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March 2019

Commentary on the Royal Commission

Commentary on the Royal Commission

In February the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was tabled in Parliament.

In keeping with smartMonday’s approach for honest, no-nonsense communication we made a commitment to members to provide a considered response. We are delighted to be able to fulfil that promise in the most open forum we have, our website.

While our internal team evaluated the Commissioner’s report we believed there was also a need to supplement this with independent analysis. smartMonday enlisted the services of leading global advisory firm to garner unfiltered insights.

That summary decided to consider three headline areas

  • Governance and the regulatory environment;
  • Member engagement and financial advice;
  • A greater focus on member outcomes.
     

Devoting two of their three focus areas to members underlined the important weighting that fund’s must allocate to members. This is a view smartMonday has always shared, as we continue striving to provide enhanced customer outcomes every single day.

Not with big leaps, but with smart, easy actions.

A greater focus on member outcomes

The Commissioner’s report proposed that all super funds should undertake an annual member outcomes assessment against key metrics including fees and investment performance to ensure members are provided with a competitive default product against alternatives. It was recommended this would take place independently, at least every three years and would cover all investment options offered by a fund.

Publicly available research from KPMG states, “This should form the key tenet for the ongoing viability and sustainability of funds going forward.”

smartMonday fosters a culture of financial wellbeing for our members. We know that investment performance is an important member consideration and we’re proud of our global investment pedigree in this area. Over a three-year period up to 31 December 2018 the majority of smartMonday’s investment options outperformed their respective medians. Performance information is readily accessible on our website, but we’re taking steps to give more prominence to investment performance so that all members find it even easier to understand how we are performing in this area - any day of the week, rather than every three years.

Alongside investment performance, fees will always be an important differentiator for members. smartMonday’s maximum investment management fee for MySuper is 0.28% - which is positioned considerably below the industry median of 0.85%.

We remain resolute in ensuring every one of our members can understand their super performance and track their outcomes clearly. As well as enhancements to our award-winning website in 2018 we also launched an interactive statement summary for members to easily and quickly interact with their financial position. There will be further changes to the website, and to our member communications as we listen to feedback from our most important stakeholders - our members - to ensure we are providing the best in breed member experience.

Member engagement and Financial Advice

The Royal Commission highlighted the importance of assisting members with financial literacy to enable them to make informed decisions regarding their superannuation fund.

smartMonday has always believed that member education and greater interaction will help bolster outcomes within superannuation. It’s why we invested in establishing the 8 Habits of a Financially Fit Human seminar series delivered by our smartPartners. It’s also why we launched our nest content hub which houses podcasts, feature stories and smart, easy actions on key financial topics.

It’s programs like these, alongside our quarterly financial education newsletter Monday Matters that are the building blocks our members can continually utilise to grow their financial wellbeing.

smartMonday remains an industry-leader in member engagement, supported by an active member ratio of 92% which according to APRA research from June 2018 is materially higher than the industry median of 81%.

Despite that we acknowledge there is always greater work to do to help members more holistically grasp their understanding and control of money matters and we’re energised by that task.

Our team’s goal is to accelerate the delivery of best outcomes to members across every step of an enhanced, simplified super journey to help individuals better negotiate and understand the individual nature of their super journey.

Governance and the regulatory environment

A central theme of the Royal Commission was the requirement to improve governance and increase regulation of trustees to ensure there is independence in the decision-making process and members best interests remain at the centre of all trustee decisions.

The Commissioner proposed:

  • Fund trustees should be prohibited from acting in any other role to remove any potential conflicts of interest.
  • The requirement for trustees to have their performance assessed annually and to demonstrate a professional understanding of the superannuation system and investments (either gained from industry experience or via formal training).
  • A restriction on the use of members’ monies, such as sponsorship or corporate entertainment and other promotional activities, which are not directly related to enhancing member outcomes.
  • Civil penalties applicable to trustees in breach of their best interest obligations.
     

smartMonday embraces a continual cycle of improvement, with members always at the core of that decision-making process. Given we’re not affiliated with a union or bank - we’re able to continue to put members first. 

The trustee of smartMonday is Australia’s leading independent, specialist provider of superannuation trustee services - Equity Trustees Superannuation Limited - who meet industry best practice and remain responsible for ensuring the fund remains legally compliant and always acts in the members best interests.

One-hundred-word summary

The Royal Commission dedicated less than two in every ten submissions to superannuation, but it was a catalyst for introspection.

It served to highlight the conflicted nature of commission-driven incentives and the corrosive outcomes that affords, while underlining the importance of independent, accountable trustees and strong regulatory frameworks.

Crucially it illuminated the need to bolster member education and engagement to empower greater transparency around fees and returns, equipping members with clear, comparable information to drive superior outcomes. 

smartMonday remains committed to working in partnership with our members to bolster their financial wellbeing and make their superannuation experience positive, uncomplicated and rewarding.



smartMonday is a registered trading name of Aon Hewitt Limited ABN 48 002 288 646 AFSL 236667 (Aon), the sponsor of the Aon Master Trust ABN 68 964 712 340 (the Fund). The trustee of the Fund is Equity Trustees Superannuation Limited ABN 50 055 641 757 AFSL 229757 RSE Licence L0001458. This document has been prepared by Aon. smartMonday PRIME, smartMonday DIRECT and smartMonday PENSION products are part of the Fund.

Aon has taken care in the production of this document, the contents of which has been obtained from sources that it believes to be reliable. Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose that this document may be used and accepts no liability for any loss incurred by anyone who relies on it. In any case, any recipient shall be entirely responsible for their use of this document.

