SUPERANNUATION – AUSTRALIA

Strong super gains tipped for 2023

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Original article by Louise Brannelly
The Australian – Page: 17 : 24-May-23

Data from Chant West shows that the median growth superannuation fund posted a return of f 1.2 per cent in April and 8.1 per cent for the first 10 months of 2022-23. Mano Mohankumar of Chant West shows that returns have been flat so far in May, but growth funds are still on track to achieve a full-year return of around eight per cent. This compares with a loss of 3.3 per cent in 2021-22. SuperRatings’ executive director Kirby Rappell is also upbeat about the sector’s performance in 2022-23.

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD, SUPERRATINGS PTY LTD

Super funds post 1.1pc return amid volatility

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Original article by Paulina Duran
The Australian – Page: 15 : 21-Apr-23

Data from Chant West shows that the median growth superannuation fund gained 1.1 per cent in March, and 6.9 per cent in the first nine months of 2022-23. The S&P/ASX 200 shed 0.2 per cent in March, but this was offset by strong returns from international shares, as well as Australian and international bonds. Mano Mohankumar of Chant West notes that the median growth fund has gained 29 per cent since the financial market meltdown in March 2020, at the onset of the global pandemic.

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD

Women are (slowly) closing the superannuation gap

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Original article by Roy Morgan
Market Research Update – Page: Online : 19-Apr-23

New research from Roy Morgan shows that over the last decade, women have been closing the ‘gender superannuation gap’ on men both for ownership levels and average balances. In 2012 only 66.2% of females had super, compared with 74.8% of males – a gap of 8.6% points. The gap has since been reduced to 3.9% points, with 70.9% of females now having super compared with 74.8% of males. Meanwhile, the average super balance for females has grown faster than males since 2012. Over the last decade the average super balance of females grew by 38% (to $154k), compared to males with an increase of 26% (to $216k). These are the latest results from Roy Morgan’s Single Source survey, which is based on in-depth personal interviews conducted with over 500,000 Australians over the last decade, including over 300,000 with superannuation.

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ROY MORGAN LIMITED

Super fund satisfaction drops to 66.6% in February 2023 – down 5.4% points from record high in January 2022

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Original article by Roy Morgan
Market Research Update – Page: Online : 22-Mar-23

New data from Roy Morgan’s Superannuation Satisfaction Report shows an overall super fund satisfaction rating of 66.6% in February 2023. This is 5.4% lower than the record high reached just over a year ago in January 2022 (72.0%). Despite the decrease over the last year superannuation satisfaction is still higher than the long-term average of 57.9% from 2007-2023, and also higher than at any time prior to the pandemic years of 2021-22 when the measure was at record highs. However, superannuation satisfaction is now at its lowest since December 2020 (64.8%). Customer satisfaction for Industry Funds has declined by 6.3% points since January 2022 to 67.9% – the largest decline for any of the super fund categories; the customer satisfaction of Retail Funds has declined by 5.6% points to 61.3%. Unisuper and HESTA now have the highest customer satisfaction ratings among Industry Funds, ahead of AustralianSuper and HOSTPLUS. The highest-placed Retail Super Fund is Macquarie, followed by MLC, OnePath and Colonial First State. The report’s findings are from Roy Morgan Single Source, Australia’s most trusted consumer survey, compiled by in-depth interviews with over 60,000 Australians each year.

CORPORATES
ROY MORGAN LIMITED

Tax the rich to pay for parental leave contributions: HESTA

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Original article by Lucy Dean, Tom McIlroy
The Australian Financial Review – Page: 6 : 1-Feb-23

Industry superannuation fund HESTA has used its pre-Budget submission to urge the federal government to cap super fund balances at $5m. CEO Debby Blakey notes that balances of around $5m receive about $70,000 worth of tax concessions annually, which is more than many of HESTA’s members earn in a year. HESTA has also called for the threshold at which high-income earners pay more tax on super to be lowered from $250,000 a year to $180,000; Blakey says this would allow more money to be directed to the Commonwealth Parental Leave Pay scheme. She contends that Australia’s superannuation system has a "persistent gender blind spot" that must be addressed. Some 80 per cent of HESTA’s members are women.

