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SUPERANNUATION, Discussing all aspects of Superannuation
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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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  
 
nipper
post Posted: Jun 22 2018, 09:32 AM
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Mags said elsewhere
QUOTE
I see/hear commentary running around, that this 'kind' of behaviour (massively overstating off market asset values) in lurking throughout the Superannuation industry.
- this may well be the case - because there is a fundamental contradiction between short and long term

Daily pricing (& mark to market) implies liquidity but = short term, tradable

Long term more aligns with aims of Super, and theoretically enhanced outcomes can be had by ignoring market noise, which is achieved by having unlisted assets. Which is where the danger of valuation error/ aggrandisement can come into play.



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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
 
blacksheep
post Posted: Apr 10 2018, 08:38 PM
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A slap on the wrist
Spaceship super fund brought back to Earth by ASIC

QUOTE
The tech-specialist superannuation fund, Spaceship, has been slapped with a $12,600 fine, as has Tidswell Financial Services, the trustee of the fund, for misleading claims made on the fund's website in 2017.

Spaceship, which targets millennials through social media, is backed by the co-founder of Atlassian, Mike Cannon-Brookes, through his investment vehicle Grok Ventures and a host of other tech and fintech entrepreneurs.

https://www.theage.com.au/money/super-and-r...410-p4z8q7.html

Spaceship shows there's no room for poor disclosure

QUOTE
But as we've seen in cases such as GetSwift, Big Un and even Blue Sky Alternative Investments, a good story must be backed up with real substance and real disclosure if you are going to ask real people – not institutions, or venture funds, but average, normal, time-poor investors – for real money.

Read more: http://www.afr.com/brand/chanticleer/space...z#ixzz5CGTQC5FA




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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington
 
nipper
post Posted: Mar 20 2018, 09:03 PM
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the hit to retirement incomes (cont.)

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The government has signed off on the semi-annual, inflation-linked increase in the government pension. The single age pension (total) homeowners pension has lifted for singles from $894 per fortnight to $907 per fortnight — for couples the same figures moves to $1,348 to $1,368

For self-funded retirees facing lower incomes, it means they will watch as government-funded pensions go up.

Retirees who occupy the notorious deadspot — between $400,000 and $600,000 in super — where their self-funded pension offers an annual income only marginally better than the government pension, will now see more reason to quit their efforts to be independent of government welfare.

.... especially if they have a SMSF and/ or have otherwise structured their affairs to take advantage of the franking. I would suggest there are far more in this group than the 'wealthy retirees' so identified by the ALP, and the indignation is real, based on several realities:
1. More changes, that are deleterious. Self-funded retirees, who put aside assets in good faith, will lose money under the changes.
2. Once retired, just how does one replenish the lost income?
3. Rational retirees will restructure their affairs to access the pension, if feasible.



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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: Mar 17 2018, 03:18 PM
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The hit to retirement incomes contained in [the Labor proposal to cancel cash refunds for excess dividend imputation credits] will not only affect the very wealthy, but substantially damage the lifestyles of many retirees who have prudently saved and are carefully drawing down on their retirement savings.

Refundable franking credits have been a well-established principle for nearly two decades, having been introduced on July 1, 2000, and self-funded retirees have understandably built their retirement income strategies around this. All these people want is certainty with the superannuation system. They had to contend with the enormous changes that took effect on July 1, 2017. Among these changes were a reduction in caps across both concessional (pre-tax) and non-concessional (post-tax) super along with the imposition of tax on individual earnings on amounts of above $1.6 million.

They also had to contend with the reduction in access to pension benefits — the tightening of so-called taper rules — which were introduced on January 1, 2017.

Now Labor's proposal will force them to rethink their retirement income strategies — yet again....

The simple fact is this proposal unfairly targets one sector of the community who have been diligent in saving to be self-sufficient in retirement. SMSFs put strategies in place under the existing rules only to find that politicians have again proposed to shift the goalposts. Aside from the personal financial pain many retirees will suffer, the changes to dividend imputation could have unforeseen consequences. It's almost inevitable to lead to a shift in SMSF asset allocation....

When compulsory superannuation was introduced in 1992, the primary goal was for people to save to become self-sufficient in retirement. Financial incentives were put in place to ensure this happened, and people all over the country took the government at its word and structured their financial affairs to this end....
https://www.theaustralian.com.au/business/w...b47041b3655571e

Andrew Conway, CEO of the Institute of Public Accountants, said: "Self-funded retirees or prospective self-retirees who seek to invest to secure a self-funded retirement plan, alleviating pressure on a government-funded pension system, should be incentivised, not penalised."



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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: BobE  boylep  
 


nipper
post Posted: Aug 29 2017, 08:23 AM
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QUOTE
As part of its ongoing surveillance of advertising promotional material from all super funds, the Australian Securities and Investments Commission's investment managers and superannuation executive leader Gerard Fitzpatrick confirmed he was "monitoring developments" emanating from the entry of new funds. ASIC has not taken any specific actions.

"New and innovative super products are subject to the Corporations Act or ASIC Act, in the same way as established funds," Mr Fitzpatrick said. "We have powers that we can use, including stop orders or infringement notice powers, where there is disclosure that is defective or is misleading to consumers."

.... [K]ey personnel from the Australian Prudential Regulation Authority fielded questions about start-up superannuation funds and confirmed they are also on "close watch" at an industry briefing on operational governance legislation last week.

