SUPERANNUATION – AUSTRALIA

Pure play coal just doesn’t make the cut for UniSuper

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Original article by Ben Potter
The Australian Financial Review – Page: 15 & 20 : 5-Jul-18

UniSuper’s Talieh Williams says the superannuation fund takes into account a range of factors when deciding whether to invest in a stock. UniSuper has relatively little exposure to the coal sector, and pure-play coal miners in particular, which she attributes to the super fund’s rigorous investment processes. Meanwhile, QSuper says it invests across the S&P/ASX 200 Index and therefore does have exposure to pure-play coal producers. Yancoal Australia recently blamed fund managers’ lack of interest in a capital raising for its proposal for a dual listing in Hong Kong.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, UNISUPER LIMITED, QSUPER LIMITED, STANDARD AND POOR’S ASX 200 INDEX, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED, BHP BILLITON LIMITED – ASX BHP, RIO TINTO LIMITED – ASX RIO, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, WHITEHAVEN COAL LIMITED – ASX WHC, NEW HOPE CORPORATION LIMITED – ASX NHC, CLIMATE ACTION 100+, AGL ENERGY LIMITED – ASX AGL, ORIGIN ENERGY LIMITED – ASX ORG, ADELAIDE BRIGHTON LIMITED – ASX ABC, BORAL LIMITED – ASX BLD, SANTOS LIMITED – ASX STO, QANTAS AIRWAYS LIMITED – ASX QAN, BLUESCOPE STEEL LIMITED – ASX BSL, WOOLWORTHS GROUP LIMITED – ASX WOW, WOODSIDE PETROLEUM LIMITED – ASX WPL

Superannuation of female intending retirees still lags

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Original article by Roy Morgan
Market Research Update – Page: Online : 2-Jul-18

A Roy Morgan Single Source survey, which was carried out in the year to April 2018, shows that an estimated 392,000 Australians intend to retire in the next 12 months. However, the average superannuation held by women who intend to retire in the next 12 months is $177,000 or equal to only 57.3% of the male average ($309,000). Meanwhile, the average superannuation held by female intending retirees in 2008 was $79,000 or only 55.2% of the male average of $143,000. The survey is based on in-depth personal interviews conducted face-to-face with over 50,000 Australians per annum in their own home, including over 2,200 with people who intend to retire in the next 12 months.

CORPORATES
ROY MORGAN LIMITED

DIY super is built on dodgy advice

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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

Industry Funds satisfy top investors

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

A Roy Morgan Single Source survey has found that industry superannuation funds had the highest level of customer satisfaction among Australians aged +14 with account balances of more than $5,000 in the six months to April 2018. Retail funds showed the highest relative performance among funds with less than $5,000, although these accounts only represent 0.1% of the monetary value of the super market. Industry funds also had the highest satisfaction among members with account balances of $700,000 or more. Among the top 15 funds, QSuper has the highest level of satisfaction (72.3%), followed by Unisuper (69.1%) and VicSuper (67.9%).

CORPORATES
ROY MORGAN LIMITED, QSUPER LIMITED, UNISUPER LIMITED, VICSUPER PTY LTD

Senator wants end to unions’ tax-free status

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Original article by Tom McIlroy
The Australian Financial Review – Page: 9 : 18-Jun-18

Coalition senator Amanda Stoker says unions should no longer be exempt from paying tax, as they have a competitive advantage in business areas where they operate. She adds that about two million workers do not have choice of superannuation fund because they are required to join a union-backed industry fund. Stoker also notes that many workers are also restricted to joining one union, and unions often exploit this monopoly in enterprise bargaining negotiations. Stoker will use her maiden speech in Parliament to advocate reform.

