The task of creating a world-class retirement system is only half-done, the Grattan Institute says. In a new report, it proposes a fix to the retirement phase based on systematic annuitisation, alongside account-based pensions, to circumvent reliance on individual funds getting their act together under the Retirement Income Covenant, which it says will take too long and produce inconsistent outcomes for members.
The $34 billion Brighter Super is set to shift a significant proportion of equities assets in MySuper from passive to active management. Chief investment officer Mark Rider says the move is possible because of the scale created by mergers, and the fund will be looking to its newly appointed active managers to generate performance through the cycle by taking idiosyncratic risks.
Insignia Financial has received another sweetened offer from CC Capital, offering $4.6 cash per share to acquire the wealth giant.
The brunt of losses from the LA wildfires are expected to be borne by primary insurers and high-risk reinsurance programs, but super funds are nevertheless closely monitoring the possible impact of the fires on catastrophe bond and insurance-linked securities exposures.
The hydrogen revolution is well and truly underway. The so-called “smart money”, including Bill Gates’ Breakthrough Energy Ventures, Jeff Bezos’ Climate Pledge Fund and Khosla Ventures, has placed early bets on natural hydrogen, despite uncertainties around its location and whether it can be economically extracted. Here is a brief form guide for asset owners disinclined to do their own deep due diligence.
The Coalition is reportedly considering a proposal to reduce the superannuation guarantee to 9 per cent if it wins the election. Many in the industry would understandably view any such move as a partisan effort to weaken the system, but they must also be open-minded about the evidence and accept that improving quality of service is the best response to critics.
Two years in a row, Norges Bank has topped the Global Pension Transparency Benchmark, published by Investment Magazine sister publication, Top1000funds. But when interviewed in 2023 about being awarded the most transparent fund, it was clearly a priority but not yet a completed project for the Norges Bank CEO, Nicolai Tangen. In the year since then, the fund has taken the idea of transparency and run with it, making huge gains through a concerted effort that among other things required advocating the government to make governance changes.
MUFG Pension & Market Services has enlisted a tech consultant to help expand its retirement service arm that provides super fund administration.
HESTA and super fund-owned investment vehicle IFM Investors has acquired a stake in subscription vehicles company Splend Group.
Superannuation funds are being called upon to do more to assist the millions of Baby Boomers currently transitioning to retirement. But the task of developing retirement income strategies for members has been tripped up by the nation’s notoriously complex financial advice laws. And the project’s success now hinges on a reform agenda that remains far from certain.
Some superannuation funds seem eager to hold back their delivery of better retirement outcomes to members until the financial advice reforms are bedded down, or members have more money, or the SG rate increases. But the tools are available now to provide a better solution to members. The key ingredient is keeping it simple.
In order for a superannuation fund to deliver what would be considered a leading retirement offering, they must ensure sufficient attention to the three prongs of investments, product and guidance/advice. The different objectives between retirement and accumulation suggest different strategies may be required – not just a rehash of accumulation.
The investment intelligence behind Australia’s largest asset owners and their teams
In-depth interviews with leaders, experts and visionaries in the institutional investment community
Updates on the latest industry policy developments and regulation
The challenges and innovations of custody, technology and operational due diligence
Investment Magazine provides in-depth, monthly analysis of trends and developments for all the businesses in which superannuation funds engage‚ including asset allocation, investment manager selection, custody and fund accounting, member administration, group insurance and compliance.
We acknowledge the Traditional Custodians of this land upon which Conexus Financial sits, the Cadigal of the Eora Nation. We recognise their continuing connection and unique cultural and spiritual relationships to the land, waters and community. We pay our deepest respects to them and their culture, and to Elders both past and present.
