SUPERANNUATION – AUSTRALIA

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.

CORPORATES
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

Fess-up time: top-performing super funds put duds to shame

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Original article by Cliona O’Dowd
The Australian – Page: 17 : 2-Sep-21

The superannuation performance test data shows that Active Super was the best default MySuper fund over a seven-year period, with an average return of 9.46 per cent. It is followed by AustralianSuper (9.44 per cent) and Hostplus (9.33 per cent return). The lowest average return for the 10 best performing funds was 8.75 per cent. In contrast, EISS had the lowest average return among the 10 worst-performing funds, at just six per cent.

CORPORATES
ACTIVE SUPER, AUSTRALIANSUPER PTY LTD, HOST-PLUS, EISS SUPER

Super funds post strong July gains after big year

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Original article by Cliona O’Dowd
The Australian – Page: 17 : 19-Aug-21

Data from Chant West shows that the median growth superannuation fund gained 1.1 per cent in July, matching the rise in the Australian sharemarket for the period. This follows a return of 18 per cent for 2020-21, and the median growth fund has now gained about 27 per cent since reaching a coronavirus-induced low in late March 2020. International shares gained 1.7 per cent in hedged terms during July, while emerging markets shares fell 4.7 per cent in unhedged terms.

CORPORATES
CHANT WEST FINANCIAL SERVICES PTY LTD

Super fund satisfaction near record highs in June with HESTA the top fund ahead of Cbus and Unisuper

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Original article by Roy Morgan
Market Research Update – Page: Online : 28-Jul-21

New data from Roy Morgan’s Superannuation Satisfaction Report shows an overall super fund satisfaction rating of 71.7% in June 2021 – an increase of 8.6% points from June 2020, and up 6.9% points over the last six months. The rating for June is just below the record high reached a month ago and continues a series of excellent customer satisfaction ratings over the first half of 2021 as the Australian economy recovered and Australian stock markets reached new record highs. HESTA has the highest customer satisfaction rating among Industry Funds, ahead of Cbus, UniSuper, AustralianSuper and Catholic Super. The highest placed Retail Super Fund is OnePath, followed by Colonial First State, MLC and ASGARD. The strong performance of the stock market during the first half of 2021 has helped drive customer satisfaction in Industry Funds to a new record high in June 2021 of 72.3%, up 8.2% points on a year ago. Customer satisfaction is also near record highs for Public Sector Funds at 79.7% in June (up 7.6% points on a year ago), and satisfaction Retail Funds is at 67.8% (up 9.7% points on a year ago). However, the highest customer satisfaction is again for Self-Managed Funds at 80.6%, which have experienced the largest increase of 10.7% points from a year ago. The report’s findings are from Roy Morgan Single Source, Australia’s most trusted consumer survey, compiled by in-depth interviews with over 50,000 Australians each year.

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ROY MORGAN LIMITED

AustralianSuper targets $500bn after stellar 20pc return

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Original article by Glenda Korporaal
The Australian – Page: 13 & 20 : 6-Jul-21

AustralianSuper’s balanced option has posted a return of 20.43 per cent for 2020-21, compared with just 0.52 per cent in the previous financial year. The industry superannuation fund now boasts assets of $225m, and CEO Mark Delaney says it expects this to top $470bn by 2026. He adds that while equities are likely to perform well in 2021-22, he does not expect super funds to match their returns for 2020-21. Meanwhile, AustralianSuper has secured a deal to acquire a 40 per cent stake in the Moorebank intermodal logistics facility in Sydney.

CORPORATES
AUSTRALIANSUPER PTY LTD

Super giant to reduce its stake in Ausgrid

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Original article by Perry Williams
The Australian – Page: 18 : 30-Jun-21

Industry superannuation fund AustralianSuper proposes to reduce its stake in electricity distribution company Ausgrid from 25.2 per cent to about 10 per cent. AustralianSuper and IFM Investors paid $16bn for about 50 per cent of Ausgrid in 2016, as part of the New South Wales government’s privatisation program. AustralianSuper and IFM each have a right of first offer over any sale by the other of their Ausgrid holdings; AustralianSuper is in turn one of the largest shareholders in IFM.

CORPORATES
AUSTRALIANSUPER PTY LTD, IFM INVESTORS PTY LTD, AUSGRID PTY LTD