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 December

Pension plans prize ‘portfolio resilience’

A survey of global pension markets shows portfolio resilience is prized over anything else as financial markets are expected to have a W-shaped or “accordion”-shaped recovery.

Persistent market volatility has seen many self-managed superannuation fund (SMSF) trustees make significant changes to their portfolio, with more than half becoming defensive. AMP Capital’s ‘Black Sky Report 2017’ report revealed that 55 per cent of resp

1 December

Australians fare worst for portfolio downturn

Australian investors have had their portfolios hit worse than other Asia-Pacific regions with 60% saying the pandemic had negatively impacted their finances.

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

1 December

People & products

HESTA invests in Australian Unity’s listed impact investment

The superannuation fund has committed $20 million to Australian Unity’s inaugural issuance of its Mutual Capital Instruments.

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

1 December

Hannover Life Re to exit direct group market

In yet another sign of the challenging times confronting the life insurance industry in Australia, Hannover Life Re has announced it is exiting the direct group market to focus on reinsurance.

30 November

Super industry at odds on SG increase

Challenger’s chair, Jeremy Cooper, is “ambivalent” about the superannuation guarantee increase while Cbus’ Robbie Campo says the increase will benefit those that are seeing inadequate levels of retirement income.

Growing money300

27 November

Retail and SMSFs short-changed again from capital raisings

Large Australian Securities Exchange listed companies should structure their capital raising offers to maximise access for all investors to a proportionate offer and set aside certain allocations for retail and self-managed superannuation fund investors, a panel believes.

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

KPMG has outlined a range of areas where the Budget superannuation changes will need clarification.

26 November

Removing uncertainty will ease hoarding of super balances

Retirees will be more willing to spend their superannuation if they are provided with greater certainty around Government policy and the adequacy of their retirement balances.

Cyber security300

26 November

APRA flags imposition of cybersecurity external audits

Superannuation funds appear likely to be included in a new Australian Prudential Regulation Authority regime requiring them to undertake independent cyber security reviews.

26 November

Funds need to position for climate change or lose returns

While setting goals is important, superannuation funds actually need specific actions on how they are going to tackle climate change, according to Aware Super.

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

26 November

IDII loses $31.8m during Sept quarter

The life insurance industry has reported a net loss after tax of $1.6 billion over the year to September, 2020, with individual disability income insurance experiencing a substantial loss, according to data.

26 November

SMSFs attractive not only due to costs

Control, flexible investment choices, dissatisfaction with their existing fund, and tax and estate planning are the key reasons people chose to set up their own self-managed superannuation fund, according to a survey.

26 November

Institutional investment

US election conclusion lifts investor confidence in November

Investor confidence increased 10.6 points to 90.7 thanks to an improving outlook on North America following the conclusion of the US election process, according to the State Street Investor Confidence Index.

Vision Super will achieve a reduction of 75 per cent of the carbon foot print benchmark by replacing companies with low carbon investments.

26 November

Institutional investment

Aware Super constrained benchmark reduces carbon footprint by 40%

The new listed equities benchmarks excludes the highest carbon emitters locally and globally but exclusion does not necessarily mean that it is permanent.

Transition to retirement challenges can be helped by super funds collaborating with asset managers, according to AB.

26 November

Employers can support financial wellness

Employers are uniquely positioned to help their employees find financial wellness through clearly defined benefits, according to MetLife.

AMP has flagged sharper communications around its roll-out of lifecycle super products.

25 November

People & products

Link to deliver Hostplus member communications

The partnership will see a multi-channel touchpoint for Hostplus member and employer communications sand correspondence.

24 November

RIR SG conclusion based on growing CPI not wages

The current economic situation potentially changes the optimal timing and speed of a superannuation guarantee increase but this should not be confused with changing the optimal long-term SG level, according to Rice Warner.

