Super Review

Global factors

Global equity super funds return best in Q1

The average global equity fund had superior returns at 6.07% during the first quarter of 2021 compared to its Australian equity and Asia Pacific ex Japan equity super funds, according to data.

Group life insurance

Key RC recommendation ‘kicked down the road’

Despite insurance becoming more important due to COVID-19, Treasury has not progressed with legislating universal terms and conditions in insurance within super, according to a lawyer.

Significant danger in lack of YFYS detail

A key Parliamentary Committee has been warned that there are significant dangers for the superannuation industry in the lack of detail around the Government’s Your Future, Your Super legislation.

Fees

Not easy for industry fund members to find total fees

An adviser has found that his client’s industry superannuation fund fees were over 1% higher than what was overtly disclosed by the fund.

Australian money

Restricting trustees from making certain investments not in members’ best interests

The idea that excluding assets from a trustee’s investment universe will improve outcomes is flawed and contradicts existing law, according to AustralianSuper.

24 March

APRA backs reversing legal burden of proof in super

The Australian Prudential Regulation Authority has backed a controversial key element of the Government’s Your Future, Your Super legislation which reverses the legal burden of proof with respect to superannuation funds within a best financial interests duty.

A key superannuation body has acknowledged the damage inflicted by negative publicity on financial services licensees and has urged the Government to move cautiously in imposing a more rigorous self-reporting regime, including naming licensees involved in

23 March

Tax Ombudsman points out glaring YFYS oversight

Who got left out of the Your Future, Your Super information matrix? According to the Tax Ombudsman it is the members themselves.

23 March

Mine Super CEO steps down to lead cloud platform

Harry Mitchell has accepted to lead Recreo Financial which will merge with corporate and super trustee Certane Group.

2021-01-29 00:30:00

Knowledge Centre

Themes driving the need for a more sustainable approach to investing

Sustainable investing is on the rise, and COVID-19 has only sharpened the focus of policy makers and investors alike on the need to drive sustainability.

Ausbil

The Federal Government has been urged to increase funding for the Superannuation Complaints Tribunal in the May Budget as it again struggles to meet its workload.

23 March

Institutional investment

Instos have only made limited progress on systemic trends

Many institutional investors believe they are a lot more advanced than they actually are when it comes to tackling risks from systemic trends like climate change, according to a report.

QSuper has worked with the ATO to help pay out a member’s tax savings when they retire and transition to an income account.

23 March

Hume backs growth in SMSFs

The Government may have upset APRA-regulated funds via its Your Future, Your Super legislation but it is backing the growth in self-managed funds.

23 March

Govt accused of distorting the law on superannuation

The Federal Government has been accused of extraordinary and undemocratic legislative over-reach by trying to gain control of how superannuation funds invest on behalf of their members.

2020-11-24 22:30:00

Knowledge Centre

Beyond the digital frontier

Secure, real-time data, insights and transactions accessible from anywhere are closer than you think – explore a vision of 2030 and how global custodians will act as digital conduits for their clients

Northern Trust

23 March

Institutional investment

Rio implements measures to rebuild trust with Traditional Owners

Engagement by superannuation funds and institutional investors has led to the mining giant to introduce disclosure measures to rebuild trust with Traditional Owners, following the destruction at Juukan Gorge.

23 March

Institutional investment

Largest Aussie companies failing on climate

Of the 12 companies pledged in the Climate Action 100+ agreement, none have aligned their capital expenditure with the Paris Agreement – a wake-up call for the engagement strategies of institutional investors.

19 March

Industry funds mount major campaign against Govt on SG

Industry Super Australia has announced a major advertising campaign in defence of the superannuation guarantee and expected moves by the Government to defer the next increase to 10%.

19 March

People & products

APRA appoints new board member to oversee super

Margaret Cole will oversee APRA’s superannuation activities, while deputy chair, Helen Rowell, will now be responsible for general, life and private health insurance.

Challenger Limited posts strong first half on back of selling annuities via super funds and platforms.

18 March

Median growth super funds up 0.9% in February

Growth superannuation funds are now returning over 5% above pre-COVID levels, according to Chant West.

With legislation changing the ‘lost super’ threshold casual and seasonal workers are in particular at risk of their funds being transferred to the ATO, according to AIST.

18 March

$13.8 billion in lost or unclaimed super

The top states with the most lost or unclaimed superannuation are NSW at $3 billion, and Victoria and Queensland both around $2 billion.

18 March

Median balanced super fund up 0.7% in February

The rollout of the COVID-19 vaccine in Australia has allowed superannuation funds to continue to enjoy the continued market recovery, according to SuperRatings.

18 March

Institutional investment

Cbus awards Impax with $240m climate mandate

The mandate with Impax Asset Management will focus on climate mitigation and adaption to help Cbus reach its goal of net zero emissions in its portfolios by 2050.

The Government needs to urgently review their proposed super policies as they are an issue for both higher net worth Aussies and middle Australians, Chartered Accountants believe.

18 March

WTW to review NZ super fund authority

Willis Towers Watson has been selected to conduct the statutory review of the Government’s Superannuation Fund Authority in New Zealand.

