Graeme Miller: lets resolve growth/ defensive debate
I have followed with great interest the debate that has been taking place in your magazine over recent weeks about the classification of “growth” and “defensive” assets for superannuation funds. This is an important topic, and the current discussion and debate is timely. The primary purpose of superannuation is to provide retirement income. By its … Read more
Satisfaction levels with retirement savings jumps but reality different
Two thirds of older workers are satisfied they have sufficient funds put aside to retire, a significant increase from 2012 where satisfaction levels with retirement savings were below 50 per cent, according to the Financial Services Council (FSC) – Commonwealth Bank of Australia’s (CBA) Older Workers Report 2015. The report also found close to three … Read more
Super funds urged to exploit social media
The marketing departments of superannuation funds are facing a growing array of communication choices with the old fashioned press release of declining importance. Delegates at the AIST’s Marketing Ideas Exchange in Melbourne heard from Paul Cheal, general manager and partner at Honner, on how super funds can reach their members through social media or self-publication. … Read more
The big four investment consultants
There is a popular narrative that runs “investment consultants are struggling to retain their place and importance as super funds increase internal teams and become more self -reliant”. To make things worse leading funds have been successful in poaching their favourite consultants to work in-house, e.g. Jonathan Stanford leaving JANA to work for HOSTPLUS, Kristian … Read more
Independent proposal condemned as a sledgehammer approach by Garcia, but ASFA is in favour
The Australian Institute of Superannuation Trustees’ (AIST) submission, in reply to the draft legislation to change the governance structure of super funds, has heavily condemned the approach of the Government as risky and not supported by evidence. By contrast, the Association of Superannuation Funds of Australia (ASFA) says the proposal reflects changing community expectations, the … Read more
Market diverging from US Fed on QE expectations
No one is quite sure what the impact of US quantitative easing will be. Most commentary is that any interest rate rise will be slow and steady. But there is a huge divergence between the forecast for 2017 by the US Fed (as measured by the FOMC dot plot) and the market’s expectations. Christopher Diaz, … Read more
Future Fund’s credit portfolio on the offensive
Two of the largest institutional investors in Australia have revealed how they have developed concentrated high risk credit portfolios and built up large cash positions to cope with a low yield environment. Speaking at Conexus Financial’s first annual Fixed Income Forum, James Waldron, manager debt and alternatives at the Future Fund, revealed how cash now stands … Read more
Can fixed income still serve as a defensive asset class?
Fixed income is an asset class that has a lot demanded of it. It acts as diversifier, defends against inflation and provides liquidity. But with rates so low, how can it achieve all of this and generate some return? A panel of investors at the Fixed Income Forum debated the solution. Fixed income is a … Read more
Unconstrained managers taken to task by Ansell of ANZ
The ability of unconstrained fixed income managers to improve on conventional fixed income approaches, was challenged by Graham Ansell, general manager investment management, ANZ at the Fixed Income Forum in Melbourne. In front of a large audience of fixed income portfolio managers, specialist consultants and fund managers, Ansell expressed concern that investors were at danger … Read more
Insurance fund calls for defensive asset clarity
Super funds should not give up in their search for a mutually acceptable definition of defensive and growth assets, urges Paul Caskey, chief investment officer of the South Australia injury insurance scheme ReturntoWork. Caskey, who uses the performance tables of super funds to help benchmark his $3 billion fund, has stepped into a debate that … Read more
