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.

12 November

Report to provide insights on actual cost of SMSF

A Rice Warner report, to be launched later this month, will look at when self-managed superannuation funds are most cost-effective.

The superannuation industry needs to end its infighting if it is to be taken seriously by Government, according to ASFA chairman, Michael Easson.

10 November

AAT upholds SMSF adviser ban

The corporate regulator’s ban on Perth self-managed super fund adviser Wayne Blazejczyk has been upheld by the Administrative Appeals Tribunal.

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

10 November

Heatmaps have not discouraged innovative investment decisions: Rowell

There has not been a material shift in investment strategies nor has there been a shift to wholesale indices as a result of the superannuation heatmaps, according to the Australian Prudential Regulation Authority.

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

Improve disclosure to reduce costs

10 November

Institutional investment

LGIAsuper reduces property, bonds and global equity exposures

The superannuation fund is focusing on assets where it expects higher risk-adjusted returns and will place emphasis on generating sustainable income from its diversified portfolios.

10 November

SMSF member increase due to pass

After recommendation from the Senate Economics Legislation Committee, legislation to increase the maximum number of SMSF members from four to six is expected to pass through Parliament.

10 November

BlackRock’s Fink praises Aussie super system

Australia’s superannuation system means the country has an advantage over other countries when it comes to helping its citizens prepare for retirement, according to Larry Fink, chief executive of BlackRock.

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

With the spotlight on governance intensifying, Mercer has acquired a new web-based risk management solution.

10 November

Super funds need more digital tools

A new survey has highlighted the demand from superannuation fund members who want better online retirement planning tools and online interaction.

Seventh consecutive year of positive returns Despite the rumblings in Europe, the latest Chant West data points to a seventh consecutive financial year of positive super returns. Despite the uncertainties created by the United Kingdom's vote to ex

10 November

Australians support increasing SG

Most Australians support increasing the superannuation guarantee to 12% and only 30% believe they will have a comfortable lifestyle in retirement, according to a survey.

The lack of robust data is the most influential barrier for institutional investors to further incorporate environmental, social, and governance (ESG) into investment decision making, according to BNP Paribas Securities Services. BNP Paribas Securities Se

5 November

Significant super lessons from McVeigh v Rest

Legal analysis of the settlement reached between Rest and its member and ecologist, Mark McVeigh, has pointed to significant implications for other superannuation funds.

5 November

Funds management

Geared Aussie equity super funds best over 5 years

While super funds focused on geared Aussie equities returned higher than any other equity-focused super fund sector, the top-performing funds have not recovered losses incurred during the sell-off earlier this year.

Policy makers should start demanding answers about why not-for-profit industry superannuation funds continue to outperform bank-owned funds, Industry Super Australia (ISA) believes. ISA pointed to SuperRatings’ data for the decade ending 31 May 2017 which

5 November

Industry funds advertising to be scrutinised

A key Parliamentary Committee has declared its intention to scrutinise the amount of money being spent by industry funds on advertising and whether it is members’ best interests.

The Superannuation Complaints Tribunal received 1,739 complaints of which 91 per cent were resolved, according to its annual report.

5 November

AFCA proposes unresolved SCT complaints transferred to ASIC

The complaints authority has proposed a change to its rules to allow the Australian Financial Complaints Authority to accept and consider complaints that are not resolved by the Superannuation Complaints Tribunal.

SMSF Association chief executive, Andrea Slattery has urged the incoming Government to address the need to make infrastructure investment easier for SMSFs.

5 November

Institutional investment

Infrastructure sector backed by Biden and Trump

Both US presidential candidates have indicated a much-needed investment to replace ageing infrastructure, providing attractive opportunities for private infrastructure investment.

AustralianSuper has urged the Senate Economics Committee to heed the industry’s concerns about the objective of superannuation.

5 November

Institutional investment

Super funds ignoring Aussie small caps

Australian small caps sitting outside of exchange traded funds indices are missing out on billions of dollars of potential investment via superannuation funds.

5 November

Post retirement

Rate cuts ‘kick in the guts’ for retirees

The reduction of the cash rate is a blow to fully and partly self-funded retirees and the Association of Independent Retirees is urging the Government to reduce deeming rates.

Private market providers across Asia-Pacific could potentially fill gaps existing from government sponsored retirement systems and employer-sponsored pension arrangements, according to global consulting firm, Milliman. A survey of insurance companies and

3 November

Asia Pacific ex Japan super funds best at navigating COVID-19

The sector was the only one to have made a return so far this year with the top-performing fund returning 15.25%, according to data.

