Archive for category: Media releases

Research House Lonsec has announced significant changes to its working policies, in response to the insights gained during the COVID shutdown and feedback from its staff.

The necessity of working from home during the pandemic showed that staff were able to successfully carry out their regular daily tasks from remote locations. It has helped redefine what time in the office actually looks like and what purpose it serves.

Whilst Lonsec still believes that genuine one-to-one interaction with colleagues is extremely valuable in building culture, relationships and sharing knowledge and ideas, this does not need to be every day. As a result, the company is permanently moving to a hybrid model, of at least two days in the office each week, and working from home the other days. For some roles, that do not require regular attendance in the office, employees are able to request a move to ‘remote’ locations and this has resulted in some staff now being located in Queensland.

This ability to work from ‘anywhere’ for short periods, has been extended to all staff, with them now having the option to work from anywhere in the world, for up to 4 weeks per year. This has been particularly welcomed by the many Lonsec team members not originally from Australia, or with family overseas. In further recognition of Lonsec’s cultural diversity, allowance has been made for those team members who may celebrate religious festivals other than those typically recognised with an Australian public holiday, by allowing them to work current public holidays and take off dates of their choosing.

Chief Executive Officer, Michael Wright said “considerable thought and time was put into developing our Lonsec@Work program. We believe strongly in supporting our employees’ broader wellbeing and believe that these significant, and industry leading benefits will enable us to attract and retain the best employees, and to genuinely allow staff to choose and enjoy the work life balance that works best for them”.

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For more information, contact:
Rob Hardy
Robert.Hardy@lonsec.com.au
1300 826 395

Lonsec has welcomed key senior appointments with Mike Wright joining as CEO and Kevin Brennan as Chief Information Officer (CIO). These appointments follow the recent renewal of the Lonsec board.

Mike has over 25 years’ experience in leading businesses and teams within Financial Services and joined from Xplore Wealth Ltd (ASX: XPL.AX), where he was CEO and successfully led the friendly takeover to Hub24 (ASX: HUB.AX), a leading independent investment platform.

Mike has set himself an ambitious challenge for his first 100 days with the business, meeting with all 100+ employees, key partners and clients and says, ‘At a time when the financial services industry is going through so much change, it is incredibly exciting and reassuring to join a company like Lonsec that is so committed to supporting Advisers and Funds through industry changes.’

Mike joins at a dynamic time for Lonsec, with the Lonsec Managed Accounts hitting $2bn funds under management in July 2021 (up from $1bn FUM in October 2020), as well as being fittingly placed to support Advisers and their clients focus on sustainable and ethical investment strategies.

Lonsec has been at the forefront of supporting increased investor appetite for sustainable and ethical investments that also provide a solid return. In response, they developed the Lonsec Sustainable Managed Accounts to provide greater choice for clients seeking investment strategies that align with their personal values and demonstrate strong environmental, social and governance (ESG) practices.
Unique in the market, Lonsec Sustainable Managed Accounts combines both ESG, which focus on the underlying manager’s process to ESG factors and Sustainability measures, which focuses on the funds positive impact on the world.

The Lonsec Sustainable Managed Accounts have just been added to the Macquarie Wrap Platform and are also available on Hub24 and Netwealth.

Lonsec is also fulfilling its thought leadership mandate by launching a Sustainability program to continue to educate investors. Lonsec’s Head of Sustainability, Tony Adams says ‘With the Lonsec Sustainability program, we want to help financial advisers and their clients take a sustainable approach to investing by sharing insights and research powered by Lonsec and a range of industry leaders.’ Via webinars and articles, the Lonsec Sustainability program has recently covered subjects such as ‘greenwashing’ and how Advisers can start sustainable investing conversations with their clients. This is a partner program to the long running Lonsec Retire program, now in its ninth year.

Kevin Brennan is excited to be joining Lonsec as Chief Information Officer. Kevin brings more than 20 years’ experience running large technology teams in the wealth industry. His key focus will be to elevate the role of technology within Lonsec and drive a comprehensive technology and data strategy to transform its service architecture and further accelerate business growth.

