K63 Insurance and Superannuation Funds

$2.5m super cap gains support

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Original article by Sally Rose
The Australian Financial Review – Page: 6 : 4-Aug-15

There is growing support among superannuation funds for the introduction of a cap on super balances of at least $A2.5 million. The Actuaries Institute expressed support for the cap in its submission to the Australian Government’s tax inquiry, which closed on 31 July 2015. The institute also believes that the transfer of super from the accumulation to retirement phase should trigger capital gains tax liability.

CORPORATES
THE INSTITUTE OF ACTUARIES OF AUSTRALIA, GRATTAN INSTITUTE, BT FINANCIAL GROUP PTY LTD, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, TOWERS WATSON, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, FINANCIAL SERVICES COUNCIL, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN TAXATION OFFICE

ANZ offers women free super advice

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Original article by Ruth Liew
The Australian Financial Review – Page: 3 : 29-Jul-15

It is estimated that Australian women who work full-time are paid about $A15,000 less each year than their male peers. Women also tend to have about 50 per cent less in superannuation upon retirement. The ANZ Bank has launched initiatives aimed at addressing this imbalance. Female customers whose super balance is less than $A50,000 will be offered free financial advice. ANZ’s female employees will also be paid an additional $A500 in super each year.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, QUEENSLAND. DEPT OF THE PREMIER AND CABINET

Super board overhaul will cost up to $168m

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Original article by Joanna Mather
The Australian Financial Review – Page: 7 : 29-Jul-15

Industry Super Australia has estimated that implementing the Federal Government’s governance reforms for the superannuation industry will cost between $A89m and $A168m. Amongst other things, super funds will have to recruit and train new directors in order to comply with the requirement that 33 per cent of directors – and the chair – are independent. Australian Institute of Company Directors CEO John Brogden rejects suggestions that directors will demand higher fees for being on the board of a super fund.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN INSTITUTE OF COMPANY DIRECTORS, FINANCIAL SERVICES COUNCIL, AUSTRALIA. DEPT OF THE TREASURY

SMSFs opt for better returns

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Original article by Kate Cowling
The Australian Financial Review – Page: 6 : 28-Jul-15

A report by the SMSF Association and nabtrade shows that 15 per cent of self-managed superannuation fund members opted to outsource the investment process in 2014. This compares with just 7.3 per cent in 2012. Almost 40 per cent of SMSF investors chose to handle investment decisions themselves in 2014, which has not changed much since 2012. The report also shows that falling interest rates have prompted many SMSF members to increase their exposure to assets such as shares.

CORPORATES
SELF-MANAGED SUPER FUND ASSOCIATION OF AUSTRALIA PTY LTD, NABTRADE

Selfie investors snub cash, shares

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Original article by Kate Cowling
The Australian Financial Review – Page: 22 : 22-Jul-15

The investment portfolios of Australian self-managed superannuation funds (SMSFs) have usually been focused on assets such as local shares, cash and term deposits. However, AMP Capital and BlackRock are among the groups that have noted greater interest in their absolute return funds among SMSFs. Hasan Tevfik of Credit Suisse says SMSFs often change their asset allocations in order to boost income, although he adds that this typically means increased exposure to shares.

CORPORATES
AMP CAPITAL INVESTORS LIMITED, BLACKROCK INVESTMENT MANAGEMENT (AUSTRALIA) LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, TOWERS WATSON, PERPETUAL PRIVATE CLIENTS, AUSTRALIAN TAXATION OFFICE

QSuper’s skew strikes right balance

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Original article by Sally Rose
The Australian Financial Review – Page: 14 : 20-Jul-15

Data from Chant West shows that QSuper’s balanced option achieved a return of 12.3 per cent for 2014-15, topping the performance charts. Brad Holzberger, the superannuation fund’s chief investment officer, attributes QSuper’s performance to its portfolio’s high exposure to long-term sovereign bonds and its lower allocation toward domestic shares. The MTAA My AutoSuper fund delivered a return of 11.7 per cent, while all of the balanced funds in the top 10 achieved a double-digit return.