ANZ has announced it will sell its stake in the Australian joint venture, ANZ ETFs with ETF Securities Group taking full ownership. According to ANZ’s managing director, institutional, Shayne Collins this decision was based on ANZ’s desire to “simplify th

18 March

People & products

Link Group launches quoted managed funds

Link Group and Switzer Asset Management have re-launched the Switzer High Yield Fund as a quoted managed active exchange traded fund.

18 March

RIR 'rigged' to cut superannuation

The assumptions used by the government’s Retirement Income Review were objectively wrong and vastly inflates retirement outcomes to work towards a pre-determined outcome to cut super, according to Industry Super Australia.

17 March

People & products

Raiz Invest targets SMSFs

Self-managed superannuation funds are now able to invest in investment products on the firm’s platform with no switching fees.

16 March

Why is the super performance test excluding fees?

HESTA is puzzled as to why the government’s proposed superannuation performance test is based on metrics before administration fees are deducted.

Super savings house300

16 March

Home buyer inequity to grow if super used for deposit

Lower income purchases would be either less able or unable to take advantage of superannuation tax benefits, according to a report.

Custodian cautions trustees not to ignore the investment implications flowing from climate change.

16 March

Institutional investment

NGS Super to be carbon neutral by 2030

The 2050 target is misaligned with the timeframes the scientific community has given in relation to human-induced climate change, the industry superannuation fund believes.

Super roundtable

16 March

Liberal and National MPs look to halt SG rise

Governments need to think carefully about embracing ideas that would be popular for the polls but would make lives worse, according to AustralianSuper chair, Don Russell.

The FSC’s definition of super orientates towards the outcome the system aims to achieve, rather than how it is achieved.

15 March

QSuper and SunSuper merger goes ahead

Sunsuper’s Bernard Reilly will be the chief executive of the new mega-superannuation fund resulting from the merger of QSuper and Sunsuper.

11 March

Regulators need to get their act together on data and information

The financial services regulators need to cooperate to ensure that increased costs are not imposed on superannuation funds because of multiple requests for the same data.

APRA has questioned whether lifting premiums represented an adequate answer to the problems confronting the group life market.

11 March

APRA questions Hostplus and Maritime Super partnership

The regulator is questioning whether the pooling partnership where Hostplus would make all investment decisions was in members’ best interests.

ASIC has formally canvassed a ‘regulatory sandbox’ approach allowing fintech companies to test products without an AFSL.

11 March

Super performance test ‘too blunt’

The government’s proposed superannuation performance test would be detrimental to the super system and is not in the best interests of members, according to Chant West.

Most very high super fund balances have been the result of previous rules allowing very large contributions and transfers of assets to be made into superannuation, according to the Association of Superannuation Funds of Australia (ASFA). An ASFA report f

11 March

CareSuper and AMP dominate balanced charts

While AustralianSuper has been the top balanced superannuation fund performer over the last five years, CareSuper and AMP both had two funds that were also top performers, according to data.

Volatile markets and lower investment activity has decreased AMP’s superannuation cash inflows for the first quarter of the year.

11 March

YFYS will push super funds to inferior returns: Thinking Ahead Institute

The Your Future Your Super reforms shift a reference portfolio from “being usefully operational to being detrimentally behavioural”, the Thinking Ahead Institute believes.

MySuper fees problematic

9 March

Insurance in super issues need addressing: APRA

If the current deterioration in group life insurance claims experience continues, superannuation members will be further affected by substantial increases in insurance premiums and/or reductions in the value and quality of life insurance.

9 March

How much BT is charging in super fees

BT Funds Management has revealed to a Parliamentary Committee what it is extracting in administration and investment management fees from BT Super accounts.

Broken work patterns, the gender pay gap, and longevity risk all contribute to the gender gap in retirement income, according to ASFA.

9 March

Increased super contributions could help close gender gap

Superannuation contributions for females could be increased by paying additional super guarantee contributions to women and by paying the SG on paid parental leave, according to Rice Warner.

ASIC has formally canvassed a ‘regulatory sandbox’ approach allowing fintech companies to test products without an AFSL.

9 March

Two-stage process needed for super performance test

Along with a benchmark test, the superannuation performance test should also have an independent assessment by a panel of industry experiences, the chairs of major super funds believe.

LGIAsuper is now available to new people outside Queensland local government employment.

9 March

Telstra Super opens to friends of members

The corporate superannuation fund is now open to friends of members as demand has increased in recent years.

Union appointments

9 March

Institutional investment

Equity Trustees appointed as super trustee of ASF

Equity Trustees Superannuation will oversee The Aracon Superannuation Fund’s $400 million master trust.

9 March

People & products

LGIAsuper CEO to lead merged fund with Energy Super

LGIAsuper chief executive, Kate Farrar, will lead both funds to help build a sustainable boutique super fund that focuses on member outcomes.

New research suggests superannuation funds should deploy intra-fund advice platforms alongside administration.

