SUPERANNUATION – AUSTRALIA

ASIC goes to court in AMP document hunt

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Original article by Ben Butler, Joyce Moullakis
The Australian – Page: 15 & 19 : 18-Dec-18

The Australian Securities & Investments Commission is seeking a court order to compel AMP to provide access to documents relating to the fees-for-no-service scandal. AMP contends that the transcripts of Clayton Utz’s interviews with AMP employees regarding the scandal are subject to legal professional privilege, which ASIC disputes. The financial services royal commission had been told that Clayton Utz’s report on the scandal had been altered following discussions with key AMP executives.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, CLAYTON UTZ, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, FEDERAL COURT OF AUSTRALIA

Super watchdog failing to bite back

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Original article by Michael Roddan
The Australian – Page: 13 & 15 : 17-Dec-18

The Australian Prudential Regulation Authority’s proposed changes to the member outcomes test for superannuation funds’ trustees have been criticised by industry bodies. Australian Institute of Superannuation Trustees CEO Eva Scheerlinck says the revised standards should have given greater priority to net investment returns, noting that the purpose of the reforms was to address the issue of super funds that consistently underperform. A draft report from the Productivity Commission in June had advocated a much stricter outcomes test.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AMP LIMITED – ASX AMP, AMP SUPERANNUATION LIMITED, NM SUPERANNUATION

Industry Superannuation Funds increase satisfaction lead

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Original article by Roy Morgan
Market Research Update – Page: Online : 26-Nov-18

New findings from Roy Morgan show that the level of satisfaction with the financial performance of industry superannuation funds was 61.8% in the six months to October 2018, compared with 58.2% for retail super funds. Satisfaction with industry funds has increased by 2.7% over the last year, compared to a gain of 1.3% points for retail funds. The only area where retail funds have higher satisfaction than industry funds is for balances below $5,000, where they lead marginally with 49.0% compared to 48.6%. However, this segment is of little current value as it only holds 0.1% of the total market value, despite having 10.9% of customers. These are the latest findings from Roy Morgan’s "Satisfaction with Financial Performance of Superannuation in Australia Report October 2018", which is 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

Superannuation unlikely to be adequate for most workers in retirement

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Original article by Roy Morgan
Market Research Update – Page: Online : 19-Nov-18

A Roy Morgan Single Source survey has found that only 18% of Australians aged 14+ with superannuation contributed beyond the compulsory level in the year to October 2018. This compares with 23% in the year to October 2009. The proportion of male workers who contribute to their superannuation beyond the compulsory level has fallen from 24.5% to 18% over this period, while the proportion of female workers who make additional contributions has fallen from 21.1% to 18.1%. The survey also shows that 35.2% of Australians in the 55-64 age group make additional super contributions well ahead of workers aged 65+ (30.7%) and 45 to 54 year olds (24.4%). Just 4.0% of those aged 14-24 make additional contributions. The Single Source Survey is based on in-depth personal interviews conducted face-to-face with over 50,000 Australians per annum in their own homes, including over 23,000 workers with superannuation.

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ROY MORGAN LIMITED

Super hit in $50bn plunge

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Original article by David Rogers, James Kirby
The Australian – Page: 1 & 2 : 26-Oct-18

The S&P/ASX 200 has shed almost seven per cent so far in 2018, including a fall of 10.8 per cent since August. The big sell-down on 25 October will impact on superannuation funds’ returns, with balanced funds having lost about 2.5 per cent so far in 2018-19. SuperRatings MD Jeff Bresnahan says most super fund members who have chosen the balanced option can expect the value of their super to fall by around four per cent in response to the sell-off.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, SUPERRATINGS PTY LTD, DOW JONES INDUSTRIAL AVERAGE INDEX, NASDAQ COMPOSITE INDEX, NIKKEI 225 INDEX, SHANGHAI COMPOSITE INDEX, BELL POTTER SECURITIES LIMITED, AMP LIMITED – ASX AMP, NETFLIX INCORPORATED, FACEBOOK INCORPORATED, ALPHABET INCORPORATED, GOOGLE INCORPORATED, XERO LIMITED – ASX XRO, AFTERPAY TOUCH GROUP LIMITED – ASX APT, WISETECH GLOBAL LIMITED – ASX WTC, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY, CORELOGIC AUSTRALIA PTY LTD

