SUPERANNUATION – RESEARCH – AUSTRALIA

Super climbs 9.6pc to $1.87 trillion

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Original article by Andrew Main
The Australian – Page: 23 : 21-Nov-14

The latest data issued by the Australian Prudential Regulation Authority on the nation’s superannuation sector show that the total funds held in such accounts grew 9.6% to $A1.87trn in the year to late September 2014. Of this, 29% was made up by self-managed super funds. Some experts argue that the figures are meaningless as they do not contain a breakdown by type of fund, or average increases. Research firm Chant West notes that the median growth fund expanded 6.2% between January and October 2014

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, CHANT WEST FINANCIAL SERVICES PTY LTD, AUSTRALIAN INSTITUTE OF SUPERANNUATION TRUSTEES, UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, AUSTRALIAN TAXATION OFFICE

SMSFs’ returns hurt by local bias

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Original article by Andrew Main
The Australian – Page: 22 : 18-Nov-14

UBS Global Asset Management has conducted new research on the superannuation sector for the Financial Services Council (FSC). It shows that just 17% of self-managed super funds (SMSFs) in the 12 months to November 2014 achieved growth of 10% or more. This compares unfavourably with an average return for large super funds overseen by the Australian Prudential Regulation Authority of 11.6%. A major factor in the gap is the limited allocation of funds by SMSFs to overseas assets. FSC CEO John Brogden nevertheless predicts the SMSFs segment to continue its rapid expansion

CORPORATES
FINANCIAL SERVICES COUNCIL, UBS GLOBAL ASSET MANAGEMENT (AUSTRALIA) LIMITED, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY

Banks slow on MySuper switch

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Original article by Andrew White
The Australian – Page: 21 : 11-Nov-14

A new Rainmaker Information study for Industry Super Australia (ISA) shows that retail superannuation funds owned by the major banks have been tardy in moving customers into new low-fee default products. Under the MySuper regulations the switch must occur by mid-2017, but the retail funds have been only half as quick to comply as their rival industry super funds. ISA CEO David Whitely notes this is generating additional fee income for the banks. The submission by his body to the Australian Government’s financial system review also argues that banks should be banned from bundling banking and super products

CORPORATES
INDUSTRY SUPER AUSTRALIA PTY LTD, RAINMAKER INFORMATION SERVICES PTY LTD, FINANCIAL SERVICES COUNCIL, BT FINANCIAL GROUP PTY LTD, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA. FAIR WORK COMMISSION

Retirees left to flounder after they leave work

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Original article by Karen Maley, Ruth Liew
The Australian Financial Review – Page: 6 : 16-Jul-14

The financial system inquiry has found that retirees are not given sufficient guidance by the superannuation sector. It is argued in the interim inquiry report that the sector does not offer sufficient risk management options to retirees in the draw-down phase. For instance, few income stream products with longevity risk cover are available in Australia. A new round of submissions on how to cope with an ageing population is sought by the inquiry

CORPORATES
FINANCIAL SERVICES COUNCIL, AUSTRALIAN LABOR PARTY, CHALLENGER FINANCE PTY LTD, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED