Peter Burgess

The SMSF Association has lauded the Federal Government’s decision to fast track the implementation of a legacy pension amnesty.

SMSF Association CEO Peter Burgess says this is an early Christmas gift for over 17,000 SMSF legacy pension accounts that now have five years to commute their pension and take advantage of a flexible pathway to allocate associated reserve amounts.

“These newly registered regulations – Treasury Laws Amendment (Legacy Retirement Product Commutations and Reserves) Regulations 2024 – provide much-needed reform to retirees trapped in non-commutable legacy pensions, including legacy lifetime, life expectancy and market-linked income stream products.

“Considering the age of these superannuants, they now have a genuine opportunity to restructure their retirement savings effectively.”

Burgess says the decision to grant this amnesty is a tribute to the Association’s persistent lobbying on this issue over the past five years.

“These regulations represent a big win for the sector and the Association’s advocacy team, especially the decision to be make it a standalone policy priority and not be linked to other tax policies such as the proposed Division 296 tax.”

He says that while these regulations are a welcomed development, there is a lingering sense that some opportunities to further enhance the regulatory framework surrounding this measure may have been missed.

“In our submission on the draft regulations, we noted it was common practice for legacy pensions to cease rather than be commuted on the death of the primary beneficiary or on the completion of the payment term.

“We encouraged Treasury to consider the inclusion of an additional cap-free pathway to allow a pension reserve to be exited from the system where the pension recipient(s) has died.

“Unfortunately, this was not heeded so it appears an opportunity has been lost to quickly and efficiently eliminate these potentially large reserves.”

He adds that the Association also flagged the potential social security ramifications emanating from the regulatory changes.

“Notwithstanding industry’s recommendations for Treasury to work with the Department of Social Services to ensure these concerns were addressed, at this stage we’re not aware of any social security legislative instruments, or other supporting materials, that serve to alleviate any of these concerns.

“While we understand a legislative instrument to remove the social security ramifications is likely, without further clarification or developments on this front, concerns still linger that social security sensitive members may be negatively impacted by this recent development.”

These regulations, along with all other key legislative changes from 2024 impacting SMSFs, will be a feature of the SMSF Association National Conference 2025 next February. Held at the Melbourne Convention & Exhibition Centre from 19 – 21 February, attendees will hear the latest updates in depth from the experts.

The post SMSF Association celebrates legacy pension amnesty as a win for retirees appeared first on AdviserVoice.

Peter Burgess

The SMSF Association says the framework outlined in the second tranche of the Government’s Delivering Better Financial Outcomes (DBFO) reform package lays the groundwork for reducing the cost and improving access to advice, but as is often the case, the devil will be in the detail.

The Minister for Financial Services, Stephen Jones, announced the package yesterday, stating it would ensure more Australians would have access to quality and affordable financial advice.

SMSF Association CEO, Peter Burgess, said there can be no argument reforms are needed to reduce the cost of advice and to open up new channels of professional advice to support the 15,500 existing financial advisers servicing the community’s financial advice needs.

“We have consistently argued that these new channels are urgently needed to enable more individuals to access quality advice to improve both their financial and mental well-being.

“Meeting this need has become even more evident when the growing number of baby boomers entering retirement is considered – many of whom cannot currently afford to get advice.”

Burgess said that considering the Government’s focus on creating a new class of adviser to provide safe and simple advice, it remains a mystery to us why the role other professional advisers, such as accountants, could play was still being overlooked.

“It was our contention that the Quality of Advice Review neglected the significant role accountants can play in addressing the growing advice gap, and the Government is perpetuating this oversight.

“By giving accountants a defined advice role, it will further support consumers to access the advice they need when they want it from their choice of trusted adviser.”

He said new educational pathways were needed to not only ensure the sustainability of the financial planning sector, but to ensure the future financial advice needs of all Australians could be met.

“The success of this model will depend on ensuring that the education requirements for the new class of adviser truly provides a pathway to becoming a financial adviser.