Mike concludes, ‘We are so fortunate to be in a strong position to continue to honourably help Advisers, Managers and investors with insights and solutions to help them navigate the immense challenges that many of them face and share in common.’

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For more information, contact:

Rob Hardy
Robert.Hardy@lonsec.com.au
1300 826 395

The remarkable recovery in super fund’s performance continues with another strong month of returns despite a slower vaccine rollout than many had hoped for and some regulatory uncertainty around the use of some vaccines.

According to SuperRatings data, the median balanced option rose an estimated 2.0% in March, while the median growth option rose an estimated 2.4% and the median capital stable option rose an estimated 0.9%. Over the 2020-21 financial year to date, the median balanced option returned 12.2%, reflecting the strength and speed of the post-pandemic recovery, which extended through to the end of the March quarter.

As Australia confronts the short-term effects of the pandemic, members should expect markets to remain volatile, but the theme of 2021 is certainly one of ongoing recovery as the jobs market improves and economic activity picks up once again.

For younger members, long-term trends like the digitisation of economies and work automation—themes sped up by the pandemic—may prove to have the biggest impact on the growth of their retirement savings.

“The March returns data reinforced the success that super has seen in rebuilding from the depths of the pandemic last year,” said SuperRatings Executive Director Kirby Rappell.

“The real bright spot has been the bounce back in the labour market, which has restored confidence to households and helped reboot consumer spending. The reopening of the economy and the low or zero rates of community transmission we’ve experienced in Australia in recent months have galvanised the recovery.”

Accumulation returns to end of March 2021

Source: SuperRatings estimates

Pension returns were also positive in March. The median balanced pension option returned an estimated 2.1% over the month and 13.2% over the financial year to date. The median pension growth option returned an estimated 2.5% and the median capital stable option gained an estimated 1.0% through the month.

Pension returns to end of March 2021

Source: SuperRatings estimates  

Thursday’s labour force figures continue to demonstrate the strength of Australia’s recovery. A further 70,700 jobs were created in March, taking the unemployment rate 0.2 points lower to 5.6%.

With the critical JobKeeper support now at an end and banks requiring mortgages to be serviced after a brief hiatus for those in need, it remains to be seen what the immediate economic fallout will be, but so far households appear to be holding up well.

“The vaccine story has been key to the recent rise in markets and super fund balances,” said Mr Rappell.

“However, there will likely be a period of adjustment, including some scarring effects from business closures and job losses, that we’ll need to navigate as we enter the new normal, but these should prove temporary. Overall, while the pandemic is certainly not over, we do foresee a period of greater stability for members.”

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Warnings: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to “General Advice” (as defined in the Corporations Act 2001(Cth)) and based solely on consideration of the merits of the superannuation or pension financial product(s) alone, without taking into account the objectives, financial situation or particular needs (‘financial circumstances’) of any particular person. Before making an investment decision based on the rating(s) or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances, or should seek independent financial advice on its appropriateness. If SuperRatings advice relates to the acquisition or possible acquisition of particular financial product(s), the reader should obtain and consider the Product Disclosure Statement for each superannuation or pension financial product before making any decision about whether to acquire a financial product. SuperRatings research process relies upon the participation of the superannuation fund or product issuer(s). Should the superannuation fund or product issuer(s) no longer be an active participant in SuperRatings research process, SuperRatings reserves the right to withdraw the rating and document at any time and discontinue future coverage of the superannuation and pension financial product(s).
Copyright © 2021 SuperRatings Pty Ltd (ABN 95 100 192 283 AFSL No. 311880 (SuperRatings)). This media release is subject to the copyright of SuperRatings. Except for the temporary copy held in a computer’s cache and a single permanent copy for your personal reference or other than as permitted under the Copyright Act 1968 (Cth.), no part of this media release may, in any form or by any means (electronic, mechanical, micro-copying, photocopying, recording or otherwise), be reproduced, stored or transmitted without the prior written permission of SuperRatings. This media release may also contain third party supplied material that is subject to copyright. Any such material is the intellectual property of that third party or its content providers. The same restrictions applying above to SuperRatings copyrighted material, applies to such third party content.

