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

Women are faced with new retirement realities since Coronavirus hit

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Australians are feeling less confident about their retirement in a post Coronavirus world and think they might be forced to delay retirement and work longer than expected, according to new research by Colonial First State (CFS). The new CFS Retirement Realities research found: Nearly half (45 per cent) of Australians are either scared or do not feel... Read more continue reading

Equity Trustees appointed super trustee for HUB24

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EQT Holdings Ltd (ASX: EQT) (Equity Trustees) has announced its appointment as the trustee for the HUB24 Super Fund, part of HUB24’s investment and superannuation platform. As part of one of the fastest growing platforms in the market the HUB24 Super fund has $7.9 billion in funds under administration (FUA).¹ Equity Trustees’ Managing Director Mick... Read more continue reading

Superannuation proceeds trust: excepted income changes

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The recent Tax Act amendment on excepted income of testamentary trust distributions may potentially affect superannuation proceeds trusts (“SPT”) that are structured as testamentary trusts.  The amendment is an integrity measure to prevent assets unrelated to the estate being injected into the testamentary trust for the purpose of generating concessionally taxed excepted income.  Importantly, the... Read more continue reading

Australian Ethical among top performing super funds in Australia

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Australia’s original ethical investment manager Australian Ethical (ASX: AEF) has continued its track record of delivering market-leading financial returns for its members with positive impact for the planet. According to new data from leading research house SuperRatings, the Australian Ethical Balanced (MySuper) option ranked third for its one-year performance in a year dominated by the... Read more continue reading

Retirement framework must consider longevity risk protection and better, low-cost advice

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Superannuation funds should include a longevity-based product in their retirement income offerings and provide retirees with greater levels of low-cost financial advice to help improve living standards for older Australians. In a Dialogue paper, Developing the Retirement Income Framework, academic actuary Anthony Asher states that having products that more efficiently manage longevity risk will result... Read more continue reading

Super fund recovery brings FY20 returns back from the brink

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A strong June quarter has seen super funds recover from the depths of the COVID-19 crisis in March, however results for the 2020 financial year will fall shy of a positive return. As major industry and retail funds begin reporting their returns up to June, the full impact of the virus thus far has been... Read more continue reading