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.

The Federal Government’s First Home Super Saver Scheme (FHSSS) is not consistent with the Superannuation Industry (Supervision) Act (SIS Act) sole purpose test, according to the Australian Institute of Superannuation Trustees (AIST). In its submission to

22 September

Institutional investment

Trustees reminded that AFCA can make breach referrals to ASIC and APRA

The Australian Financial Complaints Authority has no alternative but to make referrals to either the Australian Securities and Investments Commission or the Australian Prudential Regulation Authority when it detects breaches on the part of superannuation funds.

Departure (2)300

22 September

Institutional investment

AFCA moves to handle unfinished SCT business

The Superannuation Complaints Tribunal will cease to exist at the end of December and the Australian Financial Complaints Authority is putting in place arrangements to handle any unfinished business.

22 September

SG amnesty produces $600m

With the deadline for superannuation guarantee amnesty passed, ASFA has deemed it a success as $600 million will be placed into the accounts of 400,000 Australians.

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

22 September

Warakirri and GBST extend partnership

Both firms have extended its after-tax services partnership to support superannuation funds with their global equities benchmarks.

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

22 September

Flexstone awarded Hostplus PE mandate

The global private investments firm owned by Natixis Investment Managers has been awarded a US$100 million private equity mandate from the industry superannuation fund.

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

22 September

Institutional investment

Time for new era of ‘big governments’

A new era, during which governments will take a more direct and proactive role in economic policy and management through fiscal policy, has begun to emerge.

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

18 September

Median balanced fund up 1.8% in August

While recovery momentum helped bolster account balances in August, the second half of 2020 will be dependent on COVID-19 infection rates and the gradual easing of restrictions across the country, according to SuperRatings.

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

18 September

ASIC adds conditions to two SMSF auditors' registrations

The corporate regulator has added new conditions to the registration of two SMSF auditors, William Krammer and Yuk Wong.

17 September

Lower cost option for super mergers needed

The cost of a merger can be an impediment to both the small and large superannuation funds involved and a lower cost option needs to be available to curb this issue, according to a panel.

17 September

How spooked super fund members crystallised their losses

New data has revealed how thousands of superannuation fund members and a few super fund trustees crystallised their losses in a 30-day period of turmoil generated by the COVID-19 pandemic.

“The other issue is people potentially dipping into their SMSF illegally, which often trips them up with the ATO – it happens more than you think.

17 September

People & products

Heffron launches SMSF COVID-19 rent relief tool

The tool guides self-managed superannuation fund advisers through the Australian Taxation Office’s compliance requirements for SMSF landlords that provided rent relief to tenants.

17 September

Institutional investment

Actuaries Institute finds COVID-19 deaths higher than expected

A two-week period earlier this year saw around 400 more deaths than usual with many of these likely to be unknowingly related to COVID-19.

17 September

Super Fund of the Year finalists announced

The Super Review awards with research partner, the Heron Partnership, has announced the 2020 finalists for the eight categories.

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

16 September

UniSuper climate plan has ‘loopholes’: Market Forces

The industry super fund has said it would only target an absolute reduction in its portfolio emissions “where practical”.

16 September

Median growth super fund returns 1.7% in August

Strong listed share market returns were the main drivers of growth fund performance during August with Australian shares returning 3% and international shares returning 5.8% in hedged terms, according to Chant West.

A new study conducted by AIA Australia has confirmed strong support for the provision of income protection insurance within super.

15 September

Group insurance inflows hit by PYS

The latest data from Dexx&r has confirmed the degree to which the Government’s Protecting Your Super measures have adversely impacted group insurance premium flows.

15 September

How some people paid nearly $300 for free super early release

At least two companies were warned by the regulator to stop charging fees ranging from $199 to $299 for facilitating superannuation early release when the process is meant to be free.

Superannuation returns defied early volatility to finish 2016 in positive territory.

15 September

Did absolute return super funds do their job?

Only one out of the largest absolute return superannuation funds has managed to make a return since the start of 2020, according to data.

15 September

Financial advice

Intrafund advice must leave clients better off says ASIC

Intrafund advice must be seen to leave clients better off or it will likely fail best interests, according to the Australian Securities and Investments Commission.

Fix problems300

15 September

Have Govt bonds and fixed interest become problematic?

New analysis suggests that superannuation fund members and retirees need to look beyond Government bonds and fixed interest to weather prolonged recessionary conditions.

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

15 September

People & products

HESTA appoints portfolio management lead

The industry super fund has appointed Alan Sheen to lead its growth, defensive, and unlisted asset class portfolios.

15 September

Institutional investment

FTSE Russell launches green revenue system

The classification system from the data provider would determine the environmental impact of over 16,000 companies.

14 September

Financial advice

NAB super entities hit by $57.5 million court penalties

National Australia Bank super entities NULIS and MLC Nominees have been hit by Federal Court penalties out of an Australian Securities and Investments Commission action on plan service fees.

11 September

Ombudsman weighs in on pausing the SG with tax offsets

The Small Business Ombudsman has weighed into the volatile political area of superannuation by pushing a two-year pause in the superannuation guarantee offset by cuts to the SG contribution tax.

Magnifying Glass

10 September

Liberal committee chair accused of unduly targeting industry funds

Industry superannuation funds appeared to have been unduly targeted by the Liberal Party chair of the House of Representatives Standing Committee on Economics, according to the Federal Opposition.

10 September

FSC declares opposition to using super for housing

The Financial Services Council has declared its opposition to people using their superannuation for a first home deposit declaring the argument does not stack up and would risk inflating house prices.