9 March

EISS Super strengthens ESG tools

The super fund is now using State Street’s environmental, social and governance tools to assess the tonnes of carbon emissions produced by its investee companies.

Local Government Super makes board appointments

9 March

People & products

LGS appoints director

Former Newcastle Deputy Lord Mayor, Declan Clausen, has joined the board, while Karen McKeown will replace Bruce Miller as deputy chair.

Appointment (2)300

9 March

People & products

Qualitas makes board appointment

The real estate financier and investment manager has appointed Brian Delaney to its advisory board.

4 March

Civil proceedings against Statewide Super on false or misleading charges

The corporate regulator has commenced proceedings in the Federal Court against Statewide Superannuation for its representations on insurance cover.

The Government’s proposal to reduce the penalty for late SG payments has been welcomed by accountants who say will help small businesses.

4 March

Increasing SG would stem growing inequality

The legislated superannuation guarantee rises would increase retirement benefits for the lowly paid and would improve the position of the median income/median wealth sector of the economy, according to Rice Warner.

AIA is now the life insurance market leader thanks to its acquisition of CommInsure as it now has a combined $3.9 million, or 25 per cent, in in-force risk market share, according to DEXX&R. DEXX&R’s latest life risk sales report over the year to June 201

4 March

Members should not be stapled to funds with inappropriate insurance

Many superannuation members cannot differentiate valuable industry-appropriate insurance from junk insurance and stapling members to inappropriate insurance would be detrimental to those working in hazardous occupations, according to Cbus.

The latest APRA data has confirmed that disability products are continue to challenge Australia’s insurers.

4 March

APRA data confirms difficult 2020 for life insurance

Life insurers are continuing to struggle, according to the latest data released by the Australian Prudential Regulation Authority covering the 2020 calendar year.

Long-term underperforming default funds should lose their default status, according to the Australian Institute of Superannuation Trustees (AIST). AIST chief executive Eva Scheerlinck has told the Productivity Commission review of alternative default mode

4 March

YFYS does not address retail super funds’ underperformance

The superannuation fund performance test needs to test every super product, not just MySuper products, to avoid underperforming funds escape scrutiny, according to a super body.

The Association of Superannuation Funds of Australia (ASFA) has again called for more transparency around the way in which the financial services regulators spend their funding and for self-managed superannuation funds (SMSFs) to pull their regulatory wei

4 March

Financial advice

Cost of retirement up in December

The increase in health insurance premiums has driven up the overall cost of retirement in December, according to data from the Association of Superannuation Funds of Australia.

4 March

People & products

AMP launches free intra-fund advice service

The offering is a phone-based conversation to cover super contributions, insurance, and investments for AMP’s Super Directions Fund members.

NAB Asset Servicing has ended the long-running industry speculation by confirming Citi as its new global custodian.

4 March

People & products

CFS appoints head of insurance

Colonial First State has appointed Adrian Fortescue to the role, which will support superannuation members who held insurance in their super accounts.

Magnifying Glass

2 March

ASIC moves against REST on false and misleading charges

Big industry superannuation fund, REST is being pursued by the Australian Securities and Investments Commission in the Federal Court on charges it made false and misleading representations to members about transferring their funds out of REST.

2 March

Aware Super and VISSF in merger talks

Aware Super is looking to expand its footprint in the education sector, entering early stage merger talks with the Victorian Independent Schools Superannuation Fund.

Growing money300

2 March

Confirmation that early release did slow down

The Government has made much of its early release superannuation scheme, but the hard data confirms that, contrary to expectations, fewer Australians chose to use it in the run-up to Christmas.

2 March

Stapling should commence later than proposed

The stapling of superannuation funds should commence at the earliest in July 2023 as the current proposed timeline does not allow for all stakeholders in the payroll chain to be brought into the process, according to Aware Super.

Market Insights

Themes driving the need for a more sustainable approach to investing

Themes driving the need for a more sustainable approach to investing

29 January 2021

Beyond the digital frontier

Beyond the digital frontier

25 November 2020

Finding sustainable companies that thrive

Finding sustainable companies that thrive

20 November 2020

Peter Bostock

Pot-kettle? Wilson has conflicts of interest questions to answer. Industry funds overwhelmingly...

Are industry funds bullying and intimidating the Morrison Government? 4 days 21 hours ago

Devil's advocate

I've been exposing these fees to clients for years. A pity the Hayne Royal Commission did not...

Not easy for industry fund members to find total fees 1 week 6 days ago

john

Ignore whatever AMP have to say as they have been fraudulent for many decades ripping off clients.

AMP warns of possibility of six dominant super funds 2 weeks 2 days ago

Dave Peckitt

Hi do you have any info on financial planners in perth? I'm looking to consolidate my super...

Six superannuation consultancies prove stand outs 1 year 9 months ago

Anonymous

This is the most ill informed comment I have ever seen. Why on earth would you think Superannuation...

We aren’t anyone’s secretariat says AustralianSuper 8 months 3 weeks ago

Axl

That's 'toe the party line'.

We aren’t anyone’s secretariat says AustralianSuper 9 months 1 week ago