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.

1. Industry Super Australia has warned of the long-run consequences of allowing young or lower-paid workers to opt-out of the super system. 2. The Commissioner of Taxation, Chris Jordan, has revealed that SMSFs are not the sole repository of very large ac

7 January

Early release of super scheme hits $35.9b

There were a further 21,000 superannuation members who applied for the early release of their super in the week before the scheme ended, with 31% representing repeat applications, according to data.

Regulatory change is again front and centre as a concern for super trustees in 2016, according to a new survey.

7 January

Financial advice

Aussies worried they do not have enough for retirement

Advisers need to understand the types of risk specific to retirees and implement strategies to minimise the risk of outliving their savings as two-thirds do not believe they are prepared for retirement, according to Fidelity International.

6 January

Proposed super laws inadequate: AIST

The Government needs to address underperformance in the superannuation system before stapling of super accounts begins, according to the Australian Institute of Superannuation Trustees.

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

Only high net worth white collar super fund members’ balance would be affected by insurance within super, according to a lawyer.

5 January

Proceedings against Squirrel Superannuation Services start for misleading marketing

The corporate regulator alleges the financial technology firm’s brochure on self-managed superannuation funds was misleading.

5 January

Institutional investment

Investor confidence up in December

The State Street Investor Confidence index finished 2020 with an increase of 13.3 points in December, reaching the level of 104.1 from November’s revised reading of 90.8.

5 January

ACTU rejects Govt super reforms

The Australian Council of Trade Unions believes the Government’s superannuation exposure draft legislation is an ‘attack’ on working people and their retirement savings.

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

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.

5 January

Future Super cuts fees

The ethical fund has reduced its fees on all of its investment options on the back of a 200% increase in new members last year.

4 January

SS&C withdraws Link takeover bid

SS&C Technologies has withdrawn its bid for Link Administration Holdings for an undisclosed reason, less than a month after the initial proposal.

BT Financial Group has joined the chorus of calls for a harmonisation of the treatment of insurance both inside and outside of super.

17 December

How premium re-pricing helped group insurers

New data released by specialist research house Dexx&r has confirmed that the premium repricing strategies of the major group insurers have helped them cope with the Government’s insurance inside superannuation changes.

17 December

Financial advice

Advisers’ retirement investing framework unstructured

Education on retirement investing has been overlooked by professional qualifications and advisers may be unaware of other retirement investment approaches they could use, according to Fidelity.

17 December

Financial advice

Merry Christmas from Super Review

Merry Christmas. This is the final Super Review e-newsletter of 2020.

17 December

Growth fund returns boosted by vaccine breakthroughs

The median growth superannuation fund is set to finish the calendar year at 3%, according to Chant West.

17 December

ASIC confirms it is investigating investment switching by super fund execs

With a number of superannuation funds having confirmed investment switching by fund trustees and executives during the early COVID-19 market volatility, the Australian Securities and Investments Commission has confirmed it is examining if any breaches or wrongdoing occurred.

ASFA urges APRA not to seek to impose rigid limits on the size of superannuation fund boards.

17 December

Which super funds pay their directors six figure salaries

Nine superannuation funds, three of which are not for profits, are paying their trustee directors average six figure fees, according to data published by the Australian Prudential Regulation Authority.

While the Insurance in Superannuation Code of Practice draft is a good start, it needs to explain the real impacts of rationalising funds and policies to ensure members are not left worse off, Maurice Blackburn Lawyers believes. The law firm’s principal,

17 December

Christian Super wins Impact Asset Owner title

The fund has been awarded the Impact Asset Owner of the Year in 2020 Australian Impact Investment Awards as it looks to “actively promote human flourishing and creation care”.

16 December

Median balanced super funds returned 4.9% in Nov

The median balanced superannuation funds are on track to finish the year in positive territory as the global recovery is looking ‘sufficiently V-shaped’, according to SuperRatings.

