SUPERANNUATION – AUSTRALIA

Lower rates help stocks but won’t spur growth

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Original article by David Rogers
The Australian – Page: 31 : 4-Aug-16

Australia’s S&P/ASX 200 gained 6.3 per cent in July 2016, but it has shed 2.2 per cent since the Reserve Bank reduced the cash rate to a record low on 2 August. However, equities are likely to benefit from a likely trend for self-managed superannuation funds to reduce their exposure to cash as returns from such investments fall. The outlook for interest rates in Australia and abroad is also likely to ensure that price-earnings ratios remain elevated for some time.

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, RESERVE BANK OF AUSTRALIA, UNITED STATES. FEDERAL RESERVE BOARD, CREDIT SUISSE (AUSTRALIA) LIMITED

Super-size me: NAB banks on giant new fund

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Original article by Michael Bennet
The Australian – Page: 23 : 14-Jul-16

National Australia Bank’s MLC Super Fund has become the nation’s second-largest superannuation fund and the biggest retail fund after five separate funds were amalgamated. The enlarged MLC Super boasts some $A70bn worth of funds under management, and NAB has indicated that rationalising its super funds is likely to result in lower fees for members. The consolidation of its super funds will also enable NAB to separate its super and investment businesses from its life insurance arm, in which a controlling stake has been sold to Nippon Life.

CORPORATES
NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, MLC LIMITED, NIPPON LIFE INSURANCE COMPANY LIMITED, AUSTRALIANSUPER PTY LTD

Retirees urged to tap into home equity

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Original article by Sally Rose
The Australian Financial Review – Page: 17 : 13-Jul-16

AustralianSuper CEO Ian Silk says the superannuation fund may seek to offer a broader range of retirement income products in coming years. This could include home equity release products, which allow homeowners to capitalise on the value of their home without the risks associated with reverse mortgages. Silk concedes that there are significant problems with some retirement income products that are currently available, and says the industry must work hard to address the issue.

CORPORATES
AUSTRALIANSUPER PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Satisfaction with performance of industry super funds increases their lead over retail funds

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 8-Jun-16

A Roy Morgan Single Source survey has found that 60.6 per cent of members of Australian industry superannuation funds were satisfied with their fund’s financial performance in the six months to April 2016. This compares with 56.9 per cent of members of retail super funds. Meanwhile, industry funds have increased their satisfaction level by 1.5 per cent over the last 12 month, while retail funds showed a small decline of 0.1 per cent. The survey also shows that satisfaction with super increases with the amount held, with both industry and retail funds scoring best among people with balances of more than $A700,000.

CORPORATES
ROY MORGAN RESEARCH LIMITED, CATHOLIC SUPERANNUATION AND RETIREMENT FUND, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, STATEWIDE SUPERANNUATION PTY LTD, AUSTRALIANSUPER PTY LTD, MOTOR TRADES ASSOCIATION OF AUSTRALIA SUPERANNUATION FUND PTY LTD, REST SUPER PTY LTD

Vanguard sees lower returns

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Original article by Sally Patten
The Australian Financial Review – Page: 8 : 11-Mar-16

Vanguard Group CEO and chairman Bill McNabb is bearish about the outlook for global investment returns over the next decade. He expects returns to be around two per cent below the long-term average over this period, although he anticipates a subsequent upturn. Meanwhile, McNabb says there should be greater transparency regarding Australian superannuation funds’, while he argues that consolidation in the industry could also be used to put downward pressure on fees.

CORPORATES
THE VANGUARD GROUP INCORPORATED

Super funds push for more ESG disclosure

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Original article by Ruth Liew
The Australian Financial Review – Page: 22 : 3-Mar-16

Australian-listed companies are under pressure to report more thoroughly their environmental, social and governance (ESG) practices. On 2 March 2016, the Australian Council of Superannuation Investors (ACSI) and the Financial Services Council launched a new guide on corporate disclosure of ESG information to shareholders. Research by ACSI suggests that the ESG disclosure practices of ASX 200 companies are inadequate.

CORPORATES
FINANCIAL SERVICES COUNCIL, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ

Long-term nature of superannuation has negative impact on engagement

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 20-Jan-16

A Roy Morgan Single Source survey has found that 30.3 per cent of Australians aged 18 to 64 consider retirement too far away to plan for. The survey, which was carried out in the year to October 2015, also shows that70 per cent of Australians up to the age of 21 feel that retirement is too far away to plan, compared with 31.4 per cent of those in the 35-39 age group and 16.6 per cent of those in the critical pre-retirement years of 50 to 54. Meanwhile, 38 per cent of Australians aged 18 to 64 agree that they should plan for their financial future but procrastinate and give other things priority.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Over $35 billion in superannuation switched but nearly one third of switchers didn’t get any advice

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 6-Jan-16

A Roy Morgan Single Source (Australia) survey has found that 3.2 per cent of superannuation products (or more than $A35bn) were switched annually in the three years to November 2015. The survey also shows that 26.9 per cent of those switching their superannuation got advice from a financial planner or advisor, 18.2 per cent received advice from their employer and 11.8 per cent were advised by a friend or family. However, 31 per cent of those switching funds did not receive any advice. Meanwhile, 37.2 per cent of those switching to an industry fund did not get any advice, while 42 per cent of those switching to a retail fund received advice from a professional advisor.

CORPORATES
ROY MORGAN RESEARCH LIMITED

Cbus workers charged over CFMEU leak

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Original article by Ewin Hannan, Nick McKenzie, Richard Baker
The Australian Financial Review – Page: 5 : 1-Dec-15

Former Cbus employees Maria Butera and Lisa Zanatta have been charged with giving misleading evidence to the Royal Commission into Trade Union Governance and Corruption. They allegedly leaked details of the superannuation fund’s members to Brian Parker, the New South Wales secretary of the Construction, Forestry, Mining & Energy Union. Parker may also be charged.

CORPORATES
CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND, LIS-CON HOLDINGS PTY LTD, MELBOURNE MAGISTRATES’ COURT, AUSTRALIAN FEDERAL POLICE, AUSTRALIA. ROYAL COMMISSION INTO TRADE UNION GOVERNANCE AND CORRUPTION

Diversify call to super funds

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Original article by Joyce Moullakis
The Australian Financial Review – Page: 17 : 19-Oct-15

Australian superannuation funds are forecast to have some $US2.5trn ($A3.4trn) worth of assets under management by 2020, compared with $A2bn at the end of March 2015. Itay Tuchman of Citigroup says the strong growth in assets under management in coming years will require super funds to further expand the range of international asset classes in which they invest. Meanwhile, Tuchman says Westpac’s move to increase its mortgage interest rates will strengthen the case for a further reduction in the cash rate.

CORPORATES
CITIGROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, RESERVE BANK OF AUSTRALIA, JP MORGAN AUSTRALIA LIMITED, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, AUSTRALIANSUPER PTY LTD, IFM INVESTORS PTY LTD, INDIANA TOLL ROAD CONCESSION COMPANY, CANADA PENSION PLAN INVESTMENT BOARD