24 November

CGT needs to be considered if delaying SMSF set up

If a superannuation member believes their account balance is still too small to switch to a self-managed superannuation fund, they need to consider whether to pay a slightly higher admin fee now or a higher capital gains tax event later, according to Rice Warner.

24 November

Australia’s super assets in decline

A combination of the COVID-19-induced market volatility plus early release superannuation has seen Australia’s total superannuation assets go backwards.

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

24 November

People & products

ASFA adds additional directors to its board

Sunsuper chair, Andrew Fraser and IOOF chief operating officer, Frank Lombardo have been added to the board of the Association of Superannuation Funds of Australia.

23 November

ASIC takes court action to enforce enforceable undertaking

In an unusual move, the Australian Securities and Investments Commission is taking civil action in the Federal Court to force a Gold Coast self-managed superannuation fund accountant to abide by an enforceable undertaking.

Appointment (2)300

23 November

People & products

Rice Warner appoints senior consultant

Ex-First State Super deputy chief executive, Graeme Arnott, will focus on client solutions around custody and unit pricing, member administration, and advice solutions.

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.

23 November

Retirement costs up in September quarter

The cost of retirement for couples went up 0.3% to $62,083 per year and up 0.5% to $43,901 for singles during the September quarter, according to data.

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

23 November

Scale the key to SMSF costs and efficiency

Self-managed superannuation funds have become more competitive with Australian Prudential Regulation Authority regulated funds over the past seven years but having a solid starting balance still remains the key.

Employers, including small businesses, should be made to report more detailed superannuation guarantee (SG) information to the Australian Taxation Office (ATO) more frequently, according to the Australian Institute of Superannuation Trustees (AIST). The i

20 November

Govt’s RIR welcomed but opposing views on key issues

The Government’s Retirement Income Review has been welcomed but the industry has differing views on the superannuation guarantee increase and accessing home equity to fund retirement.

20 November

People & products

Cbus appoints chief information technology officer

Mirella Robinson has been appointed to the role and would commence at the superannuation fund in January 2021.

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

20 November

ASIC insurance inside super report reveals 'confused and overwhelmed' members

Up to a third of superannuation fund members find themselves ‘confused and overwhelmed’ with respect to insurance inside superannuation and could use the help of a financial adviser if they knew where to find it.

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.

19 November

Funds that increased fees point to PYS package

There has been a trove of superannuation funds that reduced their fees this year but the ones that increased fees have pointed to the Government’s Protecting Your Super package as the reason.

Rebates to superannuation funds are now being canvassed in the group insurance space.

19 November

Underinsurance gap increasing

The Protecting your Super and Putting Members’ Interest First legislation has increased the underinsurance gap in Australia as group insurance inside super has dropped 27% for death and 29% for total and permanent disability cover, according to Rice Warner.

The current default super regime has hampered women in engaging in their super, according to Financial Services Council chief executive, Sally Loane.

19 November

Structural issues create super inequality not SG

Factors such as broken working patterns, part-time work, and the tendency to be lower paid that contribute to inequality in women’s superannuation rather that the superannuation guarantee, according to the Association of Superannuation Funds of Australia.

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.

19 November

$1 billion of lost super to be reunited

Around 700,000 Australians will receive a payment from the latest round of consolidating lost and small inactive super account balances before the end of the year, according to the Association of Superannuation Funds of Australia.

AMP Capital has praised the move to make China A-share market more accessible for global investors, saying it will benefit Australian investors.

19 November

Institutional investment

State Super awards China mandate to Ninety One

Ninety One, formerly Investec Asset Management, was selected by the super fund for its high standards of ESG integration and corporate engagement.

19 November

Institutional investment

Estimated emissions data not reliable

Investors should provide incentives for companies to directly report their emissions as third-party estimated emissions data is 2.4 times less effective in identifying worst emitters, according to Research Affiliates.

19 November

Institutional investment

Global small caps offer diversification for Aussie investors

Australian investors should consider opportunities in the global small cap space for a better diversification given that global small caps performed better than the same sector in Australia.