CBA faces first suit over low returns

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Original article by Michael Roddan
The Australian – Page: 21 : 11-Oct-18

The Commonwealth Bank of Australia has indicated that it will "vigorously" defend a class action launched by Slater & Gordon. The law firm contents that wealth manager Colonial First State had invested its superannuation clients’ money in CBA-owned funds that had very low returns, when it could have invested the money in higher-returning funds controlled by CBA or other banks. Other banks and financial institutions have also been targeted by class action lawyers in the wake of the financial services royal commission.

CORPORATES
COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COLONIAL FIRST STATE GROUP LIMITED, SLATER AND GORDON LIMITED – ASX SGH, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, COMMONWEALTH FINANCIAL PLANNING LIMITED, BW FINANCIAL ADVICE, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MLC LIMITED, AMP LIMITED – ASX AMP, MAURICE BLACKBURN PTY LTD

Satisfaction with Industry Superannuation Funds lead Retail Funds at top end

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Original article by Roy Morgan
Market Research Update – Page: Online : 28-Sep-18

New results from Roy Morgan shows that in the six months to August 2018, satisfaction with the financial performance of industry superannuation funds was 71.5% for all balances over $100,000. This compares with a satisfaction rating of 63.0% for retail funds with balances of at least $100,000. Over the last 12 months, industry funds had an overall gain in satisfaction of 3.9% points, ahead of the 0.9% point improvement for retail funds. The biggest improvement for industry funds was in the $700,000+ segment, where satisfaction improved by 6.4% points. Retail funds only showed improved satisfaction for balances below $250,000 and declining satisfaction for higher balances, where 64.5% of the superannuation funds are held. These are the latest findings from Roy Morgan’s "Satisfaction with Financial Performance of Superannuation in Australia Report", which is 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

TWU wants for-profit pirates out of super

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

The Transport Workers’ Union’s national secretary Michael Kaine contends that banks and for-profit funds should be removed from the superannuation system. His views are a little more drastic than those of Industry Super Australia CEO Bernie Dean, who does not think that funds owned by banks should be barred from operating in the super system, despite evidence presented about them to the banking royal commission. Kaine is disappointed that ISA, which is a lobby group for industry super funds, has suspended its anti-bank "fox in the henhouse" advertising campaign.

CORPORATES
TRANSPORT WORKERS’ UNION, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN LABOR PARTY

Union funds call a truce

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Original article by Joanna Mather
The Australian Financial Review – Page: 1 & 4 : 24-Sep-18

Industry Super Australia CEO Bernie Dean says the lobby group has "shelved indefinitely" its anti-bank "fox and henhouse" advertisements. Dean, who has succeeded David Whiteley, was responsible for creating the commercials, which were launched in March 2017. AustralianSuper CEO Ian Silk had been queried by the banking royal commission as to why it had helped to finance what the commission described as political advertising. Silk stated that it was in the best interest of AustralianSuper’s members. Dean says this was a reasonable comment.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIANSUPER PTY LTD, HOST-PLUS, ACTU, VICTORIAN WORKCOVER AUTHORITY, AUSTRALIA. PRODUCTIVITY COMMISSION

Supercharge economy, not giant vampire squid

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Original article by Terry McCrann
The Weekend Australian – Page: 38 : 1-Sep-18

When it was introduced in the early 1990s, it was hoped that compulsory superannuation would mean an end to people needing the old-aged pension. However, that ideal is no longer practical, due to a combination of low investment returns and the reduction of permanent and secure jobs. It has been suggested that it is now time to make Australia’s superannuation system a voluntary one instead. This would deliver a number of benefits, including an increase in real wages and a big jump in personal income tax revenues.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA. FUTURE FUND MANAGEMENT AGENCY