K63 Insurance and Superannuation Funds

APRA urges caution on super reforms

roymorgansocial Leave a comment

Original article by Andrew White
The Australian – Page: 17 & 18 : 6-Aug-18

The Australian Prudential Regulation Authority’s deputy chair Helen Rowell says superannuation funds that are excluded from the proposed list of the 10 best-performing funds may face problems such as liquidity issues and doubts about their sustainability over the medium to long-term. She adds that the Productivity Commission’s proposed changes to the default super regime would increase APRA’s workload, as it would have to work more closely with registrable superannuation entities that do not make the "best in show" list.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIA. FAIR WORK COMMISSION

Industry Superannuation Funds show greatest gains in satisfaction

roymorgansocial Leave a comment

Original article by Roy Morgan
Market Research Update – Page: Online : 30-Jul-18

New findings from Roy Morgan show that in the six months to June 2018, industry superfund members with balances over $5,000 had higher levels of satisfaction with their fund’s performance compared to those with retail and self-managed fund (SMSFs). Over the last 12 months, industry funds have showed gains in satisfaction across all balance segments, with the best performance being a gain of 9.5% points in the over $700k group, followed by 5.0% points in the $250k to $699k segment and 4.4% points for the $100k to $249k segment. Self-managed funds had losses in satisfaction in all of these important groups, with the greatest decline being 18.3% points in the $100k to $249K bracket. Retail funds’ major gain was 10.9% points in the under $5k segment and 1.6% points in the $700k and over segment, with the other segments showing losses. Roy Morgan’s findings are based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including over 30,000 with superannuation.

CORPORATES
ROY MORGAN LIMITED

Super funds face heat over other expenses

roymorgansocial Leave a comment

Original article by Joanna Mather
The Australian Financial Review – Page: 1 & 4 : 25-Jul-18

The classification of superannuation funds’ expenses in the category of "other" has come under scrutiny in a background paper issued by the banking royal commission. About 20 per cent of industry super funds’ expenses are categorised as "other", compared with around 10 per cent of retail funds’ expenses. The background paper also notes that many people who switch super funds in search of lower fees and higher returns often end up with higher fees and lower returns. Superannuation will be a focus of the inquiry’s next round of public hearings, which begin on 6 August.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIA. PRODUCTIVITY COMMISSION, RICE WARNER ACTUARIES PTY LTD

Hayne to probe industry super funds over union sponsorships

roymorgansocial Leave a comment

Original article by Michael Roddan
The Australian – Page: 17 & 21 : 20-Jul-18

The superannuation industry will be a key focus of the banking royal commission’s next round of hearings, which will commence on 6 August. AustralianSuper, Hostplus and Cbus are believed to be among the industry super funds that have been asked to provide the inquiry with information on their sponsorship arrangements with unions. However, the inquiry is not believed to have requested similar information regarding such deals with employers’ groups.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIANSUPER PTY LTD, HOST-PLUS, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED, AMP LIMITED – ASX AMP, WESTPAC BANKING CORPORATION – ASX WBC, THE NEW DAILY, INDUSTRY SUPER HOLDINGS PTY LTD, ME BANK, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, MASTER BUILDERS AUSTRALIA INCORPORATED, ACTU, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA

Super funds notch ninth year of growth

roymorgansocial Leave a comment

Original article by Joanna Mather
The Australian Financial Review – Page: 18 : 19-Jul-18

Data from Chant West shows that Australia’s median growth superannuation fund achieved a return of 9.2 per cent in 2017-18. Mano Mohankumar of Chant West says growth funds have achieved positive returns for nine consecutive years, with an average annual return of nine per cent over the period. Hostplus delivered the best return for the financial year, at 12.5 per cent, ahead of AustSafe Super and Statewide Super. Unisuper was the top performer over 10 years, with an average annual return of 7.6 per cent.

CORPORATES
CHANT WEST HOLDINGS LIMITED – ASX CWL, HOST-PLUS, AUSTSAFE PTY LTD, STATEWIDE SUPERANNUATION PTY LTD, UNISUPER LIMITED, AUSTRALIANSUPER PTY LTD, SUNSUPER PTY LTD, SUPERRATINGS PTY LTD

Funds in black for ninth year in a row

roymorgansocial Leave a comment

Original article by Cliona O’Dowd
The Australian – Page: 21 : 17-Jul-18

Preliminary data shows that Australia’s median growth superannuation fund achieved a return of nine per cent in 2017-18, compared with the S&P/ASX 200’s gain of 8.3 per cent. Data from Chant West shows that the median growth fund’s return since fiscal 2009 has averaged 9.5 per cent, for a cumulative return over the period of more than 130 per cent. The funds with the highest returns are expected to have gained at least 12 per cent in 2017-18. Meanwhile, MLC Super’s chief investment officer Jonathan Armitage says returns are likely to be lower in the next several years.