Helen Davis appointed SCT chair

19 November

People & products

SMSF Association appoints vice chair

The SMSF Association has announced the appointment of Michael Houlihan as its new vice chair, effective today.

APRA’s head of credit risk analytics, Guy Eastwood, has been recognised for his contribution to financial sector policy implementation.

19 November

People & products

UniSuper CEO wins FEAL Fund Executive of the Year award

Kevin O’Sullivan was recognised for his passion for digital innovation, corporate strategy, and leadership during the pandemic.

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

19 November

Cbus reappoints TAL as insurer

The importance of maintaining default insurance was even more important given the Government’s proposed “stapling” superannuation measure, according to Cbus.

18 November

Median growth super funds up 0.5%

The positive return in October was largely due to the 1.9% return in Australians shares and the depreciation of the Australian dollar limiting the loss experience by international shares, according to Chant West.

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.

17 November

Financial advice

QSuper contemplating deduction of external advice fees

QSuper has confirmed it is considering allowing the deduction of advice fees from member accounts by external advisers.

Growing money300

17 November

Hume flags continuing hard line on super defaults

The Federal Government has signalled it will not be relenting on making superannuation funds perform and be more transparent for members.

17 November

Financial advice

ASIC affordable advice paper opportunity to address limited licence regime

The corporate watchdog’s consultation paper is an important step forward but the limited licence regime needs to be redesigned to provide scaled advice for self-managed superannuation fund members, the SMSF Association believes.

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

17 November

AustralianSuper climate change policy fails to rule out thermal coal investment

While the new policy targets net zero carbon emissions by 2050 there is nothing to stop the fund from reducing climate impacts of its portfolio in the short-term, according to Market Forces.

Superannuation funds have expressed concern that their trustee directors are being held to higher standards and obligations than those of other entities because of the terms of the Superannuation Industry (Supervisi

17 November

People & products

Intrust launches pension transfer bonus

The tax rebate would be available for members when they moved their super savings to a super stream account-based pension.

A Super Review survey has confirmed the ACCC is on the money in identifying that super funds regard technology platforms as being a key element in selecting admin.

17 November

AustralianSuper among largest asset owners globally

Super fund AustralianSuper has risen to be recognised as one of the top 50 largest asset owners in the world, with US$129,095 in assets.

16 November

LGIAsuper reduces admin fees

The superannuation fund will reduce member fees from $1.50 per week to $1 a week as a direct result of its administration partnership with Tech Mahindra.

13 November

Median balanced fund up 0.5% in October

While recovery in superannuation funds has been faster and stronger than expected, members still have not been able to fully recover losses since the pandemic brought turmoil to markets in March, according to Super Ratings.

13 November

Financial advice

End to hawking welcomed

It is now officially illegal to hawk a member of a MySuper product into a choice product offered by the same fund and this will ultimately boost retirement savings of Australians, according to Super Consumers Australia.

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

12 November

Only 10 balanced funds make a return

The difficulties brought by the COVID-19 pandemic has been reflected in the fact that only 10 balanced super funds have managed to make a return so far this year, with the top performer returning 6.4%.

12 November

ASIC investigates super fund trustee and executive COVID-19 investment switching

The Australian Securities and Investments Commission is investigating a range of investment switches undertaken by trustees and executives of major superannuation funds.

12 November

Excess contribution opportunity not understood

Advisers need to understand when they should advise clients to either take money out of super or to leave it in when it comes to excess concessional and non-concessional contributions, according to Heffron.

Investment committees and boards tend to take environmental, social, and governance (ESG) issues as a bundle when E, S, and G are not created equally, according to Northern Trust Asset Management. The firm’s senior vice president, head of asset management

12 November

Institutional investment

Tax-managed responsible investing reaps investment returns

Superannuation funds could be rewarded in investment performance by tax-managing its responsible investing while holding companies to account, according to Parametric.

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