Australian Superannuation - Articles & White Papers
Articles and papers broadly covering superannuation management in Australia and New Zealand (both DB and DC pensions). The most read research on Australian superannuation covers such topics as long-term investing, superannuation governance, retirement readiness and the trends shaping Australia's superannuation industry. Other white papers, reports and surveys talk about New Zealand superannuation, inflation protection, independent directors, centralised portfolio management and other aspects of the current Australian pensions landscape. Papers which look at Australian asset allocation, as well as comparing Aussie Pension Funds to those in other regions of the world, are popular. Australian pension funds have been pioneers in infrastructure investing, and a case study on this topic has been particularly popular with pensions professionals.
The retirement dream for many is to retire early enough to enjoy the fruits of their labours. The reality however is that for many there isn't enough money in the bank to last the entirety of their retirement. This paper by Citi looks at the scope of the problem both on the private and the public side. The author examines the issue globally then makes some recommendations ...
This 60-page report investigates a variety of approaches that may be taken by institutional investors in order to find new long-term investment strategies. Examining the five key action areas (risk appetite statements, investment mandates, benchmarking processes, evaluations and incentives, and investment benefits), this paper's authors develop a framework for the improvement ...
This comprehensive 47-page paper by Willis Towers Watson provides invaluable insights into the financial state of the largest 300 pension funds in the world. The U.S. continues to hold its position as the country with the largest share of pension assets across the top 300 funds, representing 38.6% spread across 134 funds. Meanwhile, Canada has overtaken the U.K. as the fifth ...
This paper by PwC examines investment process best practices by global pension funds. It looks at growing asset allocation trends, regulations, governance models, and other drivers of change.
This study was commissioned by Future Fund, the Australian SWF. It aims compare best practices across leading asset owner funds with reference to benchmarks. The authors aim to reveal opportunities for idea sharing, development, and challenge between these funds. Eight specific focus areas emerge from the study: Culture, Diversity and EVP; Effective Decision Making; Long-Horizon ...
The Australian superannuation industry is now one of the largest retirement savings pools in the world with assets of around $2.2 trillion. This 42-page paper gives a helpful historical overview of the industry. It covers different areas: the history of superannuation, the current industry structure, market concentration and scale, trends in industry structure, and more.
This 38-report is a collaborative effort between the Australian Financial Services Council and UBS Asset Management. It provides an overview of the entire industry, including key information on specific areas (e.g. life insurance, superannuation, funds management, financial advice, etc) and the sector’s crucial role in the overall Australian economy.
This paper examines how asset owners have invested their knowledge capital and the implications that flow through the whole industry supply chain. Key areas considered include the institutional investment ecosystem, the new investment landscape, the consequences of asset owner innovation, etc.
Since the early 1990s, the pioneers in infrastructure investing have been Canadian and Australian pension funds. Globally, these funds currently have the highest allocation of assets to infrastructure. In this article, the authors compare and contrast institutional investors' experiences in Australia and Canada, examining the pension systems, infrastructure policies, the ...
In this edition of our quarterly letter Ian Lance looks at one of today's largest and yet least discussed issues: the extent to which different types of pensions across the globe are underfunded. After identifying the factors that led to this situation, he examines the potential implications of trying to deal with the shortfall and concludes they could have a very deflationary ...
Industry Super Australia (ISA) analysis of Australian Prudential Regulation Authority (APRA) ten year performance data to June 2016 shows, on average, funds offering fewer investment options performed better than funds that offered hundreds of options. Bank-owned retail super funds which offer an average of 651 investment options per fund, underperformed not-for-profit funds which ...
This 40-page paper has been jointly authored by Richard J. Bianchi, Michael E. Drew and Adam N. Walk. They examine the ERP concept (equity risk premium) particularly what is meant by 'the premium' for taking risk.
In this paper by Frontier Advisors, the authors discuss the most challenging and significant issues related to investment fees. They propose a number of strategies that might help the institutional investor get better value. They also highlight some recent positive outcomes on fund management fees.
Fund Convenor of SMF and Director of External Research Engagement
This paper examines the management of capacity from the perspective of an institutional asset owner running a multi-asset portfolio. It discusses how asset owners should manage capacity by using their flexibility to choose where and how they invest, in accordance with what best fits their size. One implication is that optimal scale ...
Fund Convenor of SMF and Director of External Research Engagement
This study examines in-house investment management by asset owners. It specifically focuses on the opinions and approaches of Australian superannuation (pension) funds, drawing on interviews with industry executives. A framework is proposed to assist asset owners to make and implement decisions to manage assets in-house, based on ...
The AIST commissioned SuperRatings, a superannuation research provider, to undertake analysis of the fee structures, asset allocation and investment performance of superannuation products across the industry, with the aim of evaluating the differences between the Retail Master Trust sector and the Not for Profit sector.
Australia's superannuation system won't reach maturity until the 2030s, when those nearing retirement will have benefited from compulsory superannuation their full working lives. Lately, concerns about superannuation have turned towards examining how the system could better provide for citizens post-retirement, in light of increased longevity, while the system had ...
In the last 10 years, Australian superannuation funds have increased their allocations to overseas assets, introducing greater currency exposure to their portfolios. In this article, Russell's Asia-Pacific CEO shares their insights and experience in managing currency exposures, particularly from the perspective of an Australian superannuation fund.
This paper, a collaboration with Australia's Future Fund, reviews the literature on the topic of the investment horizon, in order to improve how institutional investors' understanding of potential influences on long-term investing. Twelve interconnected influences relating to investing environment design, key decision-maker choices, and investor circumstances are discussed. ...
