Few would disagree that a strong regulator is required for a strong superannuation system. But APRA’s myopic focus on cost to members means its $70,000 Christmas party is unlikely to help its reputation.
Good investing requires real sacrifices, according to Oaktree’s Howard Marks, but you can’t expect to be compensated just for making them.
Sunsuper scores three wins in a row
Sunsuper is about to pick up its third-straight new big super fund client, the $2 billion Bluescope Steel Super corporate fund, which had been outsourced to Total Risk Management and Russell Investments.
The deal, expected to be announced this week, follows Sunsuper’s successful negotiations last year for the $1.2 billion Reserve Bank of Australia staff fund, which had maintained some internal investment oversight while outsourcing administration and other components, and the more recently announced takeover of Kinetic Super, a multi-employer fund.
The Kinetic deal, announced last month and which involves about $3 billion to be transferred, and Bluescope, with $2 billion, will take Sunsuper to a total of more than $47 billion under management.
Coincidentally, each of the three funds is currently using Link Group’s administration services. Kinetic has about 250,000 members, Bluescope about 6,500 members and the RBA fund about 3,000 members. The transfers of each will continue over the next few months.
Total Risk Management (TRM) is a Russell subsidiary which provides RE and fiduciary oversight for the Russell funds management services. David Solomon, the well-known actuary, is chair of both TRM and Bluescope Steel Super.
Bluescope is a combined DC and DB fund with several investment options. Interestingly, Russell enhanced its service offering to the fund only last year.
Solomon said in the fund’s annual report last year: “As part of our commitment to meeting your needs, we conducted an extensive member research program in June 2016. You told us that superannuation is important to you, and it will be one of your biggest assets in retirement. Many of you want to receive more information about investing and savings, as well as guidance and tools to help you prepare for the future with confidence.
“In response we’ve made some enhancements. In September 2016 we introduced a new phone-based advice service. It offers you personalised advice based on your individual circumstances, and is available at no cost. You can get help with investment choices, planning for retirement, making extra contributions, insurance cover and more…
“Finally, in early October we launched the new ‘Retire Ready’ tool on the fund website. This easy-to-use projection tool can help you find out how much you’ll need at retirement to achieve your desired lifestyle, whether you’re on track, and provides some simple strategies to make your plans a reality.”
