TWILIGHT SEMINAR SERIES INDUSTRY RATIONALISATION THE THINGS FUNDS - - PowerPoint PPT Presentation
TWILIGHT SEMINAR SERIES INDUSTRY RATIONALISATION THE THINGS FUNDS NEED TO DO TO PROSPER FEBRUARY 2016 [Date] FUTURE DISRUPTIVE TECHNOLOGIES Session One Michael Rice Robin Bowerman Roland Slee CEO, Rice Warner Principal, Vanguard
FEBRUARY 2016
[Date]
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An Australian view
Michael Rice CEO, Rice Warner
Trends in the USA
Robin Bowerman Principal, Vanguard
Trends in the UK
Roland Slee Managing Director, Bravura
Session One
Michael Rice Rice Warner
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EVENT OUTCOME
fund brands and marketing
strategies and financial advice models
It has facilitated growth of online sharebrokers
Expansion of products
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Colin Kelton Vanguard
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Roland Slee Bravura
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Heather Brown Consultant Nathan Bonarius Consultant Steve Freeborn Head of Client Relationships
Session Two
SUPER INSIGHTS ENGAGEMENT LOYALTY
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Nathan Bonarius Consultant
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Rule Number 1 – Know your member
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But… Superannuation funds don’t always know everything they need to know about their members
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24 Funds 10.8 m member accounts
38% of the total Superannuation market by member account
$346 Bn FUM
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0% 10% 20% 30% 40% 50% 60% 70% 80% Selecting a Choice Investment Invested in Growth Assets
Investment Decisions: Male vs. Female
Male Female
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Sometimes a variable isn’t as big an influence as you think…let the data talk for itself
What key developments are happening in the market now Heather Brown Consultant
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The Superannuation market is ever changing.
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Current financial burdens take priority now.
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Retirement Superannuation Investments Saving Budgeting
Members want to find solutions for themselves.
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Caring for elderly relatives Career break Maternity leave Attitudes to investment Engagement
Women and Men engage differently with Super.
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Strategy Benchmarking Solution implementation Gender specific financial planning Online tools Member briefings
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Quick and easy access to information.
Where we see the future going Steve Freeborn Head of Client Relationships
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The challenge is retaining members in the face of competition.
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First to get it right will win!
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What will drive action by members?
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Retaining members through retirement.
Scott Hartley
CEO Sunsuper
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members before they know they need it.
suite (and not the other way around).
retirement.
investing for growth.
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21 8 16 23 31 26 16 23 20 16 23 6 18 27 30 24 25 23 25 22 26 22 25 24 25 23 22 23 29 25 14 13 14 12 15 13 14 16 10 12 15 11 14 14 12 27 37 31 24 21 23 31 24 31 30 25 32 30 23 25 13 16 15 14 7 10 15 10 14 16 12 28 15 7 6 1 1 1 1 4 1 1 1 2 1 1 1 1 1
TOTAL 50-59 60-69 70-79 80+ MALE FEMALE NSW VIC QLD OTHER <$20,000 $20,000-39,999 $40,000-59,999 $60,000+ AGE GENDER STATE PERSONAL INCOME
Not at all concerned Not very concerned Neutral Somewhat concerned Very concerned Can't say/not applicable
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12 3 7 13 25 16 10 15 13 9 13 2 12 14 20 23 16 19 28 25 28 19 28 22 23 19 17 21 31 23 9 7 8 11 11 11 8 8 8 7 14 8 10 9 8 29 34 33 28 20 26 31 29 26 30 30 29 31 29 28 25 40 33 20 14 19 31 19 29 32 23 45 26 16 21 1 1 1 1 4 1 2 2 2 1 1 2
TOTAL 50-59 60-69 70-79 80+ MALE FEMALE NSW VIC QLD OTHER <$20,000 $20,000-39,999 $40,000-59,999 $60,000+ AGE GENDER STATE PERSONAL INCOME
Not at all concerned Not very concerned Neutral Somewhat concerned Very concerned Can't say/not applicable
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18 6 14 18 31 20 16 20 16 18 18 8 16 22 22 19 13 18 22 20 24 15 19 17 22 19 13 21 21 18 17 16 18 17 17 17 17 21 17 11 19 25 19 15 13 22 34 24 20 14 19 24 19 24 24 20 26 21 18 24 20 30 25 17 10 15 23 17 21 22 19 21 18 21 22 5 1 2 6 9 4 5 5 6 3 5 7 5 3 2
TOTAL 50-59 60-69 70-79 80+ MALE FEMALE NSW VIC QLD OTHER <$20,000 $20,000-39,999 $40,000-59,999 $60,000+ AGE GENDER STATE PERSONAL INCOME
Not at all concerned Not very concerned Neutral Somewhat concerned Very concerned Can't say/not applicable
38 0% 0% 1% 0% 4% 3% 0% 11% 6% 1%
13%
0% 5% 10% 15% Tenure in pension Original balances Minimum or above
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10% 30% 60%
Money spent in retirement
Money saved during working years Growth of savings before retirement Growth during retirement
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$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000
Super Age pension Medicare and seniors discounts Home ownership These are effectively inflation adjusted lifetime annuities Why further annuitise these members?
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Sample population of 60 year old males Average life expectancy of 83
5% income 15% income
Individual approach
uncertainty
lifetime
Pooled approach
lifetime
Material available online ricewarner.com/twilight-seminar-series-literature/
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SYDNEY
Level 1 2 Martin Place Sydney NSW 2000 P +61 2 9293 3700 F +61 2 9233 5847
MELBOURNE
Level 20 303 Collins Street Melbourne VIC 3000 P +61 3 8621 4100 F +61 3 8621 4111 ABN 35 003 186 883 AFSL 239 191 www.ricewarner.com