Mr Fitzpatrick said while it was "aware of the concerns" about the fees being charged by some of the newer super funds, it had no direct concern over how the higher fees may impact the super balances of younger members.

"ASIC doesn't set fee limits – we are focused on confident and informed consumers having disclosure that meets the fee and cost disclosure requirements in the Corporations Act and that the fees and costs are not described in a misleading way," he said.

The chief executive of the Australian Institute of Superannuation Trustees Eva Scheerlinck said regulators have a responsibility to ensure the new entrant's offerings are consistent with their "marketing pitch".

"This is especially important when the fund is pitching to young people who will have super invested for another 40 years or so. Most of these start-ups are operating in the less-regulated Choice environment where the trustees have fewer statutory obligations," she said. "In terms of the investment offerings, are they really that unique and worth the higher fees that some of these new entrants are charging?"

Common to these newer outfits [such as Spaceship, Grow Super, Zuper, Human Super and Mobi Super] is propensity towards outsourcing key elements of the fund's functions, including investment and trusteeship to different providers. Companies such as ASX-listed Onevue's Diversa and Trustee Partners with its related entity Tidswell Financial are the trustees behind many of the new funds.

Mr Fitzpatrick said while it was supportive of new entrants and emphasised that outsourcing is a common feature of the super industry, he also said responsibility for disclosure rests with the trustees, rather than those marketing the funds.

"We expect it to be clear to consumers who they are dealing with when they acquire a financial product of any sort, including a super interest," he said. "Managing outsourced service providers is a risk in the professional trustee model as it is for other trustees. We expect these trustees to manage the risks that arise from having outsourced parties. We would be concerned if we found a trustee was not taking responsibility for the conduct of a third party."

AIST's Ms Scheerlinck said "while it is great to see young people engage with super, many may not be aware that the product they have signed up to is significantly different in structure to the traditional super fund model where the trustees and fund operations are under the one roof and there is strong connection with members".

ASIC uses monitoring services for real-time analysis of advertising and uses social media analytical tools to help it search media for promotional material related to particular funds.

- lipstick / pig interface



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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  
 
nipper
post Posted: Nov 25 2016, 08:12 AM
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QUOTE
One of the biggest emerging Australian investment issues is the performance of "stable" and "conservative" super fund options, which for the first time in a long time are reporting negative returns.. In the month of October, AustralianSuper's "stable" and "conservative balanced" pre-mix options both fell by 0.34 per cent and 0.68 per cent as equities and fixed-rate bonds incurred concurrent losses in a reversal of the widely-assumed negative correlation between these markets.

A January 2015 research report by actuary Milliman and Innova Asset Management's Dan Miles highlighted the flaw in the popular myth that fixed-rate bonds are insurance against equities risk. The authors found that since 1885, the correlation between the rolling three-year Australian equities and 10-year Australian government bond returns was normally positive.

"One of the underlying assumptions of the [standard] 60/40 [split between stocks and bonds] is that equities and bonds are negatively correlated and stable," the report said. "The problem is that this is not always the case. From the 1960s to 2000, the correlation was largely positive in both falling markets (such as the 1970s) and rising markets (1982 onwards)."

The period since 2009 has been the most unusual over the last 130 years: there is no precedent for the strongly negative correlations that have been observed. It is not therefore clear that this historical anomaly should be used as the basis for future asset allocation.

"Some conservative super fund options have ended up with excessive allocations to low-yielding, high-duration government bonds and aren't delivering the defensive return members expect," says Alexander Austin, a long-time super fund adviser who now runs infrastructure investments. "The idea was to build more stability into conservative super options through lower allocations to risky equities and higher weights to defensive assets," he says.

"This approach works well when returns between fixed-rate bonds and equities are inversely related, but it fails if fixed-rate bond and equity returns are correlated, as they were in October and could continue to be if we see a normalisation in long-term rates and/or a period of stagflation."
- Christopher Joye in the AFR

-the 'new normal' is anything but. Old ideas and assumptions about asset allocation (and returns) are out the window ... and I reckon large superannuation funds with lots of members and billions under management are too big to avoid the iceberg.



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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
 
flower
post Posted: May 13 2013, 10:14 AM
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In Reply To: mullokintyre's post @ May 13 2013, 08:20 AM

QUOTE
WalkerMy broker ord minett has set up a US denominated account with perishings


Mick, you don't happen to mean Pershing Securities Australia do you? Because if you do from what I can see Pershing are the clearing agents for trades executed through Trader Dealer as broker, so in theory anybody with a TD trading account presumably may have that ability without even realising it -------may be worth a call to Trader Dealer to find out.



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Combining Fundamental comments with Fundamental charts.
 
mullokintyre
post Posted: May 13 2013, 08:20 AM
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In Reply To: walkerjones's post @ May 11 2013, 11:58 AM

Howdy WalkerMy broker ord minett has set up a US denominated account with perishings. I have bought eBay, apple, citi , Johnson and Johnson, Pfizer, JPM to name a few. I have also bought Canadian pacific from Canada obviously, and a Spanish electricity generation company, so its not restricted to US shares.. All through the same US account. Very simple , they send a quarterly statement that I incorporate into the smsf records, and my auditor is quite happy with the info they provide.
Mick




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sent from my Olivetti Typewriter.
 
 


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