CORPORATES
LIBERAL-NATIONAL PARTY OF QUEENSLAND, CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, HIGH COURT OF AUSTRALIA, AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY

Labor open to strip super from Fair Work

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Original article by Joanna Mather, Phillip Coorey
The Australian Financial Review – Page: 1 & 4 : 31-May-18

Sources have suggested that the Australian Labor Party will continue to oppose a move to require the majority of superannuation funds’ board members to be independent. However, shadow treasurer Chris Bowen is said to be willing to support the Productivity Commission’s recommendation to shift responsibility for selecting default super funds from the Fair Work Commission to an expert panel. Meanwhile, the PC’s deputy chair Karen Chester has downplayed concerns that the super industry would be dominated by the 10 funds on the expert panel’s list.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. FAIR WORK COMMISSION, AUSTRALIA. PRODUCTIVITY COMMISSION, ACTU, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, FINANCIAL SERVICES COUNCIL

AMP chair to be Hayne’s biggest scalp

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Original article by Jennifer Hewett, Alice Uribe
The Australian Financial Review – Page: 1 & 19 : 30-Apr-18

Institutional investors have warned that they will vote against the re-election of three AMP directors at the upcoming AGM, even if chairman Catherine Brenner resigns. She is widely tipped to step down in the wake of a board meeting on 29 April. CEO Craig Meller recently resigned after misconduct at AMP was exposed by the banking royal commission. The revelations have weighed on AMP’s share price, which has fallen to its lowest level in more than five years.

CORPORATES
AMP LIMITED – ASX AMP, AUSTRALIA. ROYAL COMMISSION INTO MISCONDUCT IN THE BANKING, SUPERANNUATION AND FINANCIAL SERVICES INDUSTRY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, FIRST SUPER PTY LTD, LGSS PTY LTD, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, REST SUPER PTY LTD, HOST-PLUS, AUSTRALIAN SHAREHOLDERS’ ASSOCIATION, CGI GLASS LEWIS PTY LTD, BELL POTTER SECURITIES LIMITED, COCA-COLA AMATIL LIMITED – ASX CCL, BORAL LIMITED – ASX BLD, BRAMBLES LIMITED – ASX BXB

Tasplan, CARE Super and IOOF lead monthly super satisfaction

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Original article by Roy Morgan
Market Research Update – Page: Online : 23-Apr-18

The Roy Morgan Superannuation Satisfaction Report shows that average customer satisfaction with Australian superannuation funds was 61.1% in the six months to March 2018. This is on par with the average satisfaction level for Industry funds. Retail funds sit below the average at 60.1%, and satisfaction with major retail funds (consisting of ANZ, CBA, NAB and Westpac) is 58.7%. Average satisfaction with Public Sector funds and Self-Managed Superannuation funds is 72.6% and 73% respectively. Meanwhile, Tasplan has the highest satisfaction level of all superannuation funds, at 74.6%, ahead of CARE Super (71%) and retail fund IOOF (69.9%).

CORPORATES
ROY MORGAN LIMITED, TASPLAN LIMITED, CARE SUPER PTY LTD, IOOF HOLDINGS LIMITED – ASX IFL, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Shorten defends super cash grab

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Original article by Greg Brown
The Australian – Page: 4 : 19-Apr-18

Opposition Leader Bill Shorten has responded to criticism of a proposal to abolish cash refunds for excess dividend imputation credits. He says claims that the policy could cost retail superannuation funds more than $3.75bn over 10 years are "rubbish", and he has refuted suggestions that the policy will hit pensioners. Shorten adds that taxpayers’ funds should be spend on infrastructure rather than giving cash refunds to people who do not pay tax.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY

Labor’s $3.75bn savings grab

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Original article by Simon Benson
The Australian – Page: 1 & 4 : 18-Apr-18

New data suggests that the Federal Opposition’s plan to abolish cash refunds for excess dividend imputation credits would affect about 2.6 million accounts of superannuation funds that are regulated by the Australian Prudential Regulation Authority. The Australian Taxation Office data shows that some 2,013 of the 2,603 APRA-regulated funds claimed such refunds in 2015-16, which totalled almost $A309m. This implies that Labor’s policy would cost such funds around $A3.75b over 10 years. Labor has claimed that only 10 per cent of APRA-regulated funds would be affected by the policy.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. DEPT OF THE TREASURY, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, INDUSTRY SUPER AUSTRALIA PTY LTD