Retiring super fund members can’t wait for Government’s timetable

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Superannuation funds need to get on the front foot and respond to the strategic challenge of developing good retirement solutions now, says global implementation specialist manager Parametric CIO Paul Bouchey. “Although superannuation funds can follow the Government’s legislative timetable to develop a Comprehensive Income Product for Retirement (CIPR) by 1 July 2022, that’s hardly an […]

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Stronger Super not yet tax efficient

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Superannuation funds are largely ignoring the “Stronger Super” reform that embedded after-tax investing obligations into superannuation law, says global implementation specialist manager Parametric. Raewyn Williams, Managing Director of Research, Parametric Australia, says: “Six years after the Stronger Super reforms were announced, most superannuation funds still have a pre-tax focus. “This lack of progress with after-tax returns […]

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Productivity Commission misses important tax – retirement outcomes link

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The Productivity Commission’s final superannuation report missed an opportunity to show how the industry’s pre-tax investment focus is penalising members who retire on after-tax returns, says Raewyn Williams, Managing Director, Research (Australia), at the global implementation manager Parametric Williams says the Commission’s report, Superannuation: Assessing Efficiency and Competitiveness, provided some thought-provoking insights into Australia’s $2.7 trillion superannuation […]

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Evolve lifecycle strategies to improve retirement outcomes for super fund members, says Parametric

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Lifecycle investing is becoming an increasingly valuable option for superannuation funds aiming to construct a long-term default asset allocation strategy for their members. Research by the global specialist implementation manager Parametric shows that about 37% of total MySuper assets and 31 of the registered 111 MySuper products offer lifecycle investing. Although these assets and products […]

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Tax-efficient investing by super funds increases member retirement savings

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Nest egg could be more than 7% bigger if super fund uses tax efficient investing. Super fund members are missing out if their fund fails to adopt an integrated tax efficient approach to equity investing, according to global implementation manager Parametric. Parametric’s new research tracks the experiences of three hypothetical super fund members in two […]

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Research highlights super funds missing after-tax focus with factor investing

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New Parametric research highlights the misconception that factor investing is naturally tax efficient and identifies potentially significant tax drag associated with new factor strategies. Research co-author, Parametric’s Seattle-based Chief Investment Officer, Paul Bouchey, says: “Factor investing is an area of great interest to funds, tying together key themes in the industry of fee pressures, appetite […]

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New Parametric research clears a path towards responsible investing

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New research from Parametric, the global implementation specialist manager, lists five ways in which funds can adopt responsible investing, even where in the past funds may have held off for fear of short-term underperformance compared with their peers. Raewyn Williams, Parametric’s Managing Director, Research, says “Without a critical mass of super funds adopting responsible investing […]

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Superannuation funds should bypass “black box” for alternative investments, says Parametric

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The US-based implementation fund manager, Parametric, has devised an alternative source of return that will allow APRA-regulated funds to bypass hedge funds. Tom Lee, Managing Director Investment Strategy and Research, and Raewyn Williams, Managing Director – Research (Australia), have launched a new research paper prompted by superannuation fund trustees becoming uncomfortable with opaque ‘black box’ […]

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Research shows ‘capability sourcing’ is disrupting super ecosystem

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New research by Parametric, a global investment manager, shows that the superannuation ecosystem is being redefined by a series of foundational, strategic business decisions called “capability sourcing” – what Parametric calls the “make or buy” decision. Raewyn Williams, Parametric’s Managing Director, Research, explains: “superannuation funds are making the most of a “push to pull” paradigm […]

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Parametric cautions super funds: Franking is no free lunch, but super funds “can express their exact dietary requirements”

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Superannuation funds looking to deliberately tilt their Australian equity portfolios to maximise the benefits of franking credits need to address the significant risks inherent in such an investment approach, says the US fund manager, Parametric, in a new research paper titled “A Fresh Look At Franking”. The paper highlights that franking credits can be a […]

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