News

News

Super funds on track to own 60% of Aussie equities

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

InvestorDaily

Deloitte has warned that superannuation funds will dominate the ASX within 20 years as total assets hit $10.2 trillion in 2038. Despite ongoing volatility in investment markets, and historically low inflation and cash rates, the Australian superannuation industry has continued to grow. Total superannuation assets rose from $2 trillion at 30 June 2015, to $2.7 trillion at 30 June 2018.

In its latest modelling, Deloitte projects Australia’s total superannuation assets will continue to increase over the next 20 years to $10.2 trillion by 2038. Diane Somerville, principal, Deloitte Actuaries & Consultants and author of The Dynamics of the Australian Superannuation System – The next 20 years to 2038, said these projections reflect the legislated increases in the superannuation guarantee from 9.5 per cent to 12 per cent by July 2025, with the next increase to 10 per cent scheduled to occur from 1 July 2021. Ms Somerville added that an important caveat to the projected 275 per cent growth in total superannuation assets to $10.2 trillion is that the current low interest rate environment, that has continued to prevail both in Australia and globally for more than five years, is likely to remain the “new normal”.

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

Future Fund to hire less as data project goes live

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

Investment Magazine

The Future Fund has launched its new investment data management platform, capping an initial three-year project to upgrade the $210 billion sovereign wealth fund’s technology capabilities. While still in the production phase, the platform centralises both public and private markets data across the fund to cut down on the “thousands” of active spreadsheets in use by the investment team. Chief executive officer David Neal said that while no jobs would be lost, the technology did mean that they would not need to hire as many people in the future.

“We should have started a little earlier with the amount of money we have got,” Neal conceded at a recent Investment Magazine conference. “We calculated that we had many person hours being done on data management that was embedded in teams, so we just wanted to remove it. It was insane that there are so many spreadsheets in regular use and that cannot be a good thing.”

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

Economy in need of more stimulus: Oliver

Posted by Anton Murray Consulting on . Posted in Market Commentary

InvestorDaily

The Australian economy grew 0.4 per cent in the September quarter according to the ABS, but growth is still around its lowest levels since the GFC.“The economy has continued to grow, however the rate of growth remains well below the long-run average,” said ABS chief economist Bruce Hockman. That sentiment was echoed by AMP chief economist Shane Oliver, who said that it was unlikely the economy would meet the RBA’s growth forecast of 2.3 per cent for the year to December.

The economy would need to grow 0.8 per cent in the current quarter to achieve the RBA forecast, according to Mr Oliver. “The only real source of strength in the Australian economy is public sector spending and net export growth,” Mr Oliver said in a note. Mr Oliver noted that private spending – consumer spending, dwelling investment, and business investment – was falling, acting as a drag on the economy.

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

Finance retains highest gender pay gap

Posted by Anton Murray Consulting on . Posted in Market Commentary

InvestorDaily

Financial and insurance services has remained the sector with the highest total remuneration gender pay gap at 29.3 per cent, according to new data from the government’s Workplace Gender Equality Agency. However, as reported by this year’s Australia’s gender equality scorecard, the finance sector’s pay gap has decreased year on year from its previous 30.3 per cent in 2019, and it has fallen each year from 2013-2014. The national gender total remuneration gap now sits at 20.8 per cent, down 0.5 per cent from last year. On average, Australian men are taking home $25,679 more than their female counterparts every year.

Meanwhile the difference between men and women in average total remuneration for financial services in 2018-2019 was $48,318. The gap in average base salaries sat at 22.2 per cent, or $27,111. The national average difference for base salary was 15.5 per cent, or $15,176 per annum. Finance was among the industries with a lower proportion of women in management compared to women in the workforce, with around 54.7 per cent of employees being women and 41 per cent of leadership roles represented by females.

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

Banking, finance voted most unethical sector

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

InvestorDaily

Australians have ranked banking and finance as the worst ethically performing sector, with fund managers being rated among the 10 least principled occupations. The findings were published in the Governance Institute of Australia’s Ethics Index for 2019, which has been based on a survey of more than 1,000 people about their views on ethical issues and conduct. Banking and finance had the lowest ethical rating (as voted by 31 per cent of respondents) and the highest unethical rating (49 per cent.)

Media and government followed the industry at the bottom of the charts. Governance Institute chief executive Megan Motto said the Hayne commission still has a hold on the public’s perception of finance. “The banking and finance sector continues to suffer from credibility issues following the Royal Commission into Misconduct [in] the Banking, Superannuation and Financial Services Industry,” Ms Motto said.

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

Our clients include

* Prior invoiced clients across the region.