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

3 November

Financial advice

Industry funds canvass three-way advice fee split

Industry funds are urging more clarity from the regulators on what can be delivered via limited and intrafund advice while canvassing the ability to bill members in three component parts.

Australian superannuation funds have been warned of the risks of tilting equity portfolios to maximise the benefits of franking credits.

3 November

Industry fund smoking gun or simple expression of concern?

Government backbenchers have pointed to evidence that AustralianSuper chief executive, Ian Silk, spoke to a critic of the Victorian Government COVID-19 lockdown as evidence of industry funds influence.

3 November

ATO to work with business who missed or underpaid super

Businesses that missed regular superannuation guarantee payments can lodge a charge statement by 28 November, 2020, to avoid penalties.

Major super funds have lost $5.6 billion thanks to declining fossil fuel stocks, according to Market Forces.

3 November

Institutional investment

Westpac’s fossil fuel exposure at $9b

The bank has the most exposure out of any Australian bank to coal-fired power generation and has the second most exposure to gas-fired power.

2 November

Super member wins lawsuit against Rest on climate change

The superannuation fund’s member, Mark McVeigh, has created a precedent when it comes to funds’ fiduciary duties surrounding climate change risks.

A recent decision by the Superannuation Complaints Tribunal has revealed that the GFC and illiquid superannuation fund investments are still taking their toll.

29 October

Wage boost promises were not kept in 2014 when SG froze

While politicians claim that cutting next year’s SG increase will lead to wage rises, the economic downturn will make wage rises far less likely now, according to Industry Super Australia.

Australian superannuation funds have been warned of the risks of tilting equity portfolios to maximise the benefits of franking credits.

29 October

Super performance test a ‘blunt single-issue measure’

The Government’s proposed superannuation performance test would likely pressure funds to forgo opportunities for long-term outperformance to mitigate the risks of underperformance against a nominated benchmark, Rice Warner believes.

Mercer is arguing the purpose of superannuation cannot be defined without also defining the purpose of the Age Pension.

29 October

Super performance test needs to define ‘underperformance’

The Association of Superannuation Funds of Australia has proposed a two-stage assessment to look at fees and costs, and investment returns.

29 October

Link allows PEP consortium due diligence

In what represents a strategic concession in the face of a private equity led bid for the company, Link Administration has allowed non-exclusive due diligence and flagged its continuing thinking around a demerger of its property settlements business, PEXA.

Global investor confidence dropped 8.3 points in August with poorer than expected earnings taking the wind out of US institutional investors’ sails, according to State Street.

29 October

Institutional investment

Investor confidence down in October

State Street Global Markets’ Global Investor Confidence Index dropped to 80.1 points in October, driven by a 17.4 drop from European investors due to COVID-19 concerns.

28 October

TPB deregisters tax agent for SAN misuse

The self-managed superannuation fund tax agent made false statements that indicated audits had been done when they had not.

Any levy on the major banks and Macquarie should be applied by the Commonwealth Government and at a higher rate, ME Bank believes. The industry superannuation fund owned bank said it agreed with the South Australian Government that the banks that benefite

27 October

Link’s McMurtrie rebuts takeover consortium’s claims

Link Administration is in good shape despite Government policy and despite the claims of a takeover consortium, according to its outgoing managing director, John McMurtrie.

http://www.superreview.com.au/news/superannuation/unlisted-assets-help-industry-funds

27 October

Contributions and asset allocation need personalisation

Personalising contributions and asset allocation by focusing on a superannuation members’ lifestyle desires will be able to improve their retirement income goals, according to Russell Investments.

27 October

Financial advice

ASIC explains no action position on super advice

Superannuation funds identified as having delivered advice which might be detrimental to their members were asked to do no more than put it right and confirm they had done so to the Australian Securities and Investments Commission.

Sarah Jane Busteed has been charged after dishonestly obtaining a financial advantage by deception in relation to SMSF property investments.

27 October

Unlicensed SMSF business ordered to windup

The Federal Court has ordered Secure Investments and Aqulia Group to wind up after it found Secure Investments and its director Mudasir Naseeruddin had breached the Corporations Act.

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.

27 October

Institutional investment

‘Disappointingly slow’ progress on investment industry diversity

Willis Towers Watson has outlined eight steps that firms can use to improve their rate of progress on diversity.

