Value managers have played a key part in handing Insignia Financial’s significant superannuation arm 2 per cent alpha in its global equities portfolio, despite the fund’s underweight position in technology stocks that many of its peers relied on to drive returns.
Inflation is one of the major risks any provider of retirement solutions needs to effectively address, but inflation is having another, possibly unexpected impact on retirement: concerns over the rising cost of living are beginning to cause people to think about retiring later.
As a growing number of superannuation funds announce double-digit FY24 investment returns for members, CFS chief investment officer Jonathan Armitage says robust risk management must remain at the front of asset owners’ minds, and the benefits of effective diversification should not be forgotten.
Chief investment officer of the $55 billion AMP Super, Anna Shelley, says more funds will potentially crank up members’ exposure to growth assets as life expectancy increases and people retire later. As it delivered over 11 per cent for around 80 per cent of members in FY24, Shelley says the end point of retirement investing is no longer the age of 65, but 100.
TelstraSuper has posted a 9.6 per cent return for its MySuper Growth option in FY24, which is the investment option that applies to all members below age 50 who do not make an investment choice.
Aware Super has reported an 11.02 per cent return for its High Growth accumulation option in FY24, the default members aged 55 and under with the fund’s MySuper product, which has a lifecycle design.
The nation’s largest superannuation fund, AustralianSuper, has returned 8.46 per cent in its MySuper Balanced investment option, and 10.2 per cent for High Growth in FY24.
Sequoia Financial Group will streamline its divisional structure from four to two reporting divisions, as well as reduce headcount by 10 per cent.
Life insurance policy extender iExtend has gained its AFSL after ASIC accepted a court enforceable undertaking from the business to apply for a license earlier this year.
Super Consumers Australia warned that more work needs to be done from funds to mitigate risks of super scams, as the advocate group’s recent survey found 81 per cent of Australians want their funds to provide more active protection.
Australian Ethical has appointed Fiona Reynolds, former CEO of UN-backed Principles for Responsible Investment, to its super board.
Super funds claim uncertain advice regulation is holding them back from fulfilling their Retirement Income Covenant obligations, as regulators once again take them to task for an underwhelming response. The Conexus Institute notes funds have yet to get their act together on collecting enough member data to properly inform a strategy.
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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.
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