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD, QSUPER LIMITED, MOTOR TRADES ASSOCIATION OF AUSTRALIA SUPERANNUATION FUND PTY LTD, STATEWIDE SUPERANNUATION PTY LTD, AMP LIMITED – ASX AMP, VICSUPER PTY LTD, UNISUPER LIMITED, HOST-PLUS, INTRUST SUPER FUND, MLC LIMITED, AUSTRALIANSUPER PTY LTD, REST SUPER PTY LTD

Medibank accused of bullying in contract talks

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Original article by Jessica Gardner
The Australian Financial Review – Page: 19 : 17-Jul-15

The Australian Private Hospitals Association (APHA) has criticised Medibank Private over its dealings with private hospital operator Calvary Health Care. Medibank abandoned negotiations over a new contract with Calvary in early July 2015, and the APHA has claimed that the private health insurer used bullying tactics. Medibank has rejected the accusations and says it acted appropriately in its negotiations with Calvary.

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, CALVARY HEALTH CARE LIMITED, AUSTRALIAN PRIVATE HOSPITALS ASSOCIATION LIMITED, RAMSAY HEALTH CARE LIMITED – ASX RHC, HEALTHSCOPE LIMITED – ASX HSO

Three in a row for AustralianSuper

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Original article by Sally Rose
The Australian Financial Review – Page: 21 : 15-Jul-15

Chant West expects balanced superannuation funds to achieve a median return of 9.5 per cent for 2014-15. Meanwhile, AustralianSuper has reported a return of 10.9 for its balanced option in 2014-15, while its combined return for the last three financial years was 46 per cent. Deputy CEO Mark Delaney says the sharp fall in the value of the Australian dollar contributed to the performance of the group’s balanced fund in 2014-15.

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD, AUSTRALIANSUPER PTY LTD, TOWERS WATSON, RICE WARNER ACTUARIES PTY LTD, FRONTIER ADVISORS PTY LTD

Professional indemnity premiums likely to rise

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Original article by Ruth Liew
The Australian Financial Review – Page: 17 : 13-Jul-15

The cost of professional indemnity insurance for Australian small and medium businesses fell by 18 per cent in 2013-14, according to BizCover. Factors such as strong competition in the sector and excess insurance capacity also resulted in premiums falling by an additional two per cent in 2014-15. However, experts note the growing trend for mergers and acquisitions in the global insurance sector, which may put upward pressure on premiums.

CORPORATES
BIZCOVER PTY LTD, MORGAN STANLEY AND COMPANY INCORPORATED, ACE INSURANCE COMPANY, CHUBB CORPORATION, WESFARMERS LIMITED – ASX WES, INSURANCE AUSTRALIA GROUP LIMITED – ASX IAG, XL GROUP, CATLIN GROUP, BERKSHIRE HATHAWAY INCORPORATED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

nib snares World Nomads

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Original article by Tim Binsted
The Australian Financial Review – Page: 24 : 9-Jul-15

Australian-listed NIB Holdings has expanded into the travel insurance market with a $A95m deal to buy World Nomads Group. NIB MD Mark Fitzgibbon says World Nomads will complement the group’s core private health insurance business. World Nomads specialises in the distribution of travel insurance policies, and boasted normalised EBITDA of $A10m and revenue of $A117m in 2014-15.

CORPORATES
NIB HOLDINGS LIMITED – ASX NHF, WORLD NOMADS GROUP PTY LTD, FLIGHT CENTRE TRAVEL GROUP LIMITED – ASX FLT, CITIGROUP PTY LTD, AIRBNB INCORPORATED, TRAVEL INSURANCE DIRECT PTY LTD, SURESAVE TRAVEL INSURANCE, LONELY PLANET PUBLICATIONS PTY LTD, JP MORGAN AUSTRALIA LIMITED, KING AND WOOD MALLESONS