Ian Patrick

Sunsuper has awarded US based fund manager, Payden & Rygel, a $150 million mandate to manage a customised version of the Payden Absolute Return Investing (PARI) strategy.

Payden & Rygel is represented in the Australian market by Grant Samuel Funds Management (GSFM) and manages over $1.3bn in Absolute Return and Investment Grade Corporate portfolios on behalf of institutional and retail clients.

PARI is an actively managed global fixed income strategy that is unconstrained by traditional benchmarks. It aims to produce stable returns over time, regardless of how the overall market performs, and to provide a gross return of 2 – 3% per annum above the Bloomberg AusBond Bank Bill Index over time. By comparison, Sunsuper’s customised mandate will target an excess return (before fees) of 1.75%.

Sunsuper is one of Australia‘s largest and fastest growing super funds with $50 billion in funds under management and more than one million members. Chief Investment Officer, Ian Patrick, says this mandate will benefit members investing in the Fund’s Balanced, Retirement and Conservative options.

“This mandate is one of the many innovative ways we’re adding value to our members’ investment returns to meet their retirement savings needs,” Mr Patrick said.

“Sunsuper’s size and experienced investment team allows us to access specialised overseas investment strategies and tailor portfolios that generate an attractive risk/return profile, provide diversification and deliver greater value for money.”

The customised PARI strategy will be used as an additional alpha source alongside Sunsuper’s internally managed cash plus portfolio.

Charles Levinge, GSFM’s head of institutional business, says this is Payden & Rygel’s second absolute return fixed income mandate in the Australian market.

“Being awarded this mandate is not only a reflection of the continued interest we’re seeing in PARI but also Payden’s ability to work with clients to tailor and customise portfolios to meet their specific objectives,” Mr Levinge said.

The PARI approach has been developed and refined over more than nine years, and has over $7 billion in assets invested on behalf of clients globally.

The post Payden & Rygel wins Sunsuper mandate appeared first on AdviserVoice.

Anne Fuchs

In a new report by one of Australia’s biggest super funds, Sunsuper has found that financial advice could help a young family enjoy more lifestyle choices and be $240,000 better off at retirement.

Sunsuper commissioned CoreData to conduct research and modelling of milestones and scenarios to better understand the value that financial advice offers Australians throughout their lives and into retirement.

Sunsuper’s Value of Advice Report ^[1] shows of how financial advice could help Australians fund lifestyle goals, like family holidays, private education and trauma cover.

For example financial advice helped case study one: a 34-year-old Australian couple maximise their money to pay for six additional years of private education for two children, 32 years of trauma cover and a family holiday every year until retirement.

CoreData surveyed more than 1,000 working Australians and found that those who received advice 80% said it gave them more confidence to make financial decisions and 77% said they feel prepared for retirement.

Of those who had not received financial advice 42% said they believe they will rely on the age pension and only 16% said they believed they would have a good standard of living in retirement.

Sunsuper’s Head of Advice and Retail Distribution Anne Fuchs said the research validates the value of services financial advisers provide to Australians in helping them achieve their financial goals and retirement dreams.

“Most Australians have a pretty good idea of the lifestyle they want to live now and in retirement. But a lack of financial literacy could be blamed for what people believe they can achieve and what their actual financial situation will be in the future.

“The extensive modelling by CoreData shows in all three case studies of couples at different life stages financial advice improved their current situation and allowed them to take additional holidays – meaning they had the financial freedom to spend money on things they enjoy.

“We also looked at the affordability of trauma cover because we understand that added financial security is important for many families should they become seriously unwell – especially when by 2020 it’s estimated that there will be 150,000 new cases of cancer diagnosed in Australia.^[2]

“The modelling found that with advice the couple in their 30s could afford trauma cover for 32 years and the 50-year-old couple could enjoy 10 years of cover.

“We know nearly nine million Australians have unmet financial advice needs ^[3]. So we hope that by better understanding the value of advice, more Australians will get the help they need to achieve their financial goals to have a better lifestyle today and set them up to enjoy their retirement.”

CoreData Principal Economic Researcher, Andrew Inwood said modelling milestones and scenarios that most Australians experience helps to realistically define how couples are better off now and in retirement from seeking professional financial advice.

“Good advice does of course make you wealthier at retirement, but it also adds value all the way through your life in the choices you can afford to make about schooling, insurance, holidays, housing and personal interests.

“The important thing to measure is how it adds value to every life stage and enables individuals’ life aspirations – that’s what we have modelled.”

Sunsuper launched the Value of Advice Report at the Association of Financial Advisers annual conference on the Gold Coast today and hopes the report assists financial advisers to help more Australians achieve financial wellbeing now and in retirement.

Sunsuper manages more than $46 billion in funds for more than 1 million members nation-wide.

Additional findings:

CoreData and Sunsuper surveyed those who received financial advice and those who have not, and found of those who received advice:

• 93% are sure they could fund three months out-of-work (compared to 77% never advised)
• 84% always pay off their credit card each month (compared to 60% never advised)
• 75% of Australians believe financial advice is worth more than it costs
• Only 7% of Australians believe they’ll need to rely on the age pension in retirement (compared to 42% never advised)

Read the report here.

———-

1. www.sunsuper.com.au/valueofadvice
2. Australian Cancer Council, http://www.cancer.org.au/about-cancer/what-is-cancer/facts-and-figures.html
3. Investment Trends. Financial advice report 2015

The post Young family is $240,000 better off with financial advice appeared first on AdviserVoice.

Sunsuper’s partnership with Neuberger Berman accesses a globally diversified portfolio actively allocating across 12 of Neuberger Berman’s strategies. It will enable real time access to market opportunities across asset classes, and promote well-timed discussion of investment ideas. It also encompasses tailored research aimed at generating practical improvements to Sunsuper’s investment methodology, including its asset allocation.

Sunsuper spokesperson Alastair Sloan said: “The collaborative partnership with Neuberger Berman is an integral part of Sunsuper’s growth strategy, and an evolution of our investment approach. It demonstrates our serious intention to research opportunities together, share asset allocation views and enhance our investment processes and returns to members”.

Paul O’Halloran, joint managing director of Neuberger Berman Australia, said: “The Sunsuper team undertook an in-depth and detailed process in assessing us. It involved ensuring Neuberger Berman was the right fit culturally, and in terms of our range of investment capabilities, and our approach to research.

“To make a structure like this work takes serious commitment from all those involved. We believe the partnership will provide excellent results and that both sides will benefit from this joint research.”

Neuberger Berman’s multi-asset class chief investment officer, Erik Knutzen, said: “While Neuberger Berman has a number of strategic partnership relationships globally, we are excited about our first effort in Australia.

“The level of sophistication inside Australian superannuation funds is well recognised internationally, and Neuberger Berman looks forward to working with the high caliber investment team at Sunsuper.

The post Sunsuper announces strategic partnership with Neuberger Berman appeared first on AdviserVoice.