CORPORATES
HEALTH EMPLOYEES’ SUPERANNUATION TRUST AUSTRALIA LIMITED

Labor aims at $5m super stockpiles

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Original article by Michael Read
The Australian Financial Review – Page: 1 & 4 : 19-Jan-23

Assistant Treasurer Stephen Jones says the federal government will legislate an objective for superannuation. However, Labor’s legislated purpose for super will be narrower than the industry would prefer; super funds want it to include concepts such as ‘comfort in retirement’ and ‘preservation’, which critics argue would enshrine tax breaks and prevent people from making withdrawals to buy a home. Labor may also take action to cap super balances at $2m. It is estimated that tax concessions for people with super balances of more than $5m costs the budget about $1.5bn a year.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Superannuation fund returns go negative in September as markets weaken

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Original article by Rod Myer
The New Daily – Page: Online : 18-Oct-22

Data from SuperRatings shows that the average balanced superannuation fund lost 3.1 per cent in value during September and 5.7 per cent in the year to September. Factors such as rising inflation and interest rates have weighed on super returns in 2022. SuperRatings’ executive director Kirby Rappell anticipates a challenging calendar year for returns in the sector. However, Rappell emphasises that super is a long-term investment, and he notes that balanced funds have returned an average of at least seven per cent over time.

CORPORATES
SUPERRATINGS PTY LTD

Super contributions surge past $63bn

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Original article by Glenda Korporaal
The Australian – Page: 14 : 24-Aug-22

Data from the Australian Prudential Regulation Authority shows that net contributions to superannuation funds increased by 88 per cent in 2021-22. Net contributions exceeded $63bn, with inflows of $146.5bn being partially offset by some $85.8bn worth of benefits being paid out to members. Employer contributions rose by 10.2 per cent to $108.6bn, with the super guarantee rising by 0.5 per cent to 9.5 per cent on 1 July 2021. Personal contributions increased by about 32.7 per cent, to $35.3bn. The total value of super funds’ assets fell from $3.38trn to $3.31trn during the financial year.

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AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

News site losing millions but increasing in value

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Original article by John Rolfe
The Daily Telegraph – Page: Online : 2-Nov-21

The financial accounts of Industry Super Holdings shows that The New Daily lost $2.7m in 2020-21. The superannuation industry-backed news website has not booked a profit since it was founded nearly a decade ago, but its book value has been upgraded from zero to $4.4m following a review by an independent valuation expert. Liberal senator Andrew Bragg has questioned why super fund members are continuing to fund The New Daily, and reiterated his view that it is a "propaganda outfit" for union-linked super funds.

CORPORATES
THE NEW DAILY, INDUSTRY SUPER HOLDINGS PTY LTD, LIBERAL PARTY OF AUSTRALIA

Swan as new Cbus chairman an ‘insult to workers’: CFMEU

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Original article by David Marin-Guzman
The Australian Financial Review – Page: 2 : 8-Sep-21

The Construction, Forestry, Maritime, Mining & Energy Union has described the appointment of former Labor minister Wayne Swan as chairman of industry superannuation fund Cbus as the "height of hypocrisy". The CFMMEU says the appointment is an "insult to construction workers", given Swan’s role in maintaining the building industry watchdog during his tenure as federal treasurer and deputy prime minister. The union has also suggested that there is a conflict of interests due to Swan’s role as Labor’s national president.

CORPORATES
CONSTRUCTION, FORESTRY, MARITIME, MINING AND ENERGY UNION OF AUSTRALIA, CONSTRUCTION AND BUILDING UNIONS’ SUPERANNUATION FUND