10 September

Only one infrastructure super fund made a return

HESTA’s infrastructure fund so far this year has returned 1.72% compared to the infrastructure super fund average loss of 10.8%, according to data.

10 September

Institutional investment

Super funds need to set ESG targets in portfolios

Setting targets to reduce carbon emissions in superannuation fund portfolios will send a message to companies they are invested in to set targets themselves to help transition to a low carbon economy, according to First State Super.

Proposed new portfolio disclosure holdings requirements will force super funds to more clearly disclose the value of direct and unlisted investments.

10 September

Extension for RG 97 PDS requirements

Product disclosure statements from superannuation and managed investment product issuers given on or after 30 September, 2022, must comply with the new fees and costs requirements.

10 September

Financial advice

SMSFA launches online education models

The SMSF Association has launched nine compulsory online modules as part of its SMSF Specialist Advisor designation.

10 September

AIIB and Amundi launch climate change investment framework

The new framework from Amundi and Asian Infrastructure Investment Bank will be used to assess climate change risks and opportunities in line with three objectives of the Paris Agreement at the issuer level.

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 September

Younger super fund members want expanded advice options

New research has revealed that young superannuation fund members want expanded access to financial advice within their superannuation fund, with some even willing to be referred to an adviser.

Super funds continue to lag in capturing and leveraging customer data, and lack the sophisticated framework needed to make use of it.

8 September

Global equity super funds beat Aussie equity

The average global equity super fund has lost 1.6% so far this year compared to a loss of 6.6% for Australian equity super funds, according to data.

8 September

How Australian super funds shone before COVID-19 and early release

Australian superannuation funds have been shown to have significantly outperformed their international peers in 2019 – something which has likely changed in 2020.

8 September

Govt using super as dipping piggy bank: ACTU

Superannuation members should not have to choose between owning a home and a dignified retirement, the Australian Council of Trade Unions believes.

Superannuation funds can and should be allowed to play a greater role in collecting unpaid superannuation guarantee (SG) contributions directly from employers, according to major building and construction industry fund Cbus. Cbus, which found itself in tr

8 September

Govt urged to include unpaid SG in FEG

The Association of Superannuation Funds of Australia has urged the Government to include unpaid superannuation guarantee payments in its Fair Entitlement Guarantee regime.

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

8 September

People & products

JANA appoints head of insurance

The firm has promoted senior consultant and global equities research team member Greg Wilkinson to the role.

The Australian Prudential Regulation Authority (APRA) has sent a clear signal to superannuation funds that it is unhappy with director selection processes which preclude the ability of boards to reject directors who they believe are not appropriately qual

3 September

People & products

MTAA Super and Tasplan confirm executive team

MTAA Super chief executive Leeanne Turner will lead the combined fund and Dr Ross Barry has been appointed as its chief investment officer.

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

3 September

IOOF acquires super scale but not without problems

IOOF is set to become Australia’s second largest superannuation industry via its acquisition of MLC Wealth but the transaction documents point to a challenging transitional process.

The rules around the provision of scaled advice should not be watered down just because the banks have difficulty in dealing with them, according to a submission by both Industry Super Australia (ISA) and the Australian Institute of Superannuation Trustee

3 September

Financial advice

More not less advice needed in super

Superannuation funds need the ability to deliver a wider range of financial advice to members, according to a roundtable.

3 September

SG shortfall amnesty needs extension

Accountants and advisers have pushed amnesty work to one side to help deliver assistance to clients regarding JobKeeper and cashflow boosts, according to The Tax Institute.

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

3 September

Businesses can afford $1 extra per day for SG increase

Corporate profits were up 15% in the June quarter while wages and salaries were down 2.5%, meaning businesses can support the increase in the superannuation guarantee, according to a super body.

3 September

Super tax change painful for retirees

The potential changes around increasing superannuation taxes due to rapidly growing budget deficit could hurt member balances at retirement, according to Parametric.

3 September

SMSF Association welcomes SMSF member increase bill

The bill would see the maximum allowable number of members in a self-managed super fund increase from four to six.

1 September

APRA canvasses COVID-19 super fund exits

The Australian Prudential Regulation Authority has canvassed the likelihood that some already struggling superannuation funds may be forced out of the sector by the difficulties associated with the prolonged COVID-19 pandemic.

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

1 September

Is superannuation too big to let politicians play with it?

Superannuation should be placed under an independent authority such as the Reserve Bank rather have it subjected to political game-playing, according to a roundtable of senior industry executives.

1 September

Repeat early release members took out average $16k

Over the week to 23 August there were 59,000 applications, a drop from 70,000 the week before, according to data.

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

1 September

Blocking SG increase won’t lead to wage growth: ACTU

Stalling the superannuation guarantee increase will cost Australians $14.1 billion every year with the average Australian taking a $1,30 annual hit to their retirement savings, according to the Australian Council of Trade Unions.

Investor confidence fell globally as aggressive easing by the European central bank was not enough to boost sentiment, according to State Street.

1 September

Custody assets drop 7.7%

The custody sector has dropped to $3.75 trillion from $4.1 trillion largely as a result of market valuation impacts due to the COVID-19 pandemic, according to data.

A new survey has revealed that most people think fund mergers are justified if they result in fee reductions to members.

1 September

Christian Super to reduce fees

The fund’s typical member with $50,000 invested in a MySuper product would see a reduction of $55 per year.

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 23 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