SUPERANNUATION – AUSTRALIA

Satisfaction with retail superannuation funds now higher than industry funds

roymorgansocial Leave a comment

Original article by Roy Morgan Research
Market Research Update – Page: Online : 24-May-17

A Roy Morgan Single Source has found that Australians’ satisfaction with retail superannuation funds was 60.0% in the six months to March 2017, compared with 57.3% for industry funds. This is the second consecutive month that retail fund satisfaction has been higher than industry funds, which had held the lead for more than a decade. Retail funds lead industry funds in overall customer satisfaction, but more importantly, they only hold the lead for balances under $100,000. Over the last 12 months, nearly all of their gain in satisfaction has come from these lower-value members. In the all-important high value market with balances over $700,000, industry funds lead with 85.3% satisfaction, compared to 76.1% for retail funds. This is the segment where competition is greatest from self-managed super funds, which have shown a decline in satisfaction of 2.5% points over the last year (to 75.9%).

CORPORATES
ROY MORGAN RESEARCH LIMITED

Turnbull to face clash on housing

roymorgansocial Leave a comment

Original article by Simon Benson, David Uren, Rachel Baxendale, David Crowe
The Australian – Page: 1 & 4 : 13-Apr-17

A number of federal cabinet ministers and backbenchers support a proposal to allow first-home buyers to access their superannuation. They will lobby Prime Minister Malcolm Turnbull to consider adopting the initiative as part of the May 2017 Budget’s policy on housing affordability. However, Turnbull has reiterated his view that super should be solely used to provide an income stream in retirement. Chris Richardson of Deloitte Access Economics has expressed a similar opinion.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, DELOITTE ACCESS ECONOMICS PTY LTD, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, AUSTRALIAN LABOR PARTY, LIBERAL PARTY OF AUSTRALIA, NATIONAL PRESS CLUB (AUSTRALIA)

AustralianSuper, Hostplus blast rivals’ premium hikes

roymorgansocial Leave a comment

Original article by Michael Roddan
The Australian – Page: 18 : 23-Dec-16

Premiums for insurance policies arranged through superanuation funds are rising too fast. Rice Warner reports that the cost of death and total and permanent disability cover has risen 215 per cent on average since the beginning of 2013. IOOF wealth management manager Renato Mota says the rises were necessary because the rates were "unsustainably low".

CORPORATES
RICE WARNER ACTUARIES PTY LTD, IOOF HOLDINGS LIMITED – ASX IFL, AUSTRALIANSUPER PTY LTD, HOST-PLUS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, COMMINSURE, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Satisfaction with financial performance of superannuation steady in November but down over the year

roymorgansocial Leave a comment

Original article by Roy Morgan Research
Market Research Update – Page: Online : 16-Dec-16

A Roy Morgan Single Source survey has found that 58.4% of Australians aged 14+ who have superannuation were satisfied with their fund’s financial performance in the six months to November 2016. This was unchanged from October but down by 0.9% points over the year. The survey also shows that industry funds have retained the lead in satisfaction (59.2%) over retail funds (56.7%), but both have declined over the last 12 months, with industry funds down 1.2% points and retail funds down 1.4% points. Both score poorly in terms of the critically important "very satisfied" rating, at 17.7% for industry funds and 16% for retail funds. Self-managed funds have the highest satisfaction with 74.3% (down 1.7% points over the last year), followed by public-sector funds with 69.8% (up 1.8% points). Meanwhile, CARE Super had the highest satisfaction rating among the 18 largest super funds, at 75% (up 10.2% points year-on-year).

CORPORATES
ROY MORGAN RESEARCH LIMITED, CARE SUPER PTY LTD, STATEPLUS, QSUPER LIMITED, MERCER SUPER PTY LTD, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, AMP LIMITED – ASX AMP, ONEPATH AUSTRALIA LIMITED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Volatility hits fund earnings

roymorgansocial Leave a comment

Original article by Michael Roddan
The Australian – Page: 23 : 17-Nov-16

Data from Mercer shows that Australia’s median shares fund manager achieved a return of negative 3.1 per cent between August and October 2016. SuperRatings’ figures show that the median superannuation fund boasted a return of minus 0.7 per cent for the period, including a one per cent loss in October. Factors such as the outlook of inflation and uncertainty over the timing of a rate rise in the US weighed on financial markets in October.

