Investment Strategy

FSC renews calls for more competition in super to reduce fees

The Financial Services Council (FSC) has used comments by the Assistant Treasurer to renew its calls to have the market opened up to its members. It believes this will increase competition and bring fees down. FSC’s chief executive Sally Loane said: “The Government’s proposal is in the best interests of consumers and should be implemented […]
Hedge Funds

Brad Holzberger: a new way of measuring performance

The debate on how asset classes are categorised as growth and defensive has arisen again. I can recall debating this many times since superannuation performance surveys began to achieve prominence. The matter is deemed important because it enables super funds to categorise their default option into the central balanced (61 – 80) category and thereby […]
Hedge Funds

Definition of ‘growth’ distorts performance tables

Funds are being accused of gaming the success of their MySuper products by understating the level of growth assets. Analysis by PwC of the strategic asset allocations for 30 funds in the SuperRatings SR 50 Balanced (60-76) index per cent survey has shown a wide variety of interpretation for growth assets. The implications are large. […]
Hedge Funds

Low fees do not give best retirement outcomes

Low fees have little correlation with fund performance or retirement outcomes, according to research conducted by SuperRatings. This research stands in opposition to the Grattan Institute which called on the government to run a tender on default funds, as they claim there is little evidence that funds that charge higher fees provide better member services. […]
Hedge Funds

UniSuper defies naysayers on domestic economy

UniSuper’s overweight position on Australian equity income stocks has helped its balanced fund to become the highest performing in 2014, it achieved 10 per cent returns – the lowest performing fund achieved 5.3 per cent. John Pearce, chief investment officer of UniSuper, continues to keep faith in domestic stocks despite widespread sentiment that falls in […]
Policy and Regulation

Unisuper considers passive benchmark as Murray review response

Unisuper would consider benchmarking its returns after fees with a diversified passively run portfolio to justify the use of active management. The proposal was made by John Pearce, the fund’s chief investment officer, in response to criticism of the impact active management has on fees in the Financial System Inquiry’s interim report. Unisuper’s balanced fund […]

Care Super and Asset Super post-merger

When CareSuper and Asset Super sat down to work out their post-merger investments, they quickly found that the two funds together had around 40 managers – and only one of them was in common. They had a common custodian, in National Australia Bank asset servicing and the same administrator, in AAS, but rationalising and then […]