Funds Management MC

Funds Management MC

12 funds to manage majority of super assets: KPMG

Posted by Anton Murray Consulting on . Posted in Funds Management MC

InvestorDaily

More than three-quarters of assets under management and member accounts are forecast to be managed by the 12 largest funds, once the current mergers on the horizon have played out. KPMG has made the call in its latest annual Super Insights report, which has recorded accelerated merger activity in the sector. Using ATO and APRA data, KPMG has focused on APRA-regulated funds, which represent $2.4 trillion in assets under management. During 2019/20, the number of funds had fallen from 171 to 154.

By the time the currently known mergers are through, 76 per cent of assets under management (AUM) and 77 per cent of member accounts are projected to be managed by the top 12 funds, each with AUM greater than $50 billion. Around half (47 per cent) of AUM and 43 per cent of member accounts are expected to be overlooked by five “mega funds”, in excess of $100 billion of AUM. AustralianSuper retained its spot as the largest fund as at June 2020, with around $180 billion in funds under management. Aware Super, after merging with VicSuper, and QSuper had overtaken AMP in second place, with around $120 billion in AUM.

The rest of this article can be found at investordaily.com.au.

Super system disadvantages middle income earners: Mercer’s David Knox

Posted by Anton Murray Consulting on . Posted in Funds Management MC

Investment Magazine

Middle income earners are most disadvantaged by the superannuation system, Mercer’s senior partner David Knox highlighted during an interview in which he pitched the concept of a universal pension for all Australians regardless of how wealthy they are or how much they earn. In addition to making the system simpler a universal pension would also make it fairer, Knox said during an hour-long interview with David Bell, executive director of The Conexus Institute as part of the group’s ‘Big Ideas’ series. Watch the full interview here.

While explaining the advantages of the universal pensions concept, Knox highlighted how the current system falls short for middle income earning Australians. “Under the current system it’s the middle income earners who miss out. Low income earners get the age pension, high income earners get more of the tax concessions, middle Australia don’t get much at all so even under the current system there is an equity issue,” Knox noted.

The rest of this article can be found at investmentmagazine.com.au.

How UniSuper, Cbus and Future Fund manage property climate risks

Posted by Anton Murray Consulting on . Posted in Funds Management MC

AsianInvestor

Rapidly rising appetite for Australian property among regional and international asset owners could leave the institutions exposed to billions of dollars of lost investment value. However, asset owners such as UniSuper, Future Fund, Cbus, Lendlease and fund managers argue that it’s possible to protect returns by combining active investing and pricing in climate risks. The rising dangers of a warming world are increasingly on the mind of Australian CIOs. On January 11 UniSuper chief investment officer John Pearce took an underweight position in the insurance sector, citing concerns over climate change having implications over insurers’ returns.

The country’s property sector looks particularly vulnerable. A 2019 report by the Climate Council in Australia said local real estate could lose A$571 billion ($436.31 billion) in value by 2030 due to climate change and extreme weather. Climate risks could also cost owners 1% or more of the property’s value per annum.  Despite these risks, local and international asset owners are keen to invest into more Australian property.

The rest of this article can be found at asianinvestor.net.

TelstraSuper chair calls for equality in retirement

Posted by Anton Murray Consulting on . Posted in Funds Management MC

Investment Magazine

Anne-Marie Corboy, chair of Australia’s largest corporate superannuation fund, talks to Investment Magazine about sustainability, the Retirement Income Review and the urgent need for policies that help disadvantaged women.

Q |With 30 years’ experience as a director and chair and a former chief executive of HESTA, what policies do you think Canberra should put in place to improve the retirement outcomes for women who are disadvantaged?

A |Women in Super have very sound policies in this area which they have been advocating for some time – and which I strongly support – including an increase in the superannuation guarantee, abolishing the $450 threshold and paying superannuation on parental leave. A further important issue being discussed more is the taper rate for access to the Age Pension, just another policy decision which has a major impact on women. This policy needs more discussion and reform. I would also like to see intra-fund advice expanded so that access to the Age Pension can form part of the advice in relation to superannuation balances.

The rest of this article can be found at investmentmagazine.com.au.

Super merger mania could hurt members: Bennelong

Posted by Anton Murray Consulting on . Posted in Funds Management MC

InvestorDaily

Diversity needs to be preserved as the consolidation trend in superannuation accelerates, a fund manager has warned, fearing regulators’ pressure on funds to merge could kill competition. APRA has encouraged the movement, urging small and underperforming funds to amalgamate and save their members from “suffering” further deterioration. The executive director of the regulator’s new superannuation department, Suzanne Smith, said funds should also be looking to simplify their offerings.

The House of Representatives standing committee on economics interrogated super funds for the first time last week. During the hearings, government MPs focused largely on the findings of the Productivity Commission, which estimated there are 40,000 super products available to consumers in the Australian market. Labor MP Andrew Leigh noted in a typical supermarket, there are 20,000 to 25,000 products available.

Investors demand climate change action

Posted by Anton Murray Consulting on . Posted in Funds Management MC

InvestorDaily

Financial industry heavyweights have called on governments and businesses worldwide to step up climate change efforts. A group of 415 investors who collectively manage assets worth US$32 trillion have called on governments to take stronger actions to meet goals as set out in the Paris climate agreement. The statement from the Institutional Investors Group on Climate Change was first launched in June ahead of the G7 summit in Canada but has been reissued to coincide with the current negotiations happening in Poland.

Backers of the statement include pension funds, asset managers, insurance companies and more, all calling on governments to do more to limit global warming and sets out the measure’s investors need to see to help them further shift their portfolios. “Much more needs to be done by governments to accelerate the low carbon transition and to improve the resilience of our economy, society and the financial system to climate risks,” the group said in a statement. The group has said actions like phasing out thermal coal power and fossil fuel subsidies were needed and leading on climate change would produce new jobs and investment opportunities.

The rest of this article can be found at investordaily.com.au.

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