Archive for category: Video

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Super Fund Update

We recently held our annual updates for Super Funds where we discussed the super landscape over the past year and the focus for SuperRatings this financial year. Watch a summary from Kirby Rappell, Executive Director of SuperRatings.

Disclaimer: Presentation issued by SuperRatings Pty Limited ABN 95 100 192 283 AFSL No. 311880 (SuperRatings). The information used in compiling this data comes from sources considered reliable and is not guaranteed to be accurate or complete. Past performance is not a reliable indicator of future performance. Any expressed or implied rating or advice presented in this document is limited to General Advice and based solely on consideration of the merits of the superannuation financial product(s), without considering any person’s particular financial circumstances. The reader should read the Product Disclosure Statement and seek personal advice before making a decision on the 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 Disclaimer: © SuperRatings Pty Ltd. All rights reserved. This presentation may also contain third-party material that is subject to copyright. To the extent that copyright subsists in a third party it remains with the original owner and permission may be required to reuse the material. Any unauthorised reproduction of this information is prohibited.

 

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SuperRatings Annual Survey

The SuperRatings annual request for information is just around the corner. We’ll be circulating the survey link shortly.

This is your fund’s opportunity to stand out in an increasingly competitive market. We’re reaching out to you ahead of time to ensure you start preparing for it now.

Your responses to the annual survey account for the majority of your fund’s ratings outcome, so we encourage you to give the survey the time and attention it deserves as this will give your fund the most accurate ratings possible.

Did you know that by completing the annual survey in full, you also maximise your fund’s chance at being nominated for an award at the annual SuperRatings award ceremony. This year, we have over 20 award categories, which is even more reason to ensure you complete the SuperRatings annual request for information.

If you don’t receive the link to the survey in the next couple of weeks, make sure to get in touch with your SuperRatings research analyst to ensure we send the link to the right person.

Kirby Rappell, Executive Director, SuperRatings

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SuperRatings Quarterly Insights – April 2023

It has been a busy start to 2023 for the industry, with regulatory change ongoing and the need to have the right frameworks to assess member outcomes over time more important than ever.

In this edition, we provide an update on SuperRatings’ annual review and research themes for the industry.

What are the pressures facing funds and who is harnessing their scale?

In meeting with funds across the industry, we saw a number of key themes emanating from our reviews. This video outlines some key findings including:

  1. Despite significant investment, funds are still struggling to define their value proposition.
  2. The correlation between net asset growth and operating expense growth is broken.
  3. Competition is heating up between funds, with a strong focus needed on how well funds are harnessing their scale.

Funds of all shapes and sizes face challenges and opportunities. In the current landscape, tracking and managing them is more crucial than ever.

 

Kirby Rappell, Executive Director, SuperRatings

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Administration Landscape Insights

As we look to the future of service delivery in the administration space, we believe supporting funds to enhance their operational efficiencies and drive down costs, the ability to integrate with non-core administration systems, technological capability and adaptability, strong contact centre capabilities, where applicable, and capacity in a merger-heavy operating environment, are key elements impacting successful administration service delivery.

Scott Abercrombie, Head of Superannuation Consulting

Any advice that SuperRatings provides is of a general nature and does not take into account an individual’s financial situation, objectives or needs. Because the information that SuperRatings receives about superannuation and pension financial products is from a number of sources, it is not guaranteed to be completely accurate. Because of this, individuals should, before acting on the information, consider its appropriateness having regard to their own financial objectives, situation and needs and if appropriate, obtain personal financial advice on the matter from a financial adviser. Before making a decision regarding any financial product, individuals should obtain and consider a copy of the relevant Product Disclosure Statement from the financial product issue.

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ESG Research Q&A

We found that most funds follow an ESG integration style approach while low carbon and climate dominate funds’ sustainability themes. This isn’t too surprising given we are seeing a large member focus among funds taking climate action. Another point of interest was that despite almost all respondents considering ESG factors in their investments, only a quarter of funds link portfolio manager key performance indicators to responsible investment practices.

