POWERED BY MOMENTUM MEDIA
Australia reaps benefits of superannuation change
The Australian superannuation industry's evolution from a largely defined benefits environment to defined contributions has placed it at a distinct advantage to other nations now seeking to handle burgeoning deficits, according to new data released by Towers Watson.
Towers Watson Australia director of investment services Graeme Miller said governments and corporate sponsors of defined benefit funds through the developed world continued to face considerable challenges in dealing with deficits.
He said that in Australia, the impact of poor asset returns and falling bond yields had generally been passed from corporate and government balance sheets to individuals - a trend started in Australia with the inception of the Superannuation Guarantee in 1992, "and now other countries and organisations around the world are following suit".
The Towers Watson research pointed to the fact that Australian pension assets were among the developed world's fastest growing, with an annual growth rate of 17 per cent measured in US dollars over the past ten years.
It said the growth had been propelled by the strong Australian dollar, Australia's mandatory Superannuation Guarantee system, and investors' relatively high allocation to growth assets such as equities.
It said Australian funds continued to have the highest allocation to equities at 50 per cent.
Recommended for you
Super funds have built on early financial year momentum, as growth funds deliver strong results driven by equities and resilient bonds.
The super fund has announced that Mark Rider will step down from his position of chief investment officer (CIO) after deciding to “semi-retire” from full-time work.
Rest has joined forces with alternative asset manager Blue Owl Capital, co-investing in a real estate trust, with the aim of capitalising on systemic changes in debt financing.
The Future Fund’s CIO Ben Samild has announced his resignation, with his deputy to assume the role of interim CIO.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
76.97 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
76.46 3 y p.a(%)
3
UBS Solactive Global Pure Gold Miners UCITS ETF Dis USD
51.13 3 y p.a(%)
4
Global X GlobalX FANG+ ETF
45.15 3 y p.a(%)
5
Select Baker steel Gold Institutional
43.78 3 y p.a(%)
