K63 Insurance and Superannuation Funds

Stapling workers to lazy super funds could cost them $300,000: AIST

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Original article by Cliona O’Dowd
The Australian – Page: 17 : 28-Oct-21

More than $56bn of workers’ retirement savings are invested in default superannuation funds that recently failed a performance test. This test was introduced as part of the ‘Your Future, Your Super’ reforms, which also include "stapling" workers to one superannuation account throughout their career. The Australian Institute of Superannuation Trustees’ CEO Eva Scheerlinck has called for changes to the stapling regime to ensure that workers are not tied to a persistently underperforming fund.

CORPORATES
AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES

Future Fund just shy of $200b after 1.2pc quarter

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 16 : 26-Oct-21

The federal government’s Future Fund has posted a return of 1.2 per cent for the September quarter, following a record gain of 10.2 per cent for the three months to June. Australian shares gained 5.34 per cent in the September quarter, while international shares gained 4.68 per cent and emerging market shares lost 4.17 per cent. The Future Fund reduced its exposure to global shares during the quarter, while its allocation to infrastructure and private equity assets increased; the latter is now its biggest asset class. The sovereign wealth fund boasts nearly $200bn worth of assets under management.

CORPORATES
AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY

Swan as new Cbus chairman an ‘insult to workers’: CFMEU

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 2 : 8-Sep-21

The Construction, Forestry, Maritime, Mining & Energy Union has described the appointment of former Labor minister Wayne Swan as chairman of industry superannuation fund Cbus as the "height of hypocrisy". The CFMMEU says the appointment is an "insult to construction workers", given Swan’s role in maintaining the building industry watchdog during his tenure as federal treasurer and deputy prime minister. The union has also suggested that there is a conflict of interests due to Swan’s role as Labor’s national president.

CORPORATES
CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND

Fess-up time: top-performing super funds put duds to shame

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Original article by Cliona O’Dowd
The Australian – Page: 17 : 2-Sep-21

The superannuation performance test data shows that Active Super was the best default MySuper fund over a seven-year period, with an average return of 9.46 per cent. It is followed by AustralianSuper (9.44 per cent) and Hostplus (9.33 per cent return). The lowest average return for the 10 best performing funds was 8.75 per cent. In contrast, EISS had the lowest average return among the 10 worst-performing funds, at just six per cent.

CORPORATES
ACTIVE SUPER, AUSTRALIANSUPER PTY LTD, HOST-PLUS, EISS SUPER

Super funds post strong July gains after big year

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Original article by Cliona O’Dowd
The Australian – Page: 17 : 19-Aug-21

Data from Chant West shows that the median growth superannuation fund gained 1.1 per cent in July, matching the rise in the Australian sharemarket for the period. This follows a return of 18 per cent for 2020-21, and the median growth fund has now gained about 27 per cent since reaching a coronavirus-induced low in late March 2020. International shares gained 1.7 per cent in hedged terms during July, while emerging markets shares fell 4.7 per cent in unhedged terms.

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD

Super fund satisfaction near record highs in June with HESTA the top fund ahead of Cbus and Unisuper

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Original article by Roy Morgan
Market Research Update – Page: Online : 28-Jul-21

New data from Roy Morgan’s Superannuation Satisfaction Report shows an overall super fund satisfaction rating of 71.7% in June 2021 – an increase of 8.6% points from June 2020, and up 6.9% points over the last six months. The rating for June is just below the record high reached a month ago and continues a series of excellent customer satisfaction ratings over the first half of 2021 as the Australian economy recovered and Australian stock markets reached new record highs. HESTA has the highest customer satisfaction rating among Industry Funds, ahead of Cbus, UniSuper, AustralianSuper and Catholic Super. The highest placed Retail Super Fund is OnePath, followed by Colonial First State, MLC and ASGARD. The strong performance of the stock market during the first half of 2021 has helped drive customer satisfaction in Industry Funds to a new record high in June 2021 of 72.3%, up 8.2% points on a year ago. Customer satisfaction is also near record highs for Public Sector Funds at 79.7% in June (up 7.6% points on a year ago), and satisfaction Retail Funds is at 67.8% (up 9.7% points on a year ago). However, the highest customer satisfaction is again for Self-Managed Funds at 80.6%, which have experienced the largest increase of 10.7% points from a year ago. The report’s findings are from Roy Morgan Single Source, Australia’s most trusted consumer survey, compiled by in-depth interviews with over 50,000 Australians each year.

CORPORATES
ROY MORGAN LIMITED

AustralianSuper targets $500bn after stellar 20pc return

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Original article by Glenda Korporaal
The Australian – Page: 13 & 20 : 6-Jul-21

AustralianSuper’s balanced option has posted a return of 20.43 per cent for 2020-21, compared with just 0.52 per cent in the previous financial year. The industry superannuation fund now boasts assets of $225m, and CEO Mark Delaney says it expects this to top $470bn by 2026. He adds that while equities are likely to perform well in 2021-22, he does not expect super funds to match their returns for 2020-21. Meanwhile, AustralianSuper has secured a deal to acquire a 40 per cent stake in the Moorebank intermodal logistics facility in Sydney.

CORPORATES
AUSTRALIANSUPER PTY LTD

Medibank pays back unused $105m

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Original article by Liam Walsh
The Australian Financial Review – Page: 20 : 30-Jun-21

Private health insurer Medibank expects about two million customers of its flagship and ahm brands to be eligible for a discount on their next premium payment. Medical procedures such as elective surgery were cancelled in 2020 due to the COVID-19 pandemic, preventing policyholders from making full use of their private health coverage. HBF is among the other health funds that have previously revealed plans to return some money to its members.

CORPORATES
MEDIBANK PRIVATE LIMITED – ASX MPL, AHM HEALTH INSURANCE, HBF HEALTH LIMITED

Super giant to reduce its stake in Ausgrid

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Original article by Perry Williams
The Australian – Page: 18 : 30-Jun-21

Industry superannuation fund AustralianSuper proposes to reduce its stake in electricity distribution company Ausgrid from 25.2 per cent to about 10 per cent. AustralianSuper and IFM Investors paid $16bn for about 50 per cent of Ausgrid in 2016, as part of the New South Wales government’s privatisation program. AustralianSuper and IFM each have a right of first offer over any sale by the other of their Ausgrid holdings; AustralianSuper is in turn one of the largest shareholders in IFM.

CORPORATES
AUSTRALIANSUPER PTY LTD, IFM INVESTORS PTY LTD, AUSGRID PTY LTD

Statewide, Hostplus in tie-up talks

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Original article by Joyce Moullakis
The Australian – Page: 13 : 29-Jun-21

Superannuation funds Statewide Super and Hostplus have confirmed they are discussing a merger that would create a fund with assets of $77 billion. Statewide Super is based in Adelaide and has assets of $10.8 billion, while Hostplus has assets of $66 billion and has traditionally focused on workers in the hospitality, tourism, recreation and sports sectors. It recently announced plans to merge with the $3 billion Intrust Super, while the Australian Prudential Regulation Authority suggested in May that any super fund with assets under $30 billion would become increasingly uncompetitive against so-called megafunds.

CORPORATES
STATEWIDE SUPERANNUATION PTY LTD, HOST-PLUS, INTRUST SUPER FUND, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY