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24 July 2017

Over the past week Australian shares were down 0.7% with smaller stocks declining further down 1.1%. The performance was positive elsewhere; US shares and other developed countries were up 0.5% while emerging markets were up 1.3%. The Australian dollar increased by 1.1% to 79.16 US cents. The 10 year bond yield in Australia fell slightly to 2.7%. In the US, the 10 year bond yield continued its slide to 2.24%, down 0.09%. The oil price fell 1.7% to 45.77 US dollars per barrel.

Sometimes it feels like the super industry is under constant regulatory or system review. Over the past 18 months there have been many consultation papers released. Some of the topics covered included:

  • creating an objective for the super industry
  • how efficiency of the super system should be measured
  • what changes should be made to regulation, taxation and social security associated with retirement products to encourage the creation of more innovative post retirement solutions
  • the concept of a Comprehensive Income Products for Retirement (CIPR) or MyRetirement, a non mandatory default style post retirement solution.

We’ve been active in making submissions on many of these topics. In particular our Retirement Outcome Modelling team has been doing some fantastic work, respected by many people within the industry.

You might wonder why we spend time making these submissions. There are a number of reasons:

  • It ensures we are heavily engaged with important topics which could affect our members.
  • It allows us to provide feedback to regulators and policymakers and gives us the opportunity to suggest changes which could result in a better or more efficient system.
  • Where possible we try and contribute to a better retirement system overall.
  • It provides us with the opportunity to engage with regulators and policymakers, giving us a better understanding of the drivers of different proposals.

Super is a complex industry and business. We’re doing some great work ‘behind the scenes’ and this contributes to the long term goal of delivering the best retirement solutions and services for our members.

Signing off

David Bell | Chief Investment Officer

Past performance isn't necessarily an indicator of future performance.

All data sourced from Bloomberg.