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SUPERANNUATION, Discussing all aspects of Superannuation
nipper
post Posted: Sep 22 2020, 09:11 PM
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The Future Super marketing strategy and target audience are obvious; the homepage, for example, is dominated by an image of hope filled Millennials jumping for joy in back to front caps in front of solar panels and clear blue sky. The fund has been found to charge relatively high fees despite being invested overwhelmingly in passive, low cost products (namely ETFs run by Betashares). Moreover, its large allocation to those products has raised questions about whether commercial ties to the manufacturer may be driving risky outcomes for members.

Its subfunds, Verve Super and Cruelty Free Super, another fund held by Diversa Trustees and to which Future Super is a sub promoter and sub investment manager, also adopt a marketing strategy designed to appeal to particular cohorts.


Verve Super advertises itself as for women, by women. Verve Super has adopted the World War II icon Rosie the Riveter as its logo and sponsored the podcast of feminist Clementine Ford.Along with a $93.60 annual membership fee, Future Super charges a combined administration and investment fee of 0.98 per cent per annum, made up of a 0.33 per cent direct and indirect investment fee, and a 0.65 per cent administration charge. Verve Super fees are higher, charging members the same flat annual membership but an administration and investment fee of 1.19 per cent a year.

On a balance of $50,000, Future Super would cost members $583.60 a year, while Verve Super members would pay $688.60, well above many other funds.


Cruelty Free Super promises superannuation with no nasties, aimed at the growing demographic of vegan Australians. Its website features a dreadlocked young woman hugging a donkey in the snow.
In a significant event notice letter sent to members, Cruelty Free Super said it would reduce overall fees from 01 October, with the investment fee falling from a flat 1.25 per cent per annum to 0.93 per cent a year. However, Cruelty Free has jacked up the administration fee from 0.64 per cent to 0.94 per cent a year.

This means the average member with a balance of $50,000 will be charged $992 a year, down from $997, a reduction of $5, and still around double the fees of major industry super funds.

- come on down,




( https://www.afr.com/companies/financial-ser...20200610-p5515x )



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Aug 4 2020, 05:18 PM
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QUOTE
Former prime minister and treasurer Paul Keating has blasted the Morrison government scheme allowing early access to retirement savings and warned the Retirement Income Review to keep its hands off the legislated increase in the superannuation guarantee to 12 per cent.

The controversial early release scheme, which has seen consumers pull almost $30 billion out of their superannuation balances and has been extended by three months to December, betrays the foundational premise of the compulsory super system.

It is a breach of the preservation rules to just let anyone take out their money willy-nilly, Mr Keating told a virtual event hosted by lobby group Industry Super Australia on Tuesday

- clearly a brainfart from a person on a very generous defined benefit scheme



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: Rod  mullokintyre  
 
mullokintyre
post Posted: Jul 19 2020, 09:40 AM
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From Catallaxy

QUOTE
Kevin Rudd. What can be said that has not already been said. Mr Rudd has got to be the most intelligent, wise and insightful Prime Minister Australia has ever had. It must be so because he continues to tell us.

While Mr Rudd sometimes has some interesting things to say about foreign affairs and China, once he strays outside this lane he, like most politicians, is usually wrong but never in doubt.

Writing recently in defence of superannuation, Mr Rudd had the following things to say:

Withdrawing $20,000 might not seem like a big deal to a 35-year-old today, but that investment would have been worth between $130,000 and $260,000 in retirement, according to Deloitte Access Economics.

Well this is how compounding works Mr Rudd. For $20,000 to be invested today to return $130,000 and $260,000 in 30 years (assuming this 35 year old retires at at 65), that requires an average compound investment return of 6% to 9% every single year. And that is after costs and tax. Thats a very impressive investment performance given, by comparison, term deposits today are paying all of 1%. If you are lucky.

This return is also nominal, as in before inflation. So assuming an annual 2% rate of inflation over these 30 year (rather wishful given the money printing going on), that 6% to 9% would need to be 8%-11% per annum before fees and tax to maintain purchasing power.

