Super Review

Nine in 10 super funds estimated to pass performance test

SuperRatings has analysed super fund performance in line with the Government’s performance test criteria and found that 90% of trustee directed options are estimated to pass the test compared to 80% from last year.

Super industry needs to adapt to cope with mega-funds: KPMG

There are expected to be eight funds with more than $125 billion in funds under management by 2025, according to KPMG, and funds’ frameworks will need to adapt to cope.

Engagement activity less valuable for funds: EY

It would be more effective for superannuation funds to focus on building an attractive default fund than spending money to try to engage members in the accumulation stage, according to EY Australia.

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

Is Hostplus worthy of SuperRatings top spot for FY22?

Stockspot's founder has thrown doubt on Hostplus’ 2022 financial year returns, highlighting a need for greater transparency of holdings within the industry.

Look out for ‘gamification’ of super

The superannuation industry could see increased ‘gamification’ as a way to increase member engagement, according to GBST.

National Australia Bank has launched a product which it claims will eliminate some of the pain points likely to be experienced by SMSF trustees as they seek to comply with new LRBA rules.

6 July

People & products

ETF Securities expands fixed income options

ETF Securities has launched a US Treasury Bond fund and a USD high-yield corporate bond fund, aimed retirees and self-managed superannuation fund members seeking low risk assets.

6 July

UniSuper and Australian Catholic Superannuation move forward on SFT deed

UniSuper and Australian Catholic Superannuation have reached the next milestone in the merger activity between the two funds, having signed the Successor Fund Transfer deed.

5 July

ASIC updates retirement calculators guidance

The corporate regulator has issued guidance about how superannuation funds can use retirement estimates and calculators, as the Retirement Income Covenant comes into force.

2022-07-31 14:00:00

Knowledge Centre

Driving Growth in Asset Management: The Next Chapter

The next chapter in driving growth for asset management will mean anticipating change and evolving for the future. Learn how the most successful asset managers will focus their resources.

Northern Trust

Helen Davis appointed SCT chair

5 July

Hostplus appoints Frawley as chair

Hostplus has appointed Damien Frawley as independent chair, replacing David Elmslie who has reached the end of his term after 15 years.

5 July

Rest reduces admin fees

Rest has reduced its asset-based administration fee and expanded its responsible investment mandate to include a carbon reduction tilt that will cover its Australian equity portfolio.

Local Government Super makes board appointments

5 July

People & products

UniSuper makes investment leadership appointments

UniSuper has made three senior appointments in its investment leadership team, with the fund now managing 70% of its assets in-house.

2022-07-31 14:00:00

Knowledge Centre

Holding chemical companies to account

Reducing the damaged caused by hazardous chemicals takes holding chemical companies to account through public rankings. See what it takes.

Aviva

AMP’s existing self-managed super fund brands will now operate as sub-brands of SuperConcepts, with Natasha Fenech as its CEO.

5 July

People & products

CareSuper grows executive leadership team

CareSuper has announced the appointment of Jean-Luc Ambrosi to the newly-created role of chief experience officer while Christine Nguyen has been promoted to chief risk officer.

30 June

Aware Super calls for clear list of advisable topics

In a submission to the Quality of Advice Review, Aware Super has recommended the provision of a clear, expanded list of topics that a fund can advise on, arguing intra-fund is the “only viable way” to deliver affordable advice.

30 June

Financial advice

Regulatory uncertainty slows Rest digital advice enhancements

Financial advice sought by Rest members has doubled since 2019 but the fund is hesitant to enhance its offering as they await regulatory guidance.

30 June

Using SMSFs to control under-18 superannuation

With superannuation now paid to under-18s working more than 30 hours a week, paying it into a family self-managed super fund could help control costs on a small balance.

Bank superannuation funds for staff have outperformed the super funds they sell to the public, according to Industry Super Australia (ISA). ISA said over a ten-year period Commonwealth Bank’s not-for-profit corporate staff fund outperformed by 2.8 per cen

30 June

SMSFs stand out as asset to beat inflation

Asset depreciation means Australians could need to delay retirement by an average of 8.76 years if there is no improvement on the performance of superannuation assets.

30 June

EOFY brings two shake-ups to super industry

The superannuation industry will see two major changes from tomorrow (1 July) with the introduction of the Retirement Income Covenant and the increase in the super guarantee from 10% to 10.5%.

Advisers and super funds must strive to change members’ thinking about their super as a balance in an account to an income stream that would provide for their retirement.

28 June

Staff disconnect as RIC draws closer

A disconnect exists between senior executives and superannuation fund product managers when it comes to their perception of their fund’s readiness to meet the deadline of the Retirement Income Covenant legislation.

