SUPERANNUATION – AUSTRALIA

Human Super puts the focus on women

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Original article by Sally Patten
The Australian Financial Review – Page: 17 : 19-Jul-17

New superannuation fund Human Super will primarily target women in the 40-65 age group, and CEO Pascale Helyar-Moray says one of its aims is to help close the retirement savings gender gap. The fund will offer balanced and growth investment options, which will have fees of around one per cent and 1.8 per cent respectively. Human Super expects to attract about $A500,000 via its initial capital raising, which is slated to close on 19 July.

CORPORATES
HUMAN SUPER, SPACESHIP FINANCIAL SERVICES PTY LTD, GROW SUPER

Recycling of assets ‘getting through’ to US

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Original article by Jenny Wiggins
The Australian Financial Review – Page: 11 & 15 : 18-Jul-17

IFM Investors CEO Brett Himbury says the Australian superannuation investor is keen to be involved if the US gets serious about infrastructure asset recycling. Himbury recently visited the US, where he met with officials from a number of states with the potential to be involved in the sale of infrastructure assets in order to raise funds for new infrastructure investment. Goldman Sachs has previously noted that publicly-owned US toll roads alone are worth around $US120 billion.

CORPORATES
IFM INVESTORS PTY LTD, GOLDMAN SACHS AUSTRALIA PTY LTD, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, THE CARLYLE GROUP

Millennials ‘happy to pay more’ for super

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Original article by Alice Uribe
The Australian Financial Review – Page: 17 : 13-Jul-17

Association of Superannuation Funds of Australia CEO Martin Fahey says a super fund’s brand seems to be a higher priority for the Millennial generation than the fees they pay. Newer funds such as Spaceship and Grow Super have been popular with younger Australians, despite having fees that are higher than average. Fahey rejects suggestions that younger people are easily taken in by marketing hype, arguing that they are in fact "very sophisticated" consumers.

CORPORATES
THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, SPACESHIP FINANCIAL SERVICES PTY LTD, GROW SUPER, AUSTRALIAN BUREAU OF STATISTICS, ZUPER, MOBI SUPER, TYRO PAYMENTS, TIDSWELL FINANCIAL SERVICES LIMITED, RICE WARNER ACTUARIES PTY LTD, ATLASSIAN CORPORATION PLC

AusSuper optimistic on equity outlook

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Original article by Sally Patten
The Australian Financial Review – Page: 21 : 6-Jul-17

AustralianSuper has posted a return of 12.4 per cent for 2016-17, due to a strong performance by asset classes such as infrastructure, Australian shares and global shares. Chief investment officer Mark Delaney is upbeat about the outlook for sharemarkets in 2017-18, although he cautions that investors should expect lower returns than in 2016-17. He adds that share prices are unlikely to be significantly affected by the prospect of interest rate increases in countries such as the US.

CORPORATES
AUSTRALIANSUPER PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD, CHANT WEST FINANCIAL SERVICES PTY LTD

SMSFs trail bigger funds by up to 16pc

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Original article by Sally Patten
The Australian Financial Review – Page: 3 : 5-Jul-17

Data from Rainmaker shows that Australia’s self-managed superannuation funds achieved an average annual return of 4.6 per cent in the 10 years to May 2017. In contrast, mainstream super funds had an average annual return of 4.5 per cent. However, Rainmaker forecasts that SMSFs underperformed mainstream funds in the year to May 2017, with respective returns of 7.7 and 9.2 per cent. Rainmaker MD Christopher Page says SMSF trustees should focus on the return over 10 years rather than one year.

CORPORATES
RAINMAKER INFORMATION SERVICES PTY LTD, CHANT WEST FINANCIAL SERVICES PTY LTD, AUSTRALIAN TAXATION OFFICE

Government pushes for progress on group life insurance code

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Original article by Alice Uribe
The Australian Financial Review – Page: 15 : 4-Jul-17

The Australian life insurance sector’s new code of conduct took effect in the week ending 30 June 2017. The code will be enforced by an independent committee, but it does not come under a legal or regulatory body. As yet, the code does not cover life insurance within superannuation, something that Financial Services Minister Kelly O’Dwyer wants addressed sooner than later. O’Dwyer notes that a working group had been looking at the issue for six months, but with seemingly little progress.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AIA AUSTRALIA LIMITED, FINANCIAL SERVICES COUNCIL, FINANCIAL SERVICES OMBUDSMAN LIMITED

Super funds to return bumper 10.5pc

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Original article by Sally Patten
The Australian Financial Review – Page: 3 : 30-Jun-17

Chant West expects Australian superannuation funds to achieve an average return of 10.5 per cent for the 2016-17 financial year. Chant West director Warren Chant notes that major super funds have performed well for eight years, despite sustained economic and political uncertainty. Meanwhile, returns from industry super funds are forecast to exceed those of retail funds by about 0.7 per cent in 2016-17.

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD, HOST-PLUS, STANDARD AND POOR’S ASX 200 INDEX

Super funds slow to shake off ‘home bias’

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 35 : 28-Jun-17

A report by Vanguard shows that Australian superannuation funds continue to favour local shares over international equities. This is particularly so in the case of self-managed super funds. Australia’s dividend imputation tax system is a major contributor to this "home bias". However, Vanguard notes that the domestic sharemarket is much more heavily weighted toward banks and mining stocks, and investors can reduce portfolio volatility by increasing their exposure to international equities.

CORPORATES
VANGUARD INVESTMENTS AUSTRALIA LIMITED, PROVIDENCE FUNDS MANAGEMENT, STATE STREET GLOBAL ADVISORS AUSTRALIA LIMITED, BLACKROCK INVESTMENT MANAGEMENT (AUSTRALIA) LIMITED, AMP LIMITED – ASX AMP, COLONIAL FIRST STATE GLOBAL ASSET MANAGEMENT, IFM INVESTORS PTY LTD

Super bodies want wider ban on commissions

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Original article by Alice Uribe
The Australian Financial Review – Page: 17 : 27-Jun-17

The Department of the Treasury is conducting a review of Australia’s Future of Financial Advice regime. The Australian Institute of Superannuation Trustees and Industry Super Australia have used a joint submission to call for the ban on up-front and trailing commissions for life insurance sold within superannuation to be extended to all life insurance sales. They contend that commission-based remuneration structures serve to put the interests of financial planners ahead of their clients.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Advice not so super for retirees

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Original article by Michael Roddan
The Australian – Page: 21 : 6-Jun-17

A new online comparison tool is intended to make it easier for superannuation fund members to assess performance data from the Australian Prudential Regulation Authority. The tool will be launched by professional services firm KPMG on 6 June 2017. Meanwhile, a new report from KPMG has found that industry funds’ share of the super industry has risen to about 33 per cent since 2004, while the market share of retail funds has fallen from 43 per cent to 29 per cent.

CORPORATES
KPMG AUSTRALIA PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. PRODUCTIVITY COMMISSION, CHANT WEST FINANCIAL SERVICES PTY LTD, SUPERRATINGS PTY LTD, AUSTRALIANSUPER PTY LTD, AUSTRALIAN LABOR PARTY