“We welcome the opportunity for all AFS licensees to employ the ‘new class’ of adviser and support more individuals on their pathway into a rewarding and fulfilling career.”

He added that many consumers needed point in time advice, often driven by life events, so modernising the best interest duty provided certainty to the sector that they could meet this need by providing advice on a single topic or limited scope of advice.

Burgess said the professionalism that now characterised the advice sector was a credit to its practitioners, providing the foundation for the sector to now expand so that it could meet the advice needs of a growing number of Australians in an affordable way.

“The Association looks forward to working with the Government to ensure the right balance between opening up advice to more Australians is achieved without surrendering important consumer protections.”

The post SMSF Association supports push for affordable and accessible financial advice appeared first on AdviserVoice.

Peter Burgess

The self managed super fund (SMSF) sector has notched up a significant milestone following the release of the Australian Taxation Office’s (ATO) September 2024 quarter SMSF statistics which show total SMSFs assets have surpassed $1 trillion for the first time.

SMSF Association CEO Peter Burgess hailed the ATO’s quarterly statistics as a landmark achievement for the sector, noting that while the figures are estimates, they underscore the confidence Australians place in SMSFs. As at 30 September 2024, Australians have entrusted approximately $1.02 trillion of their retirement savings to SMSFs – a powerful testament to the value of “choice” and the benefits of SMSFs.

“SMSFs can provide the ultimate level of control and flexibility which in-turn empowers and encourages greater level of engagement.”

“This extra flexibility and control can manifest itself in many ways including investment flexibility, estate planning flexibility and the ability to structure the fund in a way which best suits the needs of fund members.”

“It’s always been the Association’s mantra that SMSFs are not for everyone. But for those individuals who want to take direct control of their retirement savings, whether in the accumulation or decumulation phase of superannuation, they have proved a very effective vehicle.

Burgess said the sector had thrived despite a long-running campaign that asserted SMSFs were costly, complicated, and delivered lower investment returns compared with their APRA-regulated counterparts.

“These were criticisms that the sector – and the Association – took extremely seriously, so it was gratifying when research commissioned by the SMSF Association showed that an SMSF with net assets of $200,000 can be competitive in terms of costs and investment returns compared with APRA funds.”

Burgess said the Association was proud of the sector’s remarkable evolution, noting the concept of small, member-controlled superannuation funds emerged in 1985 under the term ‘excluded funds’ before SMSFs were introduced in 1999 alongside a more comprehensive regulatory framework.

“Over nearly four decades we have seen the emergence of a dedicated cohort of advisers who have played a critical role in guiding SMSF members through their own unique superannuation journey. The fact that every inquiry into superannuation has given our sector a clean bill of health is testimony to the professionalism they bring when advising their clients.”

This significant milestone will be celebrated at the SMSF Association’s 2025 National Conference, being held at the Melbourne Convention and Exhibition Centre from February 19 -21, where the theme, ‘Collaboration: Unleashing Collective Potential,’ will highlight the importance of working together to explore and shape what the future holds for the sector.

The post Self managed super funds surpass $1 trillion milestone, highlighting the strength and professionalism of the sector appeared first on AdviserVoice.

High conviction Australian equities manager, Altair Asset Management, today announced a series of appointments to its team of Australian equities experts.

Altair’s philosophy is to only invest in a focused portfolio of Australian equities. “Historically, Australian equities have proven to be the most reliable asset class over the long term,” said Managing Director Philip Parker.

“Altair is focused on active management of investment strategies and client portfolios. The ability to be nimble, confident and responsive is the key to active management.

Launched last month, Altair is headed by Mr Parker, whose career in investment markets spans funds management, dealing and advising.

The latest appointments join a team of experienced investment professionals. Head of Research and Process, David Langford, was formerly Head of Research at ING Investment Management and has also held senior roles at a number of top tier global investment banks; while Chief Economic Advisor, Stephen Roberts, who was most recently Nomura’s Chief Economist in Australia, has a career spanning almost 40 years with extensive experience in banking, broking and funds management.

