funds, for ORFR reserves, that provides a mechanism to deliver direct financial benefits to members, promotes portability and provides for the release of Trustee Capital to promoters of retail super funds. ORTC Protect enables the return / refund of member funded ORFR back to industry and corporate fund members.

Current guidance for APRA regulated superannuation funds is to maintain an operational risk reserve equivalent to 0.25% of net assets. This is likely to still be the case following the current SPS 114 consultation.

The reserve can be funded by members or by an allocation of RSE-Tier 1 Capital as Operational Risk Trustee Capital (ORTC).

The current 0.25% ORFR reserve translates to ~$6.4 billion across the industry, held outside the members accounts, of which we estimate $5 billion to be member funded.

ORTC Protect sees retail funds utilising their existing Trustee Capital structure and industry funds creating a Trustee Capital structure for the purpose of ORFR reserves. Any current member-funded ORFR reserve is refunded to members, increasing their balance where they also earn an ongoing income benefit.

With the increase of Superannuation Guarantee to 12%, and the increase to the contribution cap, members will be levied further to maintain the ORFR reserves, either by way of member funded or indirectly through the cost of Trustee capital. ORTC Protect can manage and avoid that burden on the member, whilst maintaining alignment with the purpose of the ORFR reserve.

ORTC Protect facilitates the sustainability of the superannuation industry by reducing friction points in regard to top ups of ORFR reserves by the go forward fund in a merger process.

Insights

Market Insights

  • Market analytics and bespoke fund benchmarking.
  • Full business case support for investment and business proposals.
  • Identification of merger opportunities across the wealth management industry.
  • Merged fund analytics, platform assessment and provider due diligence.

Service provider benchmarking & tender management

  • Full assessment of product designs relative to market innovation.
  • Utilisation of SuperRatings’ close relationships with service providers to facilitate tender process.
  • Management of end-to-end selection of providers.
  • Review of internal frameworks and transition assistance.

Corporate Super Reviews

  • Identifying what is important to companies in a corporate superannuation fund.
  • Market insights including navigating the current regulatory environment and the Royal Commission.
  • Benchmarking existing superannuation provider against available funds in the industry.

Important information: Any express or implied rating or advice is limited to general advice, it doesn’t consider any personal needs, goals or objectives.  Before making any decision about financial products, consider whether it is personally appropriate for you in light of your personal circumstances. Obtain and consider the Product Disclosure Statement for each financial product and seek professional personal advice before making any decisions regarding a financial product.