CORPORATES
MERCER INVESTMENTS PTY LTD, SUPERRATINGS PTY LTD, UNITED STATES. FEDERAL RESERVE BOARD

Super funds $16b swoop on Ausgrid

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith, Sarah Thompson, Anthony Macdonald, Geoff Winestock, Jenny Wiggins
The Australian Financial Review – Page: 1 & 12 : 21-Oct-16

The New South Wales Government’s deal to sell a 50.4 per cent stake in Ausgrid to AustralianSuper and IFM Investors without undertaking a competitive auction process may come under scrutiny. Some observers believe that the Government could have gained a better price for the electric power distributor if other interested parties had been allowed to bid. The Government opted to accept the unsolicited $A16.189bn offer from the two superannuation groups. The fact that they are both Australian companies was seen to be attractive, as the deal did not need to be approved by the Foreign Investment Review Board.

CORPORATES
AUSGRID PTY LTD, AUSTRALIANSUPER PTY LTD, IFM INVESTORS PTY LTD, NEW SOUTH WALES. THE TREASURY, NEW SOUTH WALES. DEPT OF PREMIER AND CABINET, AUSTRALIA. FOREIGN INVESTMENT REVIEW BOARD, STATE GRID CORPORATION OF CHINA, CHEUNG KONG INFRASTRUCTURE HOLDINGS LIMITED, QIC LIMITED, HASTINGS FUNDS MANAGEMENT LIMITED, TRANSGRID, ENDEAVOUR ENERGY LIMITED, RBC CAPITAL MARKETS

Funds shun ASX in favour of cash, property

roymorgansocial Leave a comment

Original article by Vanessa Desloires
The Australian Financial Review – Page: 27 : 19-Oct-16

Tim Baker of Deutsche Bank forecasts that Australian superannuation funds will receive some $A65bn worth of mandatory contributions in 2016-17. Discretionary contributions are expected to be around $A15bn, compared with the annual average of $A20bn. Meanwhile, Baker notes that super funds are scaling back their equity holdings and increasing their exposure to investment options such as cash, infrastructure assets and commercial property.

CORPORATES
DEUTSCHE BANK AG, AUSTRALIAN UNITY INVESTMENTS, UNISUPER LIMITED, AUSGRID PTY LTD, PORT OF MELBOURNE

Australians with industry superannuation funds are more satisfied than those with retail funds

roymorgansocial Leave a comment

Original article by Roy Morgan Research
Market Research Update – Page: Online : 14-Oct-16

A Roy Morgan Single Source survey has found that 59.7 per cent of Australians aged 14+ with an industry superannuation fund were satisfied with the financial performance of their fund in the six months to August 2016. This compares with 57 per cent of people with retail super funds. Members of industry funds have had a higher level of satisfaction than retail funds every month since 2007. The survey also shows that among people with a super balance of more than $A700,000, industry funds lead with 83.3 per cent satisfaction, compared with 80.5 per cent for retail funds. However, for those holding less than $A5,000 in superannuation, retail funds have marginally higher satisfaction than industry funds (48.0 per cent compared with 47.5 per cent).

CORPORATES
ROY MORGAN RESEARCH LIMITED

Government faces delay on ‘urgent’ cuts

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 5 : 30-Aug-16

The Australian Government will introduce 26 separate bills to Parliament in coming days, although its "omnibus" and superanuation reform bills will be delayed. The Australian Labor Party was not given a copy of the omnibus bill at its caucus meeting on 29 August 2016, while some Labor MPs oppose several of the proposed measures to reduce government spending. Meanwhile, the Government is yet to reach consensus within its own ranks regarding the lifetime cap on non-concessional super contributions.

CORPORATES
AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. PARLIAMENTARY BUDGET OFFICE, COUNCIL ON THE AGEING, AUSTRALIAN GREENS, AUSTRALIAN RENEWABLE ENERGY AGENCY, VICTORIA. COUNTRY FIRE AUTHORITY, UNITED FIREFIGHTERS’ UNION OF AUSTRALIA, AUSTRALIAN BUILDING AND CONSTRUCTION COMMISSION, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

SMSFs head for managed funds in volatile times

roymorgansocial Leave a comment

Original article by Sally Patten
The Australian Financial Review – Page: 29 : 12-Aug-16

A survey by Investment Trends and Vanguard shows that 17 per cent of Australia’s self-managed superannuation funds expect to increase their exposure to managed funds in the next 12 months, compared with about 14 per cent in 2015. Meanwhile, the proportion of SMSF trustees who intend to invest in blue-chip stocks has fallen from 65 per cent to 55 per cent. There has also been a decline in investment expectations regarding exchanged traded funds and high-yield shares.

CORPORATES
INVESTMENT TRENDS PTY LTD, VANGUARD INVESTMENTS AUSTRALIA LIMITED