SUPERANNUATION – AUSTRALIA

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

ANZ offers women free super advice

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Original article by Ruth Liew
The Australian Financial Review – Page: 3 : 29-Jul-15

It is estimated that Australian women who work full-time are paid about $A15,000 less each year than their male peers. Women also tend to have about 50 per cent less in superannuation upon retirement. The ANZ Bank has launched initiatives aimed at addressing this imbalance. Female customers whose super balance is less than $A50,000 will be offered free financial advice. ANZ’s female employees will also be paid an additional $A500 in super each year.

CORPORATES
AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, QUEENSLAND. DEPT OF THE PREMIER AND CABINET

SMSFs opt for better returns

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Original article by Kate Cowling
The Australian Financial Review – Page: 6 : 28-Jul-15

A report by the SMSF Association and nabtrade shows that 15 per cent of self-managed superannuation fund members opted to outsource the investment process in 2014. This compares with just 7.3 per cent in 2012. Almost 40 per cent of SMSF investors chose to handle investment decisions themselves in 2014, which has not changed much since 2012. The report also shows that falling interest rates have prompted many SMSF members to increase their exposure to assets such as shares.

CORPORATES
SELF-MANAGED SUPER FUND ASSOCIATION OF AUSTRALIA PTY LTD, NABTRADE

Selfie investors snub cash, shares

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Original article by Kate Cowling
The Australian Financial Review – Page: 22 : 22-Jul-15

The investment portfolios of Australian self-managed superannuation funds (SMSFs) have usually been focused on assets such as local shares, cash and term deposits. However, AMP Capital and BlackRock are among the groups that have noted greater interest in their absolute return funds among SMSFs. Hasan Tevfik of Credit Suisse says SMSFs often change their asset allocations in order to boost income, although he adds that this typically means increased exposure to shares.

CORPORATES
AMP CAPITAL INVESTORS LIMITED, BLACKROCK INVESTMENT MANAGEMENT (AUSTRALIA) LIMITED, CREDIT SUISSE (AUSTRALIA) LIMITED, TOWERS WATSON, PERPETUAL PRIVATE CLIENTS, AUSTRALIAN TAXATION OFFICE

QSuper’s skew strikes right balance

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Original article by Sally Rose
The Australian Financial Review – Page: 14 : 20-Jul-15

Data from Chant West shows that QSuper’s balanced option achieved a return of 12.3 per cent for 2014-15, topping the performance charts. Brad Holzberger, the superannuation fund’s chief investment officer, attributes QSuper’s performance to its portfolio’s high exposure to long-term sovereign bonds and its lower allocation toward domestic shares. The MTAA My AutoSuper fund delivered a return of 11.7 per cent, while all of the balanced funds in the top 10 achieved a double-digit return.

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD, QSUPER LIMITED, MOTOR TRADES ASSOCIATION OF AUSTRALIA SUPERANNUATION FUND PTY LTD, STATEWIDE SUPERANNUATION PTY LTD, AMP LIMITED – ASX AMP, VICSUPER PTY LTD, UNISUPER LIMITED, HOST-PLUS, INTRUST SUPER FUND, MLC LIMITED, AUSTRALIANSUPER PTY LTD, REST SUPER PTY LTD

Three in a row for AustralianSuper

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

Chant West expects balanced superannuation funds to achieve a median return of 9.5 per cent for 2014-15. Meanwhile, AustralianSuper has reported a return of 10.9 for its balanced option in 2014-15, while its combined return for the last three financial years was 46 per cent. Deputy CEO Mark Delaney says the sharp fall in the value of the Australian dollar contributed to the performance of the group’s balanced fund in 2014-15.

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD, AUSTRALIANSUPER PTY LTD, TOWERS WATSON, RICE WARNER ACTUARIES PTY LTD, FRONTIER ADVISORS PTY LTD

Aldi in great shape for Coles, Woolies battle

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Original article by Sue Mitchell
The Australian Financial Review – Page: 11 & 14 : 14-Jul-15

Woolworths continues to have the highest pre-tax profit margin among Australian grocery retailers, at 7.1 per cent. However, Aldi boasted a profit margin of 5.2 per cent in 2013, according to its submission to a Senate tax inquiry. This compares with a profit margin of just 4.3 per cent for Coles. Craig Woolford of Citigroup believes that Aldi will gain more market share at the expense of its two main rivals, while Craig Young of Nikko Asset Management doubts that Aldi will pursue a grocery price war.

CORPORATES
ALDI STORES SUPERMARKETS PTY LTD, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, CITIGROUP PTY LTD, NIKKO ASSET MANAGEMENT GROUP, DEUTSCHE BANK AG, WESFARMERS LIMITED – ASX WES, AUSTRALIAN LABOR PARTY, AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION

Most seek advice when switching superannuation provider but gaps remain

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Original article by Roy Morgan Research
Market Research Update – Page: Online : 9-Jul-15

A new Roy Morgan Research report, "Superannuation and Wealth Management in Australia", examines all aspects of consumer financial behaviour, including extensive coverage of super. It shows that 72 per cent of Australians aged 14+ who switched super provider in the year to December 2014 sought some sort of advice when doing so, compared with 68.8 per cent in 2010. The number of people who received such advice from financial planners/advisers has risen from 20.5 per cent to 29.9 per cent during the period. Likewise, the number of people who went directly to a financial institution for advice has risen from six per cent to 9.3 per cent.

CORPORATES
ROY MORGAN RESEARCH LIMITED

No evidence retirees are wasting super

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Original article by Jacob Greber
The Australian Financial Review – Page: 3 : 7-Jul-15

A Productivity Commission report estimates that retirees’ superannuation balance would be bolstered by at least 10 per cent if they were not able to access their super until the age of 65. The report also refutes the widely-held view that members of the Baby Boom generation are reorganising their finances or spending their super payout on expensive holidays in order to qualify for the age pension.

CORPORATES
AUSTRALIA. PRODUCTIVITY COMMISSION, AUSTRALIAN LABOR PARTY, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

RBA tool blunted: ANZ

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Original article by Jonathan Shapiro
The Australian Financial Review – Page: 21 : 22-Jun-15

The Reserve Bank of Australia’s policy of reducing interest rates was intended to encourage consumers to spend. However, ANZ Bank economists have concluded that people nearing retirement are in fact saving rather than spending. They also note that older Australians are also saving more as a result of uncertainty concerning superannuation policy.

CORPORATES
RESERVE BANK OF AUSTRALIA, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