27 October

Bravura signs contract with Aware Super

The financial services software provider has signed Aware Super to a seven-year contract to provide a suite of products, including Sonata Alta.

22 October

Super performance test could create oligopoly

The Government’s proposed super performance test could achieve ‘mega scale’ but at a price of diseconomies of scale and concentration risk, JANA believes.

MLC’s online technical resource visits by licensee and independent financial planners have increased by 104 per cent from the previous year since the 2016 Budget superannuation reforms. MLC said the most popular technical content developed for adviser aud

22 October

Institutional investment

Why super funds should embrace franking credits

The Australian Labor Party might have wanted to get rid of franking credits at the last Federal Election but it is now being suggested that they should be embedded by superannuation funds as part of their strategy approaches for retiree members.

22 October

AustralianSuper wins Super Fund of the Year 2020

Super Review along with its research partner, The Heron Partnership, have announced the winners of the Super Fund of the Year Awards.

The Superannuation Complaints Tribunal received 1,739 complaints of which 91 per cent were resolved, according to its annual report.

22 October

12% of COVID-19 complaints to AFCA were super based

Most issues relating to the early release of superannuation were surrounding member identification and members “jumping the gun” if their funds were not received within five business days, according to the Australian Financial Complaints Authority.

22 October

COVID-19 has stopped funds ‘spinning wheels’ with APRA

The pandemic has allowed superannuation funds to have more iterative dialogue and real conversations with the regulator rather than crafting perfect communications, according to the Australian Prudential Regulation Authority.

Three-in-five Australians are worried they did not have enough money in retirement, a Mortgage Choice’s study has revealed.

22 October

Early access scheme impacted adequacy, sustainability, integrity

The COVID-19 early release superannuation scheme has forced people to choose between poverty now or poverty in retirement, the Australian Institute of Superannuation Trustee believes.

22 October

People & products

Statewide Super appoints CTO

David Cook has been appointed as Statewide’s chief technology officer and will look to improve members’ online interactions with the fund.

First Super advisers to visit members

20 October

Financial advice

Most super advice should be classified as ‘simple personal advice’

Only superannuation advice regarding consolidating other accounts including defined benefit along with retirement advice should be classified as ‘complex personal advice’, while all self-managed super fund advice should be categorised as ‘specialised personal advice’, according to a report.

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 October

New APRA confirms value of group insurance

The latest Australian Prudential Regulation Authority has confirmed the value of group insurance within superannuation.

20 October

Australia drops rank in Global Pension Index

Australia has dropped one place down to fourth in the Mercer CFA Institute Global Pension Index, as the COVID-19 pandemic puts pressure on global retirement systems.

Three-quarters of SMSF-focused advisers using platforms with established managed accounts are expecting to increasing their on-platform FUA, according to Tria.

20 October

Funds management

AMP NZWM moves to passive structure

AMP’s New Zealand Wealth Management’s new index-based investment approach will see funds transition by the first half of 2021.

20 October

People & products

MIESF CEO to retire

Meat Industry Employees’ Superannuation Fund chief executive, Bill McRobert, will retire in 2021 after leading the fund for 13 years.

The latest Chant West data confirms the degree to which unlisted allocations help industry fund performances.

20 October

Funds management

Macquarie outpaces rivals with $583b AUM

Macquarie Group has ranked as the largest asset manager in Australia with US$412 billion ($583 billion) in assets under management, significantly greater than its nearest rival at $163 billion.

19 October

Growth super funds up 2%

Median growth superannuation funds performed well in the September quarter thanks to strong international shares and have mostly recovered losses experienced in February and March, according to Chant West.

15 October

Group insurance profitability takes hit

The Government’s policy changes around insurance inside superannuation has combined with the impact of COVID-19 to undercut the profitability of group insurance.

“LGS is one of the first super funds to be certified by RIAA’s new program. We will receive the RIAA responsible investor trade mark for our whole super fund, which endorses our long-standing commitment to superior environmental, social and governance (ES

15 October

APRA issues warning on super fund ownership and control

The Australian Prudential Regulation Authority has written to superannuation funds warning them to get up to date with the details of any shareholdings delivering ownership and control.

15 October

Financial advice

Stephen Jones challenges whether advice is affordable or not

The Shadow Assistant Treasurer and Shadow Minister for Financial Services, Stephen Jones, has challenged whether advice is actually affordable or not given Australians are retiring with more savings than ever.

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