Strong support exists for independent directors on super boards

28 June

People & products

State Super appoints board member

State Super has appointed Cathy Yuncken to its board whose previous directorships included chair of BT Private Nominees and executive director of the Advisory Boards of BankSA and Bank of Melbourne.

28 June

More advisers helping establish SMSFs

Self-managed superannuation fund establishments have reached a three-year high, according to Investment Trends, with the percentage of advisers assisting in establishment rising to 65%.

27 June

‘Consolidation indigestion’ hinders super fund mergers

The prudential regulator is pushing for superannuation funds to merge to deliver member benefits but some are facing ‘consolidation indigestion’ in the process.

A letter from both APRA and the ATO has spelled out the degree to which super funds will have increased interactions with the ATO via SuperStream mechanisms.

24 June

ASIC warns how to communicate performance test failures

ASIC has conducted a review into how superannuation funds communicated their performance test failures to members, revealing some may have risked misleading members.

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

24 June

Advisers’ SMSF client assets double in three years

Net assets per adviser in self-managed superannuation funds have more than doubled since 2019 as the adviser exodus means remaining firms are taking on more clients.

24 June

Funds management

IFM launches climate transition fund

IFM Investors has launched a climate transition fund for Australian-listed equities to help superannuation funds meet their Your Future, Your Super requirements.

23 June

The challenge of predicting life expectancy

The difficulty of designing products for decumulation is superannuation funds are unable to accurately predict how long members will need the funds, according to a panel, meaning members fear running out of money.

The retail funds industry has traditionally focused on clients aged 45 and over but this will need to change as baby boomers draw down on their wealth, which could potentially pose a threat to industry funds, according to Tria Investment Partners. The fir

23 June

Younger generation leading spike in SMSFs

A joint Vanguard and Investment Trends study has found the new cohort of self-managed superannuation fund trustees are younger, confident and more engaged with their superannuation.

23 June

People & products

Future Fund loses chief investment officer

The Future Fund Management Agency has seen the departure of its chief investment officer, Sue Brake, who has cited family reasons as the reason for leaving the organisation.

Super funds should avoid under-diversifying and prioritise country selection when it comes to emerging markets, according to a fund manager.

23 June

Funds management

Super funds look to increase EM allocations

The market is approaching a crossover point where superannuation funds may look to capitalise on further investments in emerging markets, according to Loomis, Sayles &. Company.

21 June

One-fifth of super funds to fail Choice performance test

Analysis from SuperRatings predicts that approximately 20% of Choice superannuation options will fail this year’s performance test due in August.

21 June

Super funds retreat further in May

While it is now almost certain that growth funds will finish the financial year in the red, members should resist hitting the panic button, according to Chant West.

21 June

Squirrel Super fined for false and misleading marketing

The Federal Court has ordered Squirrel Superannuation Services Pty Ltd to pay a $55,000 penalty for false and misleading marketing regarding investing in residential property via self-managed superannuation funds.

21 June

Active Super launches retail booster program

Active Super has launched a Super Booster reward program in association with retailers.

21 June

Funds management

Do we need to shake up the construction of portfolios?

Major shifts in the constructions of portfolios should not occur until a more permanent outlook on the global economy is gleaned.

21 June

Banned SMSF adviser convicted for breaching ASIC order

Former Queensland financial adviser, Lawrence Toledo, has been convicted and fined $1,500 after pleading guilty to three charges of breaching an Australian Securities and Investment Commission banning order.

The boards of Kinetic Super and Sunsuper have signed heads of agreement, giving in principle support for a merger. The final decision to merge had not been made as both funds needed to complete a comprehensive due diligence process. The funds would look

16 June

Merging ‘inevitable’ for smaller super funds

In an interview with Super Review, Mercy Super, which is set to merge with HESTA, believes the “writing is on the wall” for smaller superannuation funds and they will have to decide between merging now or later.

16 June

APRA warns on impact of repeated performance test failures

APRA has warned funds which fail the Your Future, Your Super performance test for two consecutive years will be unable to accept any new beneficiaries for members until they pass a future test.

Quadrant and Tasplan have implemented a new contact centre, and administration function in Hobart following their merger.

16 June

The staffing problem with internalisation

How to hire and retain staff is the big question for superannuation funds to solve when it comes to internalisation of investment management, according to a panel.

16 June

SMSF Association pushes for specialist adviser training

The SMSF Association is urging the Quality of Advice Review to “set in stone” the need for specialist training for those advising the self-managed superannuation fund sector.

With many claims involving significant sums of money, trustee decisions about who qualifies as a beneficiary and who doesn’t can have life changing impacts on individuals or family members at a time when they may be at their most vulnerable. And with the

16 June

Funds management

Australian private debt liquidity is in its early stage

It will be 10-15 years before the level of liquidity in the Australian private debt market matches that offshore in the US and Europe, according to Schroders Capital’s head of private debt.

