SUPERANNUATION – AUSTRALIA

Big banks grab third of $30b in super fees

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Original article by Jacob Greber
The Australian Financial Review – Page: 4 : 12-Oct-15

Research undertaken by Rainmaker on behalf of Industry Super Australia shows that Australia’s four major banks received about 33 per cent of the $A30bn paid in superannuation fees in 2014-15. Retail super funds and not-for-profit super funds accounted for about 50 per cent and 25 per cent of fees respectively. ISA CEO David Whiteley has expressed concern about the level of transparency in the super industry.

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, RAINMAKER INFORMATION SERVICES PTY LTD, AMP LIMITED – ASX AMP, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

Satisfaction with retail superannuation funds catching up to industry funds

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 30-Sep-15

A Roy Morgan Single Source survey has found that 59.6 per cent of Australians aged 14+ who are members of an industry superannuation fund were satisfied with their fund’s financial performance in the six months to August 2015. This compares with a 58.9 per cent satisfaction rating for members of retail super funds. However, retail funds have a higher satisfaction rating among people whose super balance exceeds $A700,000 (81.1 per cent compared with 77.6 per cent). Retail funds also have a marginally higher level of satisfaction than industry funds among fund members whose super balance is less than $A5,000 (48.9 per cent compared with 44.4 per cent).

CORPORATES
ROY MORGAN RESEARCH LIMITED

Morrison: GST hike could ease worker tax burden

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Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 5 : 30-Sep-15

Treasurer Scott Morrison has indicated that the Australian Government will ensure that there is no overall increase in the tax burden. He has told Sky News that income tax cuts would be implemented to offset any increase in other taxes, such as the GST. The corporate tax rate and superannuation tax breaks are also likely to be on the agenda when Prime Minister Malcolm Turnbull and key government ministers meet with business, union and community organisation leaders on 1 October 2015.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF INDUSTRY, INNOVATION AND SCIENCE, SKY NEWS, BUSINESS COUNCIL OF AUSTRALIA, ACTU, AUSTRALIAN COUNCIL OF SOCIAL SERVICE, COUNCIL ON THE AGEING, THE AUSTRALIAN INDUSTRY GROUP, KPMG AUSTRALIA PTY LTD, AUSTRALIAN BROADCASTING CORPORATION, AUSTRALIAN LABOR PARTY

Retiring CIO: new board rules will be good for super funds

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Original article by Sally Rose
The Australian Financial Review – Page: 19 : 21-Sep-15

Sunsuper will appoint Michael Traill and Andrew Fraser as independent directors. However, CEO Scott Hartley opposes the Australian Government’s proposal to require one-third of super fund’s boards – including the chairman – to be independent. In contrast, outgoing chief investment officer David Hartley favours the push for greater independence of directors. He notes that industry super funds with equal representation by employers and employees have tended deliver good returns.

CORPORATES
SUNSUPER PTY LTD, MACQUARIE GROUP LIMITED – ASX MQG, SOCIAL VENTURES AUSTRALIA LIMITED, QUEENSLAND. TREASURY, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED, FINANCIAL SERVICES COUNCIL, AUSTRALIAN CONSUMERS’ ASSOCIATION, QSUPER LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, AUSTRALIANSUPER PTY LTD, KPMG AUSTRALIA PTY LTD, INDUSTRY SUPER AUSTRALIA PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, AUSTRALIAN WORKERS’ UNION-FEDERATION OF INDUSTRIAL, MANUFACTURING AND ENGINEERING EMPLOYEES, TELSTRA SUPERANNUATION SCHEME

Super fund CEO ‘knew’ about leak

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Original article by Ewin Hannan
The Australian Financial Review – Page: 1 & 6 : 8-Sep-15

Cbus CEO David Atkin has been accused of being likely involved in the leaking of confidential information to the construction industry union. Jeremy Stoljar, counsel assisting the Royal Commission into Trade Union Governance & Corruption, also stated in a submission to royal commissioner Dyson Heydon that the relationship of Cbus with the Construction, Forestry, Mining & Energy Union was problematic and characterised by "serious cultural problems."

