SUPERANNUATION – AUSTRALIA

Retail super funds face member flight

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Original article by Cliona O’Dowd
The Australian – Page: 15 : 8-Jul-20

Research by KPMG suggests that nearly 25 per cent of retail superannuation fund members are likely to switch funds during the next year, compared with less than 10 per cent of industry super fund members. KPMG partner Tim Thomas says lower fees of industry funds is a major contributor to the expected exodus of retail fund members. However, he cautions that industry funds risk a similar loss of members if they do not take action to improve the quality of their services. KPMG has also found that nearly 80 per cent of consumers now prefer to interact with financial services providers via digital channels.

CORPORATES
KPMG AUSTRALIA PTY LTD

Slim returns among super’s top performers

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Original article by Joanna Mather
The Australian Financial Review – Page: 6 : 7-Jul-20

Chant West has forecast that the median superannuation fund will post a return of minus 1.3 per cent for 2019-20. The firm also expects the returns for growths to range from minus six per cent to three per cent. Meanwhile, First State Super is among the super funds that have defied the trend, posting a return of 1.3 per cent for the financial year. Cbus achieved a return of 0.75 per cent, and chief investment officer Kristian Fok says a number of factors contributed to the positive return.

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD, FIRST STATE SUPER, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND

Media Super poised for $62b Cbus link

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Original article by Joanna Mather, Michael Roddan
The Australian Financial Review – Page: 3 : 25-Jun-20

Media Super chairman Gerard Noonan has confirmed that the industry superannuation fund is in the "very early stages" of talks regarding a merger with Cbus. He stresses that Media Super is likely to retain its own branding if the deal proceeds. The fund short-listed Cbus and AustralianSuper as potential merger candidates following a tender process. Media Super has about 75,000 members and some $6bn worth of assets under management. Data from the Australian Prudential Regulation Authority shows that Media Super has lost an average of six per cent of its members annually over the past three years.

CORPORATES
MEDIA SUPER LIMITED, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, AUSTRALIANSUPER PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Brace for negative super returns: Silk

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Original article by Richard Gluyas
The Australian – Page: 13 & 20 : 29-May-20

AustralianSuper’s balanced investment option has posted a return of minus 3.3 per cent for the year to April, following a coronavirus-induced rout in financial markets in the March quarter. CEO Ian Silk has warned that the balanced option is likely to post its first negative return for a financial year since the global financial crisis. However, he notes that the balanced option has delivered an average return of eight per cent over the last decade. Silk adds that some 200,000 AustralianSuper members have utilised the federal government’s early access scheme.

CORPORATES
AUSTRALIANSUPER PTY LTD

Super sector should shrink 80pc: report

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Original article by James Thomson
The Australian Financial Review – Page: 19 : 25-May-20

Management consulting firm Right Lane contends that a major rationalisation of Australia’s superannuation sector is necessary. Associate principal Abhishek Chhikara suggests that there is scope for 3-5 large "generalist" funds and 7-10 niche funds that are focused on specific industries or types of super products. Right Lane estimates that a super fund needs a minimum of 500,000 active members in order to operate efficiently, and ideally they should have between one and two million active members. The firm expects the pandemic to increase the pressure on smaller funds.

CORPORATES
RIGHT LANE CONSULTING

Billions of early super released

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Original article by Cliona O’Dowd
The Australian – Page: 13 & 17 : 24-Apr-20

The Australian Taxation Office has already approved 456,000 applications from superannuation fund members who want to utilise the federal government’s early access scheme. Some $3.8m worth of withdrawals have been approved since the scheme opened on 20 April; more than 900,000 people had previously registered interest in the scheme, which is restricted to fund members who have experienced financial hardship due to the pandemic. Association of Super Funds of Australia CEO Martin Fahy has downplayed concerns that some super funds may face liquidity issues due to the early access scheme.

CORPORATES
AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE TREASURY, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED

ASX equities to be hit by forced selling as workers grab super

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Original article by Melissa Yeo
The Australian – Page: 20 : 23-Apr-20

Matthew Ross of Goldman Sachs estimates that up to $44bn could be withdrawn from superannuation funds by people who have been financially hit by the pandemic, compared with the federal government’s forecast of $27bn. The early access scheme may result in liquidity issues for some super funds, which could in turn be forced to reduce their exposure to shares. Ross says this could potentially reduce the benchmark S&P/ASX 200’s market ­capitalisation by around 0.45 per cent.

CORPORATES
GOLDMAN SACHS AUSTRALIA PTY LTD, STANDARD AND POOR’S ASX 200 INDEX

Self-Managed and Public Sector Super Funds increase satisfaction in March, but Industry & Retail both down

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Original article by Roy Morgan
Market Research Update – Page: Online : 22-Apr-20

New data from Roy Morgan’s Superannuation Satisfaction Report shows that Self-Managed Funds and Public Sector Funds both increased their satisfaction in March, despite significant market upheaval with the ASX200 falling significantly from its February record high. As a sector, Self-Managed Funds have the highest level of customer satisfaction (75.0%), up 0.3% from February, followed by Public Sector Funds on 74.5% (+0.3%). In contrast, satisfaction with Industry Funds fell by 1.1% in a month to 64.4%, while Retail Funds were down 0.2% to 60%. The report’s findings come from the Roy Morgan Single Source survey, Australia’s most comprehensive and trusted consumer survey.

CORPORATES
ROY MORGAN LIMITED

Super funds lose billions as crisis hits

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Original article by Michael Roddan
The Australian – Page: 15 & 22 : 25-Mar-20

The financial market turmoil caused by the coronavirus pandemic has weighed on asset valuations in the superannuation industry. AustralianSuper has slashed the value of its portfolio of unlisted assets by 7.5 per cent, while IFM Investors has cut the valuations of its Australian unlisted assets by an average of 7.6 per cent. Both group have exposure to a range of infrastructure assets, such as airports and toll roads. Other super funds are also reviewing the value of their unlisted assets.

CORPORATES
AUSTRALIANSUPER PTY LTD, IFM INVESTORS PTY LTD

Super fund satisfaction at risk as markets tumble

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Original article by Roy Morgan
Market Research Update – Page: Online : 25-Mar-20

New data in Roy Morgan’s Superannuation Satisfaction Report shows that CARE Super has the highest customer satisfaction rating, at 74.5%. Self-managed funds scored the highest average satisfaction when compared to other sectors. The Superannuation Satisfaction Report, with data up to February 2020, shows CARE Super on 74.5%, an increase of 9.2% on 12 months ago. It placed ahead of Tasplan on 72.8% (+6.9%), Unisuper on 72.7% (+1.5%) and Cbus on 71.0% (+5.0%). Roy Morgan CEO Michele Levine says that given recent heavy losses in equities markets due to the Coronavirus pandemic, these levels of customer satisfaction may be the highest we see for some time. 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, CARE SUPER PTY LTD, TASPLAN LIMITED, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND