The SPIVA Scorecard suggests that most Australian actively-managed funds underperform comparable market indexes, but this analysis can be challenged by a number of key assumptions.
The Royal Commission has severely damaged the reputations of many retail funds. While the CEO of the peak body for industry funds is not complacent, battles have been won.
Recent regulatory proposals expand the existing scale test to an outcomes test by determining annually whether the fund’s MySuper products are meeting the clients’ best interests. Similar tests can apply to SMSFs.
The mandating of independent directors for Australian super funds is facing resistance. While it’s difficult to define ‘independence’, global experts on board governance provide support for the government’s stance.
Extracts from Peter Costello’s talk to super fund executives, where he criticises their self-interest and poor handling of the super policy debate. And from a prior speech, he backs Nick Sherry’s call for simplicity.
The government guarantee on deposits has finally been legislated and based on information released by APRA you’d be forgiven for assuming that superannuation bank deposits would be covered. Not necessarily.
Defined benefit funds will be scarce in the future but their features shouldn’t be forgotten. Defined contribution funds should be incorporating some of these features to their members’ advantage as well their own.
Research shows most super fund Investment Managers consider tax implications when making their investment decisions. With the right tax knowledge and confidence, they could achieve even greater tax efficiency.
APRA’s decision to continue to class deposits in public super fund as ‘non-retail’ makes it difficult for them to compete with banks and SMSFs. However, some in the industry still believe trustees can take a stand.
The top priority for all superannuation funds is improving member engagement, but most need to improve their techniques. It’s one way to reduce the leakage of members, especially to SMSFs.
The funds management industry is undergoing consolidation and evolving rapidly, under pressure to provide better service and high returns while cutting costs. Chris Cuffe discusses the present and the future.
There’s as good a record as any, from the father of modern superannuation. The start of national superannuation was 4 September 1985, not seven years later when the superannuation guarantee started.
It’s not surprising that research shows high levels of satisfaction for self managed portfolios, as investors are effectively rating themselves. Regardless of the reason, few SMSFs will return to an institutional fund.
FOFA demands higher professionalism, improves client confidence and presents opportunities for reputable advisors. The cleansing effects of the legislation are expected to outweigh the costs in the long term.
There are important features which distinguish the different lifecycle offerings and they can have a significant impact on member outcomes. Rating agencies will need to adapt their processes versus normal balanced funds.
Don’t judge the extent to which institutional investors influence listed companies by the big public event, the AGM. Private meetings with executives of listed companies are ongoing and lively.