If this is the analysis prepared by Deloitte Access Economics, they need to leave the island. But that this analysis has not been questioned by our diligent media speaks for itself.

But this point from Mr Rudd is the essence. It is the truth that is spoken without realising it:

Our super system has become the envy of finance ministers, treasurers and the financial world.

Hell yes it is. It provides a giant money pot for finance ministers and treasurers and the financial world to constantly raid and clip.

Is our super system the envy of citizens and retirees around the world? That is the more relevant question. One might suggest that it is not.

It seems that many of the defenders and promoters of this super system are not actually customers of this system. Lets remember that Mr Rudd and Mr Keating are not part of this super super system. Their superannuation is generously underwritten by tax payers by way of a CPI indexed defined benefit scheme. A scheme that was so underfunded that the Future Fund needed to be set up at a HUGE costs to citizens.

Mr Rudd and his superannuation defenders seem to believe that the onus is on those opposed to the compulsion of superannuation to make their case. No its not.

In the end, every single government policy is backed up by agents of the state carrying guns. Every single policy. And because of this, the onus is on the government to make its case for a policy and not on those who disagree to make the case against.

Rather than writing on matters he has no real understanding of, perhaps Mr Rudd hop on a private jet and return back to his home in New York and resume his work on foreign policy.


Although he picks on K Rudd, as the medium for his derision, he could have picked any number of people pushing the "Sanctity of Super." barrow.
And as for the figures put out by Access, talk about ambitious!.
But then I presume they were commissoned by an entity that benefits from continued expansion of the super money pit.

Mick




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sent from my Olivetti Typewriter.
 
nipper
post Posted: Feb 1 2020, 11:05 AM
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In Reply To: nipper's post @ Aug 29 2017, 08:23 AM

Quite a few "fintechs" probably had the thought: "incumbents being challenged (Royal Commissions), 9% at least growth pa, some new clean software, let's just put our hands out and grab some of that."

The Spaceship adventure never really took off, despite the starpower promoters, and now Sargon Capital has gone into receivership
QUOTE
Melbourne-based Sargon boasts it provides “trustee cloud infrastructure to power the world's next generation of funds and financial products”, with more than $55 billion in assets under trusteeship and supervision.

It tried reassuring clients overnight, with a note on its website saying business was unaffected as Sargon Capital was “a holding company” and “operating subsidiaries are not in any form of external administration”.

“Sargon confirms that assets held on behalf of clients are not at risk by way of the appointment of McGrathNicol and are protected by regulatory, legal and other protections,” the note said.

Gee, you'd hope the Trustee structure was robust enough to protect client assets!

OneVue Holdings OVH was hoping to offload some software to Sargon; now in trading halt



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Nov 3 2019, 12:15 PM
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QUOTE
"The 2019 Melbourne Mercer Global Pensions Index has rated the Australian retirement system as the third best in the world so there is a disconnect between the performance of the industry and how members feel ... by better educating members on the improvements they've achieved and the relative strengths of the Australian super system, funds could improve their members' retirement confidence."

It's far more than the ongoing industry fund versus retail fund stoush. Six leading figures have weighed into the super debate again in recent days, including:

Finance Minister Mathias Cormann admitted people were sick of politicians "tinkering" with superannuation, and the Retirement Income Review "will not lead to any change". It will simply inform the public on how the super system operates.

Senator Jane Hume, Assistant Minister for Superannuation and Financial Services, said the superannuation system was "beleaguered by disengagement and opacity" and government has a moral obligation to make the system as efficient as possible.

Bill Kelty, the union executive credited with initiating the current super system, said former Treasurer Wayne Swan was a "miserable bastard" for only increasing the super guarantee (SG) by 0.5% during the Rudd-Gillard years. Kelty and Paul Keating would "go to their grave" fighting for the 12% SG.

Innes Willox, CEO of the Australian Industry Group, said the legislated 2.5% increase in SG to 12% needed to be weighed up against the cost to business of its implementation.