Joshua Lowen, Market Insights Analyst
Camille Schmidt, Market Insights Manager

 

Any advice that SuperRatings provides is of a general nature and does not take into account an individual’s financial situation, objectives or needs. Because the information that SuperRatings receives about superannuation and pension financial products is from a number of sources, it is not guaranteed to be completely accurate. Because of this, individuals should, before acting on the information, consider its appropriateness having regard to their own financial objectives, situation and needs and if appropriate, obtain personal financial advice on the matter from a financial adviser. Before making a decision regarding any financial product, individuals should obtain and consider a copy of the relevant Product Disclosure Statement from the financial product issue.

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New MySuper Research Q&A

Can lifecycle MySuper products deliver on their promise of a lower risk position at retirement coupled with competitive returns over a member’s lifetime? Find out how we compare the universe of MySuper products irrespective of whether they follow a lifecycle or single-default strategy.

Bill Buttler, Senior Manager, Consulting

Camille Schmidt, Market Insights Manager, SuperRatings

Please see below a further insight by SuperRatings

‘Making Sense of MySuper Investment Options’

 

Can lifecycle MySuper options really deliver a Magic Pudding or is it all just pie in the sky?

Experience working with members and employers suggests a real lack of understanding of the difference in approach between a lifecycle product and the alternative ‘single strategy’ product type. Yet in a future environment where legislation such as Your Future, Your Super is designed to encourage members to compare performance and determine whether they should potentially change funds, it is fundamental that members should understand and be able to compare the two product types. Particularly, since 37% of the 75 MySuper products registered with APRA as at 31 March 2022 were designated as ‘lifecycle’ products.

Read More
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Performance Test Insights – September 2022

We found that 90% of trustee directed options are estimated to pass the performance test in its current form based on 30 June 2022 data. This is an improvement from the March 2022 data which estimated that 20% of the options assessed would have failed the test. The volatile market over the second half of the financial year emphasised the importance of diversification and long-term strategy within superannuation investments, as funds experienced unique conditions relative to earlier periods in the eight-year assessment.

 

Kirby Rappell, Executive Director, SuperRatings

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Tests of Tomorrow

We initially developed our tests of tomorrow following the Royal Commission to gain insight into the areas which may be focused on, should such an industry overhaul occur again, and we have continued to review and adjust these over time. Our suite of tests includes inactive account transfers, disclosure of fees, insurance and investment risk, legacy products, how well scale is being leveraged and retirement product development.

Kirby Rappell, Executive Director, SuperRatings 

 

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Corporate Super Landscape

With stapling reducing the flow of members defaulted into employer plans, funds need to focus on their acquisition strategies in this new environment and the channels through which to obtain members including corporates, direct acquisition and external advisers. 

 

Fees and investments continue to be key hygiene factors when selecting a default fund, we are seeing corporates adopt a more values-based overlay to their decision-making.

 

Camille Schmidt, Market Insights Manager, SuperRatings

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SuperRatings Stapling Impacts – November 2021

With the stapling changes taking effect from November 1 this year, the complete picture will take some time to emerge. We believe it is well intended to stop the proliferation of accounts, though we will see changes in terms of the profile of member accounts among funds going forwards.

Funds should consider how to engage with employers in relation to the changes and will need to emphasise the value of superannuation as an employee benefit, with the future of tailored employment arrangements unclear. We also expect meaningful engagement with a disengaged member base to be challenging.

Camille Schmidt: Market Insights Manager, SuperRatings

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Important Documents

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Important information: Any express or implied rating or advice is limited to general advice, it doesn’t consider any personal needs, goals or objectives.  Before making any decision about financial products, consider whether it is personally appropriate for you in light of your personal circumstances. Obtain and consider the Product Disclosure Statement for each financial product and seek professional personal advice before making any decisions regarding a financial product.