The team also includes Portfolio Manager and Analyst Tim Riordan; and Mathew Longworth, a geologist and Senior Consultant Analyst for resources companies.

The new appointments announced today are:

Alvin Chan – Portfolio Manager/Analyst

Mr Chan is responsible for research across various industrial-related sectors, and will also be assisting in managing Altair’s equity income and concentrated equity strategies.   Mr Chan brings broad-based industry and analytical experience, most recently from AMP Capital, where he was a Portfolio Manager and Analyst in the Capital team.

Cindy Liu – Senior Quantitative Analyst

Ms Liu is responsible for quantitative analysis and developing the team’s quant techniques.  She specialises in Australian equity systems for asset management.  She was previously a Quantitative Analyst at ING Investment Management.

Daniel Stein – Associate Analyst

Mr Stein is responsible for financial modelling, analysis and equity research. He was most recently an Analyst in the Corporate Finance team at Wilson HTM.

Toby Bellingham – Equities Trader

Mr Bellingham is responsible for Altair’s trading and related execution functions.  He is an experienced equities trader, and most recently worked at Invesco and Schroders Investment Management in Sydney.

“Actively managing an equities portfolio demands rapid, informed decisions,” Mr Parker said. “To do this you need a team that is experienced in a wide range of aspects of the Australian equities market, to provide the perspective and insight to make those decisions confidently.”

“We’re extremely pleased that we’ve been able to form such a talented, highly-skilled group of investment professionals.

“David comes with extensive experience and deep networks in the equity market and corporate Australia, which is complemented by the analytical insights and abilities of Alvin, Cindy and Daniel. This greatly enhances our research process, because access to market participants is crucial to understanding a company’s true value.

“We’re also delighted to have on board one of the most experienced and respected members of the Australian investment community in Stephen. “The team will certainly benefit greatly from his expertise, and we’re confident each of these appointments gives Altair an experienced team that will help us deliver institutional rigour with a personal approach,” Mr Parker concluded.

The post Altair unveils series of senior appointments appeared first on AdviserVoice.

Phillip Parker

Altair Asset Management (Altair) today announced the launch of its Australian equities business. Altair is a high conviction fund manager offering investment options designed to meet the financial needs of clients at different life stages.

The Altair investment philosophy is based on understanding a range of “change factors” and how they might impact a company or industry, says Altair’s Managing Director and Chief Investment Officer, Philip Parker.

“We believe that understanding prospective change and the pace at which it is likely to occur permits the capture of investment opportunities.  Possibilities arise from companies that drive or embrace change, in addition to those that may suffer negative impacts,” Mr Parker said.

“The key is being able to recognise when the market has miscalculated the extent or timing of the change and has mispriced its influence.”

Altair uses its industry knowledge and broad networks to filter and assess which companies are most likely to benefit from change.

Altair has assembled a team of experienced investment professionals from various corporate backgrounds, rich in experience and ideas. They include Managing Director and Chief Investment Officer Philip Parker; Head of Research and Process David Langford; and Chief Economic Advisor Stephen Roberts.

Mr Parker was a co-founder and principal of Hunter Hall in the early nineties and then established his own private client wealth management business – Parker Asset Management – in 2000.  Altair has evolved from the success of Parker Asset Management, to now offer managed portfolios and managed funds to self managed super funds, adviser dealer groups and institutions as well as the existing clients, comprising individuals and family offices.

Altair’s investment product suite – designed to meet the life stage needs of their clients – includes an Income Strategy focused on delivering income generating outcomes for investors; and its Advantage Strategy, a  concentrated portfolio of actively managed Australian shares.

Mr Parker says the private wealth management success and long term client relationship experience, together with broad institutional investment experience, provides institutional rigour while retaining the personalised wealth service that has been the hallmark of his business for over a decade.

“The combination of private wealth management and an institutional process is unique, and a different skill set to that provided by many smaller fund managers that are formed through break-away teams from large investment houses,” Mr Parker concluded.

The post Change presents significant opportunities for investors appeared first on AdviserVoice.