15 December

AustralianSuper defines the cost of PYS

The Government’s Protecting Your Super regime has cost Australia’s largest superannuation fund $3.6 million in implementation costs.

15 December

Cbus and Media Super merger to progress

Cbus and Media Super have announced that their merger will progress to the next stage with a view to completion late next year.

The Australian Securities and Investments Commission (ASIC) has confirmed it has initiated a project which will closely examine life insurance within superannuation. The regulator has flagged that it intends on publishing a report on life insurance within

15 December

Life insurance universal terms and conditions need reviewing

The corporate regulator’s report on life insurance in superannuation found there was value for money in the products but it also highlighted areas that needed addressing, according to a lawyer.

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15 December

People & products

AIST makes key appointments

The Australian Institute of Superannuation Trustees has looked to meet member fund demands with respect to membership engagement and education with two key appointments.

The Federal Treasury has been urged to undertake further consultation around the development of the Government’s comprehensive income products for retirement (CIPRs) regime amid concerns that its proposed settings risk significantly eroding any potential

15 December

‘Time is now’ for Retirement Income Covenant

The delayed covenant should come into force as soon as possible to ensure retirees are properly equipped for retirement, according to Allianz Retire Plus.

15 December

People & products

Bourguignon departs AMP

The chief executive of AMP’s SuperConcepts and managing director of superannuation, retirement and platforms, Lara Bourguignon, has resigned to move into consultancy.

QSuper has internally appointed Michael Pennisi as its new chief executive, replacing Rosemary Vilgan.

15 December

People & products

ME Bank appoints CEO

The bank’s acting chief executive, Adam Crane has been appointed to the role after taking on the acting role in July.

Rice Warner argues the creation of scope for joint super accounts would help create greater clarity around male and female member investment.

15 December

Institutional investment

JANA selected by NZ philanthropic trust

JANA has been selected by New Zealand philanthropic trust, Foundation North, as its new asset consultant.

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15 December

People & products

JANA appoints new head of NFP and retail

JANA has promoted Michael Karagianis to a newly created position of head of not for profit and retail partnerships.

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

14 December

Default super insurance pays up to 79 cents for each premium dollar

Younger superannuation members and those in insurance policies with more restrictive terms and conditions may be receiving relatively low value for money, according to the Australian Securities and Investments Commission.

10 December

ASIC urged to use fresh data in SMSF guidance

Actuarial research house Rice Warner has reinforced its message to the Australian Securities and Investments Commission that the regulator needs to use up to date data and analysis when providing guidance around the use of self-managed superannuation funds.

Ignition Wealth has incorporated tools and calculators into its robo-advice platform after advice form industry funds.

10 December

Financial advice

Intra-fund advice is not special says ASIC

While currently finalising a review based on samples of intra-fund advice, the Australian Securities and Investments Commission has used an article to explain that intra-fund has no special status.

10 December

October boost for super satisfaction

For the first time since the start of the COVID-19 pandemic, super fund customer satisfaction has seen an increase, according to Roy Morgan.

10 December

Independent review needed into financial risk management

The Juukan Gorge scandal has highlighted how little confidence investors can have that financial risk is being appropriately managed, according to HESTA.

10 December

HUB24 adds Insync global equity fund

The Global Quality fund will be available on the platform for both investment and super accounts by the end of the year.

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9 December

People & products

Zurich appoints group insurance head

Darren Wickham, currently TAL group life executive general manager, will join in March 2021.

8 December

Lack of regulations delivers super funds relief on portfolio holdings

Superannuation funds have been delivered another 12 months’ breathing space on reporting portfolio holdings simply because the Government has not made the necessary regulations.

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

8 December

How stapling will impact default super

Superannuation funds will need to get innovative if they are to attract members in the new world of stapling.

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8 December

Early release headed towards $38 billion

When the Government’s early release superannuation scheme comes to an end, 10 funds will have made over 60% of the payments, most of them being industry funds.

Rice Warner argues the creation of scope for joint super accounts would help create greater clarity around male and female member investment.