Paul Keating said, "Willox is kidding us ... Superannuation has revolutionised Australia. It is the greatest reform to capital markets in the history of the country. Only a government of indecipherable recklessness would upend or damage such a system."

Former Treasurer Peter Costello told a Citibank Conference that compulsory superannuation had failed because "there was not a lot of thought given to how it would be managed once it was in these funds and how it would come out ... We realise that fees were extraordinarily high, some of the products were no good, and at the end of all this, when you get your entitlement, there's still this huge gap as to 'what do I do now?'"

With such strong positions and vested interests, it's difficult to have an informed debate



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Sep 28 2019, 11:14 AM
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QUOTE
Josh Frydenberg has made a brave move into the quicksand of superannuation politics with the announcement of a retirement incomes review. This is, after all, the sector that may well have ­ensured the Labor Party lost the last election.

For the moment every potential change that has been suggested for our strong, but flawed, retirement system appears to be “on the table” in what will be a broad-ranging review that looks at the age pension, compulsory super and voluntary savings.

Hopefully, that means some of the more notorious black spots that pepper our system with a sense of unfairness will finally be tackled: how can it make sense that you are worse off (on a week to week income basis) having savings of between $600,000 and $800,000 than a pensioner who hasn't saved a penny
... Or at the other end, own a three million dollar home, have assets up to $380k, and receive a full pension.

one thing for sure, the pot is so large that there will be continued and continual investigations.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 

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nipper
post Posted: Sep 12 2019, 01:14 PM
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In Reply To: nipper's post @ Sep 28 2018, 04:03 PM

QUOTE
Sometime in the next year, if there is no major market fall, total assets in superannuation will hit $3 trillion on the way to a forecast $10 trillion in 20 years, as shown below. Not bad for a country with GDP of about $1.9 trillion. The entire market value of all listed companies in Australia is about $2.1 trillion. While super funds obviously invest in a wide range of other asset classes, super investments will increasingly move offshore.

Already, this is making a major contribution to Australia's current account balance, which recently went into surplus for the first time in 44 years. With foreign equity holdings reaching $1.5 trillion, Australian investors now hold a record $141 billion more foreign equities than the amount of Australian equities owned by foreigners.
https://www.firstlinks.com.au/?utm_source=W...950e9e-83781601



--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Aug 21 2019, 03:40 PM
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They can't help 'emselves !!!
QUOTE
What expenses are being recovered?

These deductions will recover expenses relating to Australian Prudential Regulation Authority (APRA) levies, the cost to implement regulatory changes (RCL) and Operational Risk Financial Requirement (ORFR) prudential standards.

- in super fund statements being sent out.

The first two can range between $40-150 in total, while for many accounts the ORFR is a percentage, expressed as bps, being 2.3
More you have; more you pay.



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Sep 28 2018, 04:03 PM
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QUOTE
.... [Australia's] compulsory super system just clocked up $2.7 trillion in assets. That's the equivalent of India's gross domestic product this year, and roughly the same amount of money Trump hopes will be repatriated by Fortune 500 companies in response to his tax cuts.

In the context of the Australian economy, super represents about 140 per cent of gross domestic product....
https://www.afr.com/personal-finance/supera...20180924-h15rzz



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
nipper
post Posted: Jul 25 2018, 12:18 AM
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QUOTE
Westpac’s (WBC) wholly-owned wealth arm BT Financial said it would be introducing a new cut-price 0.15 per cent asset administration fee for customers invested through the BT Panorama Investments and BT Panorama Super platforms, along with a flat account fee of $540 a year. On an average account, the move represents a fee cut of 40 per cent.

Analysts told shareholders rival platform providers, such as Netwealth (NWL), HUB24 (HUB), platform and financial advice specialist IOOF (IFL) and wealth giant AMP (AMP), would likely be forced to follow the move in order to retain market share.
... including 0.15 on the CMT!

Still got fund manager fees usually ripping along at 1+%, as well



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
 


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