Actuarial firm Rice Warner has used its pre-Budget submission to urge a review of the Transition to Retirement pension arrangements arguing they now unduly favour high income earners.

16 June

Financial advice

Enabling super funds to provide cost-effective advice

Industry Super Australia has revealed its 18 recommendations for the financial services industry that it believes would enable superannuation funds to provide cost-effective advice and guidance to members at scale.

Many members of bank-owned or other retail super funds who make a choice on where to invest their super are paying more fees and getting fewer returns, according to a report.

15 June

Funds management

Why the rush to internalise?

There is no need to internalise fund management, according to Hostplus, as fees are already low and external managers are willing to negotiate with superannuation funds on price.

15 June

Funds management

YFYS and net zero targets ‘not working together’

The Your Future, Your Super performance test is not aligned with the Government's agenda to achieve net-zero carbon emissions by 2050, according to Mercer’s Jillian Reid.

The Association of Superannuation Funds of Australia and the Actuaries Institute have urged comprehensive consumer testing of super choice product dashboards.

15 June

YFYS forcing funds to deviate away from member objectives

The Your Future, Your Super legislation is having an unintended outcome of forcing superannuation funds to move away from meeting promises to members in order to meet the performance test.

15 June

Expect two more years of M&A in super: APRA

The prudential regulator has confirmed it is expecting to see the rapid pace of consolidation among superannuation funds to continue for the next two years.

MLC has made give new hires in its group insurance team following the partnership between NAB and Nippon Life.

15 June

People & products

Supply/demand problem for ESG specialists

There is a keen need for more specialists in environmental, social and governance in superannuation, according to a panel, if the industry is going to be able to work towards achieving net zero.

14 June

ASIC issues guidance to identify ‘greenwashing’ funds

ASIC has issued information to crack down on superannuation funds which fall foul of ‘greenwashing’ which it says will remain a priority for its regulatory oversight.

New research suggests SMSF trustees are diversifying their asset allocations but many still cling to cash.

14 June

The ins and outs of contribution reserving

Self-managed superannuation fund clients wishing to make a large concessional contribution over and above the concessional contribution cap should aim to split it over this financial year and the next, according to BT.

14 June

Potential for Australia to be global leader on social governance

There is potential for Australia to be a world leader in setting the standards on social governance, according to a panel.

14 June

HESTA and Mercy Super to merge

HESTA and Mercy Super are set to merge their two funds, having signed a letter of intent to merge via successor fund transfer.

14 June

Super funds fall further in May

The median balanced superannuation option fell by -0.9% in May, according to SuperRatings, as funds face into global market headwinds.

A letter from both APRA and the ATO has spelled out the degree to which super funds will have increased interactions with the ATO via SuperStream mechanisms.

14 June

Financial advice

SoAs ineffective at engaging consumers: ASFA

The cost of providing a Statement of Advice to superannuation fund members are thousands of dollars more than for a Record of Advice, according to ASFA, and consumers find them difficult to understand.

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

9 June

What qualifies as limited advice for super funds?

Clarity is needed for superannuation funds on what they can provide to members to qualify as limited advice as they seek to increase their digital advice delivery, according to ASFA.

9 June

Super merger complexity demonstrates benefit of advice

The proliferation of superannuation fund mergers and possible insurance changes for members should be a talking point for advisers to demonstrate their value when it comes to insurance advice.

The retail funds industry has traditionally focused on clients aged 45 and over but this will need to change as baby boomers draw down on their wealth, which could potentially pose a threat to industry funds, according to Tria Investment Partners. The fir

9 June

Engaging young people with insurance

The idea that young people don’t need insurance is a misguided idea, according to Rest chief executive, Vicki Doyle, as over a quarter of the fund’s 18-24 year old members have dependents.

9 June

Active Super and Vision Super consider merger

Active Super and Vision Super have signed a Memorandum of Understanding to explore a potential merger between the two funds.

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Steve

That intra-fund advice system is going gang-busters lol. Time we got rid of the annual fee...

Service quality complaints on the rise 3 weeks 2 days ago

GP

Personally I'm not in favor of this legislation but not for the reasons of the alarmist media...

Super for housing will torpedo funds’ returns 2 months 4 weeks ago

OknFD

"In comparison with the majority of other wagering sites, 1xBet Betting Company sets itself up...

Budget changes fall short of objectives 4 months 1 week 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 3 years 1 month 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 2 years 1 week ago

Axl

That's 'toe the party line'.

We aren’t anyone’s secretariat says AustralianSuper 2 years 1 month ago