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

Calls to limit $21b super fees ‘gouge’

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Original article by Joanna Mather
The Australian Financial Review – Page: 7 : 28-Aug-15

National Seniors Australia has called for rules to force superannuation managers to cut back on fees, which amounted to $A21 billion a year. If funds did not voluntarily moderate fees, the regulator might have to step in, CEO Michael O’Neill said. Grattan Institute CEO John Daley told the National Reform Summit there was insufficient competition in the super industry to drive down fees. He has proposed a plan to save $A5 billion in fees which involves a tender process and a series of no-frills super products.

CORPORATES
NATIONAL SENIORS AUSTRALIA LIMITED, GRATTAN INSTITUTE, SUPERRATINGS PTY LTD, KPMG, AUSTRALIAN LABOR PARTY

New front opens in activists’ war

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Original article by
The Australian Financial Review – Page: 2 : 24-Aug-15

HESTA’s decision to sell its stake in Transfield Services is a sign of things to come. Australian-listed companies must be prepared to be challenged by environmental and social activists. Divestment campaigns are no longer limited to tobacco, gambling or weapons. Environmental and social issues are now also scrutinised by activists. For investors, this is a worrying development.

CORPORATES
TRANSFIELD SERVICES LIMITED – ASX TSE, HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED, ALLAN GRAY AUSTRALIA PTY LTD, WILSON SECURITY SERVICES, AUSTRALIAN NURSING FEDERATION, HEALTH SERVICES UNION OF AUSTRALIA, UNITED VOICE

Transfield dumped in human rights protest

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Original article by Sally Rose
The Australian Financial Review – Page: 3 : 19-Aug-15

Superannuation fund HESTA has sold its three per cent stake in Transfield Services because of concerns about risks associated with the group’s management of the offshore detention centres on Manus Island and Nauru. HESTA manages super savings of doctors, nurses, and other workers in the healthcare and community services sectors. Many of its members are concerned about reports of mismanagement in offshore detention centres.

CORPORATES
HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED, TRANSFIELD SERVICES LIMITED – ASX TSE, AUSTRALIAN COUNCIL OF SUPERANNUATION INVESTORS INCORPORATED

Senator urges crackdown on pushy SMSF spruikers

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Original article by Sally Rose
The Australian Financial Review – Page: 8 : 13-Aug-15

Senator John Williams, a member of the parliamentary committee on corporations and financial services, wants regulators to crack down on real estate agents who urge people to set up self-managed superannuation funds so they can borrow to buy investment properties. Williams will tell the Australian Securities & Investments Commission that the practice is dangerous and that real estate agents are not licenced to provide such advice.

CORPORATES
AUSTRALIA. JOINT STATUTORY COMMITTEE ON CORPORATIONS AND FINANCIAL SERVICES, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION, AMP LIMITED – ASX AMP, ELSTON PORTFOLIOS PTY LTD, FINDEX AUSTRALIA PTY LTD, FEDERAL COURT OF AUSTRALIA, 21ST CENTURY GROUP PTY LTD

Up to 80 funds ought to close: Chant West

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Original article by Sally Rose
The Australian Financial Review – Page: 6 : 5-Aug-15

Chant West’s Ian Fryer estimates that only about 40 of the 120-plus superannuation funds that offer default MySuper accounts are competitive. He notes that super funds with at least $A10bn in assets under management have much lower fees and deliver higher returns that their peers with less than $A5bn worth of assets under management. Some 89 super funds fit into the latter category, and Chant West believes the majority of them should either merge or be closed down.

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, TRANSPORT INDUSTRY SUPERNNUATION FUND, LESF PTY LTD, CONCEPT ONE PTY LTD, CLUBSUPER, SMARTSAVE SUPER, AMG UNIVERSAL SUPER, FINANCIAL SERVICES COUNCIL, AUSTRALIA. FAIR WORK COMMISSION, GRATTAN INSTITUTE, MINE WEALTH AND WELLBEING