CORPORATES
CHANT WEST HOLDINGS LIMITED – ASX CWL, MLC LIMITED, AUSTRALIANSUPER PTY LTD, HOST-PLUS, REST SUPER PTY LTD, STANDARD AND POOR’S ASX 200 INDEX

Directors hit in Hayne fallout

roymorgansocial Leave a comment

Original article by Alice Uribe
The Australian Financial Review – Page: 1 & 2 : 9-Jul-18

Providers of directors’ and officers’ insurance have increased their premiums by an average of 70 per cent over the past six months due to costs incurred as a result of class actions. Eden Fletcher of Aon Risk Solutions notes that providers have moved to prevent further losses on class action policies they offer by inserting exclusions that would see them refuse to cover companies hit by class actions resulting from the banking royal commission. There are potentially up 20 class actions pending as a result of the royal commission, with AMP alone facing five lawsuits over its fee-for-no-service scandal.

CORPORATES
AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AON RISK SERVICES AUSTRALIA LIMITED, AMP LIMITED – ASX AMP, CHUBB CORPORATION, BERKSHIRE HATHAWAY INCORPORATED, AUSTRALIAN LAW REFORM COMMISSION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, BENDIGO AND ADELAIDE BANK LIMITED – ASX BEN, RABOBANK AUSTRALIA LIMITED, QBE INSURANCE GROUP LIMITED – ASX QBE, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, AMERICAN INTERNATIONAL GROUP INCORPORATED, XL CATLIN

Sunsuper swallows another fund

roymorgansocial Leave a comment

Original article by Joanna Mather
The Australian Financial Review – Page: 16 : 6-Jul-18

Sunsuper will merge with AustSafe Super, a $2.2 billion industry super fund that targets regional and rural Australians. The merger will create a $58 billion fund with 1.4 million members. The Australian Prudential Regulation Authority is keen to see smaller superannuation funds merge, while Sunsuper CEO Scott Hartley believes that the sector will consolidate to the point where only half a dozen "mega" funds remain.

CORPORATES
SUNSUPER PTY LTD, AUSTSAFE PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, KINETIC SUPER, AUSTRALIA. PRODUCTIVITY COMMISSION, CHANT WEST FINANCIAL SERVICES PTY LTD

DIY super is built on dodgy advice

roymorgansocial Leave a comment

Original article by Caitlin Fitzsimmons
The Age – Page: 20 : 29-Jun-18

The Australian Securities & Investments Commission’s deputy chairman Peter Kell says the financial planning industry needs to lift its game when it comes to providing advice to the $A697bn self-managed superannuation fund sector. Kell was commenting on an ASIC report which contends that nine out of every 10 SMSFs are "underpinned" by sub-standard financial advice. The number of SMSFs grew by an average of 5.2 per cent a year between 2010 and 2017, while there were over 590,000 SMSFs at the end of June 2017.

CORPORATES
AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. PRODUCTIVITY COMMISSION

ACCC slams health insurers

roymorgansocial Leave a comment

Original article by Sarah-Jane Tasker
The Australian – Page: 17 & 28 : 26-Jun-18

Complaints to the Private Health Insurance Ombudsman rose by 30 per cent in 2016-17, with benefit payments again attracting the most complaints. The Australian Competition & Consumer Commission’s acting chair Delia Rickard says the health insurance sector needs to become more transparent about its policies if it wants to restore consumer trust. Australians paid around $A23.1 billion in health insurance premiums in 2016-17, an increase of $A1 billion over the previous year.

CORPORATES
PRIVATE HEALTH INSURANCE OMBUDSMAN, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, BUPA AUSTRALIA PTY LTD, MEDIBANK PRIVATE LIMITED – ASX MPL, THE HOSPITAL CONTRIBUTIONS FUND OF AUSTRALIA LIMITED, NIB HOLDINGS LIMITED – ASX NHF, HBF HEALTH LIMITED