November was the strongest month for superannuation in 2020 and the 8th consecutive month of positive returns for members.

As COVID-19 restrictions ease nation-wide and investors look forward to the approval and distribution of a vaccine, share markets globally have pushed to record highs, delivering windfall gains for super members.

According to estimates from leading superannuation research house SuperRatings, the median balanced option returned 4.9% in November as members enjoyed an early Christmas gift that has put them back into the black over the course of a volatile and uncertain year.

Since the start of 2020 the median balanced option has delivered 2.3% and is on track to finish the year in positive territory. Super has bounced back strongly in the second half of the year, returning 7.5% from the start of July to the end of November, reversing the large falls back in February and March.

According to SuperRatings data, the median growth option returned an estimated 6.2% in November and 2.4% over the calendar year, while the median capital stable option returned an estimated 2.0% in November and 1.7% over the calendar year.

“We’ve had a watershed month for super and hopefully this strong performance can continue through to the new year,” said SuperRatings Executive Director Kirby Rappell.

“Given the world is battling a pandemic that has resulted in large sections of the economy being placed in lockdown, the results are remarkable. This is the year super proved its worth once again and reminded us why it is so critical to our economic success.”

Accumulation returns to end of November 2020

Source: SuperRatings estimates

Pension returns had a similarly strong month. The median balanced pension option rose an estimated 5.4% in November and 2.6% over the calendar year. The median pension growth option rose an estimated 6.8% in November and 2.6% over the calendar year, and the median capital stable pension option returned an estimated 2.3% in November and 2.0% over the calendar year.

Pension returns to end of November 2020

Source: SuperRatings estimates  

The global recovery is underway and is looking sufficiently V-shaped, but recent economic news has been mixed. Infection rates have risen in the US and Europe, causing a loss of momentum, but news of successful vaccine trials have boosted confidence.

The UK has begun rolling out the Pfizer-BioNTech vaccine, while Australia and the US are preparing to do the same once the vaccine is approved. Meanwhile, China has ramped up its trade conflict with Australia, putting tariffs of up to 200% on Australian wine and suspending the importation of Australian beef, barley and timber.

“Australia’s success in containing the coronavirus has put us in an enviable position, but there are still significant risks at play. The pandemic is not yet defeated and there are geopolitical issues weighing on the outlook. Members should be optimistic but prepare themselves for potential surprises as we head into 2021.”

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Warnings: Past performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to “General Advice” (as defined in the Corporations Act 2001(Cth)) and based solely on consideration of the merits of the superannuation or pension financial product(s) alone, without taking into account the objectives, financial situation or particular needs (‘financial circumstances’) of any particular person. Before making an investment decision based on the rating(s) or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances, or should seek independent financial advice on its appropriateness. If SuperRatings advice relates to the acquisition or possible acquisition of particular financial product(s), the reader should obtain and consider the Product Disclosure Statement for each superannuation or pension financial product before making any decision about whether to acquire a financial product. SuperRatings research process relies upon the participation of the superannuation fund or product issuer(s). Should the superannuation fund or product issuer(s) no longer be an active participant in SuperRatings research process, SuperRatings reserves the right to withdraw the rating and document at any time and discontinue future coverage of the superannuation and pension financial product(s).

Copyright © 2020 SuperRatings Pty Ltd (ABN 95 100 192 283 AFSL No. 311880 (SuperRatings)). This media release is subject to the copyright of SuperRatings. Except for the temporary copy held in a computer’s cache and a single permanent copy for your personal reference or other than as permitted under the Copyright Act 1968 (Cth.), no part of this media release may, in any form or by any means (electronic, mechanical, micro-copying, photocopying, recording or otherwise), be reproduced, stored or transmitted without the prior written permission of SuperRatings. This media release may also contain third party supplied material that is subject to copyright. Any such material is the intellectual property of that third party or its content providers. The same restrictions applying above to SuperRatings copyrighted material, applies to such third party content.