New approach needed for desperate income investors

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Outdated portfolio thinking has left millions of Australian retirees vulnerable to low interest rates and higher sharemarket volatility, argues Allianz Retire+ . As interest rates worldwide plumb record lows, retirees are taking on more risk to earn enough investment income to live on – a strategy that could permanently damage their wealth. “The latest rate... Read more continue reading

Super recovery still underway as outlook improves

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The recovery in superannuation continues as lockdown conditions gradually ease across the country and Australians prepare for a relatively normal summer, with fewer restrictions on gatherings and business operations. According to estimates from leading superannuation research house SuperRatings, the median balanced option returned 0.5% in October, while positive market movements in November point to continued... Read more continue reading

Super funds can benefit with the adoption Responsible Investing goals with an after-tax investment focus: Parametric Research

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Superannuation funds should implement responsible investing in a tax-managed way according to a new research paper by the global implementation specialist manager Parametric. The paper presents a hypothetical tax-managed Responsible Investing portfolio that adds a quarter of a percent in after-tax returns each year over a non-tax-managed version. Raewyn Williams, Head of Research (Australia) and Analyst Josh McKenzie at... Read more continue reading

Russell Investments launches GoalTracker – Australia’s first truly personalised super solution

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Russell Investments has launched Australia’s first goals-based superannuation solution, using mass personalisation and proprietary algorithms to make it possible for every Australian to access a tailored investment strategy based on their unique circumstances and retirement income goals. The launch comes as Russell Investments released research showing that a personalised approach to asset allocation and voluntary superannuation... Read more continue reading

Income-targeting retirement portfolios could struggle to measure ‘success’ wel

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The Retirement Income Panel’s work over the past year should give superannuation funds all the motivation they need to decide what ‘success’ in funding pensions really means, according to a research note by the global implementation specialist manager Parametric. Raewyn Williams, Head of Research (Australia) and Analyst Josh McKenzie, in a ResearchBite titled “Income-Targeting in a Retirement Portfolio:... Read more continue reading

A performance test for super funds will undermine performance, detrimentally impact on innovation and erode confidence in the system

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The Federal Government announcement that it will subject super funds to an annual performance test and block underperformers from taking new members is draconian, overly simplistic and if implemented, will have potentially significant and negative impacts on investment outcomes for members, according to Matthew Griffith, Principal Consultant at JANA, Australia’s largest investment consultancy. Matthew believes... Read more continue reading

Steady returns put super funds back in the black

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The recovery in superannuation continued through August as funds posted their fifth consecutive month of gains amid signs of economic recovery in the September quarter. Market stability and continued momentum in shares helped to bolster account balances in August. However, while consumers and investors are looking ahead to a ‘COVID normal’ world, the recovery is... Read more continue reading

Super tax changes will cost retirees

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The possibility for government to increase superannuation taxes in response to the ballooning budget deficit caused by COVID-19 could severely hurt member balances at retirement, according to a research note by the global implementation specialist manager Parametric. Raewyn Williams, Head of Research (Australia) and Analyst Josh McKenzie, in a short paper titled “Will retirees pay the... Read more continue reading

Commonwealth Superannuation Corporation invests in mental health

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One of Australia’s largest super trustees, Commonwealth Superannuation Corporation (CSC), has announced its partnership with workplace mental health organisation SuperFriend, effective 12 August. CSC is trustee for 11 super funds, collectively managing around $50 billion in funds under management for 730,000 Government and Australian Defence Force employees. SuperFriend will support employers and customers of CSC’s super funds, in... Read more continue reading

Super funds close to recouping losses, but pandemic risks remain

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Super funds have started the new financial year with some positive momentum but face a period of stark uncertainty as Australian cases of COVID-19 rise and Victoria enters harsher lockdown conditions. While we have seen stabilisation in markets, they remain vulnerable to further shocks, while super fund performance is contingent on how communities and economies... Read more continue reading