8 December

Funds management

SS&C launches takeover bid for Link

Link may have been frosty about a private equity bid but is less so about a $5.65 bid from big technology player, SS&C.

The Australian Institute of Superannuation Trustees (AIST) has welcomed the digitisation of superannuation choice forms, which will allow consumers to see a list of their existing superannuation accounts or select their employers’ default fund, but stress

8 December

Superannuation fund shareholders in Westpac need to get serious

Superannuation funds with major shareholdings in Westpac will be putting their members’ investments at risk if they do not support a greater board focus on risk and compliance issues, according to veteran financial services lawyer and board candidate, Noel Davis.

CommInsure has been selected by Prime Super as its new group insurance provider.

8 December

People & products

Super veteran Dwyer appointed to Bennelong board

Michael Dwyer, former chief executive of First State Super, has been appointed to the board of Bennelong Funds Management and its parent company.

8 December

Cbus partners with Brookfield

The building and construction industry fund will partner with the renewable energy asset manager in an effort to boost investment in solar technology and post-COVID transformations.

8 December

Aware Super invests in NYC battery storage hub

The industry fund has invested in SER Capital Partners’ New York City microgrid project which will repurpose underused real estate into battery storage hubs, as part of its commitment to invest $150 million per year in renewable energy.

A Senate Committee has been warned the Government may be significantly over-estimating the level of investments Australians hold outside of super.

8 December

People & products

Former WA Super investment team launch boutique

WA Super’s former investment team of Chris McAlpine, Mark Foo and former chief investment officer Chris West have launched boutique investment consultancy Context Capital.

The Australian superannuation industry should defy current market volatility and emerge as one of the nation’s employment growth areas, according to specialist recruitment business, SUPER Recruiters. The company has pointed to a recent industry survey tha

8 December

Recruitment needs to be refined during COVID-19

Social distancing practices, as well as the need for remote work, has meant the way recruitment is approached in the industry needs to be changed, according to Super Recruiters.

3 December

Trustees could contravene legal obligations with default occupation category

Superannuation trustees might fail legal obligations if they do not ensure premiums charged to members are based on appropriate statistical assumptions, according to the corporate regulator.

3 December

Growth funds struggle to recoup March losses

Only three growth superannuation funds have managed to make a return so far this year with the top-performing fund returning 3.37%, according to data.

After six years Equip CEO, Danielle Press, will be leaving the fund for the Myer Family Company.

3 December

Finding opportunities in a post-COVID-19 world

The COVID-19 pandemic has presented challenges for Australia’s group insurers but also opportunities, according to Metlife Australia’s head of group product, Dean Mulheron.

3 December

UniSuper explains former executive’s $1.1m COVID-19 investment switching

Industry fund, UniSuper has gone to the trouble of explaining to a Parliamentary Committee how a former senior executive of the fund switched investments around the time of the initial COVID-19 volatility.

3 December

APRA confirms super early release did impact super fund liquidity

Some superannuation funds have been confirmed as having faced a liquidity squeeze as a result of the Government’s early release superannuation regime while some members lost money by switching investments at the wrong time.

3 December

Funds management

Equity Trustees appointed as custodian of HomeCo’s REIT

The HomeCo Daily Needs REIT, which seeks to raise up to $300 million in funding, has announced that Equity Trustees has been appointed as custodian of one of its latest real estate investment trusts.

While superannuation funds understand digital advice is important, some are yet to move beyond calculators on their website, according to a report. The Association of Superannuation Funds of Australia (ASFA) and Decimal’s ‘Digital readiness of superannuat

1 December

Financial advice

Advice part of key to UK retirement strategies

Like Australia, the United Kingdom is struggling to find a better retirement incomes regime but advice has been identified as a key ingredient.

1 December

People & products

Fee changes for Mercer Super Trust funds

Some funds will experience a fee reduction as a result of Mercer’s growth and greater operational efficiencies.

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