February 2019

February returns now available

Latest returns to 28 February 2019
PRIME and DIRECT
PENSION

February 2019

Productivity Commission Report

At the start of 2019 the Productivity Commission released a 722 page report called Superannuation: Assessing Efficiency and Competitiveness.

Eighteen months in the making it was certainly well researched.

The Australian Government can use this independent research to shape future superannuation policies. As the report states, “Policy deliberations can be informed by both the recommendations of this inquiry and those of the Royal Commission,” (Overview - Superannuation: Assessing Efficiency and Competitiveness - Inquiry Report p31).

While the Productivity Commission report is a considered document, with valuable learnings, we don’t need a quarter of a million-word report to remind us of the five most important words we strive for everyday - always put the member first.

In 2016, long before the Productivity Commission report was tabled, we launched a new arm of our servicing, the Member Experience team. That growing team’s goal was to accelerate our delivery of best outcomes to members across every step of an enhanced, simplified super journey. Late last year we also introduced members to the smartCoach to help them better negotiate and understand the individual nature of their super journey.

We invite you to read the summary of the Productivity Commission report here.

We’ve also included four points that you may have missed in media coverage of this report.

These points have not been editorialised and are produced as they appeared in the original independent Overview - Superannuation: Assessing Efficiency and Competitiveness - Inquiry Report -

  1. “Australian funds in our survey also preformed comparably, on average, to large pension funds in developed countries across most asset classes.” P 9
  2. “Superannuation funds on average outperformed a market index benchmark in most individual asset classes over the last ten years to 2017.” P 51
  3. “Well designed life-cycle products can produce benefits greater than or equivalent to single strategy balanced products, while better addressing sequencing risk for members.” P 55
  4. “The default segment has on average provided better outcomes for members than the system as a whole.” P 64


smartMonday is a registered trading name of Aon Hewitt Limited ABN 48 002 288 646 AFSL 236667 (Aon), the sponsor of the Aon Master Trust ABN 68 964 712 340 (the Fund). The trustee of the Fund is Equity Trustees Superannuation Limited ABN 50 055 641 757 AFSL 229757 RSE Licence L0001458. This document has been prepared by Aon. smartMonday PRIME, smartMonday DIRECT and smartMonday PENSION products are part of the Fund.

Aon has taken care in the production of this document, the contents of which has been obtained from sources that it believes to be reliable. Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose that this document may be used and accepts no liability for any loss incurred by anyone who relies on it. In any case, any recipient shall be entirely responsible for their use of this document.

February 2019

Royal Commission statement

Statement regarding Royal Commission

While the topic of superannuation was the focus of fewer than two in every ten submissions made to the Banking Royal Commission -  the findings of the Commission provide many important considerations for our industry.

Given the detailed nature of the Commissioner’s final report, we plan to carefully evaluate his recommendations and to provide a considered response to our members.

In the meantime, you can access the final report here.



smartMonday is a registered trading name of Aon Hewitt Limited ABN 48 002 288 646 AFSL 236667 (Aon), the sponsor of the Aon Master Trust ABN 68 964 712 340 (the Fund). The trustee of the Fund is Equity Trustees Superannuation Limited ABN 50 055 641 757 AFSL 229757 RSE Licence L0001458. This document has been prepared by Aon. smartMonday PRIME, smartMonday DIRECT and smartMonday PENSION products are part of the Fund.

Aon has taken care in the production of this document, the contents of which has been obtained from sources that it believes to be reliable. Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose that this document may be used and accepts no liability for any loss incurred by anyone who relies on it. In any case, any recipient shall be entirely responsible for their use of this document.

January 2019

January returns now available

Latest returns to 31 January 2019
PRIME and DIRECT
PENSION

January 2019

Mid-Year MARKET UPDATE

The first half of the financial year has been a prickly time for global markets.
Ambiguity regarding the trade relationship between the United States and China has been a catalyst for a lot of this uncertainty.

A benchmark used to measure international markets, the MSCI World Index, reveals a dip in value of almost 5 percent between July and November in 2018.

It’s been a volatile time for markets, with some investments hit harder than others. In three months the share price of index heavyweight Apple has fallen from US$ 229 to US$ 142. A single stock has shed a dollar a day, over a 90-day period.

The connected nature of the global financial ecosystem has seen international angst ripple through at home. Over the same period last year, the top 300 companies on Australia’s Stock Exchange lost nine percent of their value in just under four months.

To mitigate the risk of over-exposure in a single investment type for default members smartMonday has ensured there is diversity in their asset types held by our default members. This spans a broad spectrum of investments including international property, global infrastructure, international and domestic equities and bonds.

While portfolio performance is impacted by global phenomena, it isn’t dented by events like Successor Fund Transfers. All our members that were transitioned into smartMonday from The Executive Superannuation Fund and the Enterprise Plan – now smartMonday TESF and smartMonday ENTERPRISE - maintained their market exposure during the relocation and any future movement in the market will also be experienced.

Thought of another way, had the transition not occurred members would still have experienced a dip in their portfolios due to the downward trend overall.

The Australian Government’s Productivity Commission Inquiry Report Superannuation: Assessing Efficiency and Competitiveness revealed, “about thirty percent of Australians have low financial literacy.” Even for financial wizards, the market movements can be hard to understand. That’s why it can be helpful reaching out to smart Monday’s smartCoach.

The smartCoach can provide advice on your superannuation including investment options, how to maximise your contribution strategy and your overall retirement and insurance adequacy. 

To access this member benefit email smartcoach@smartmonday.com.au, phone 1300 262 241, or use the Live Chat function available on smartmonday.com.au

smartMonday is a registered trading name of Aon Hewitt Limited ABN 48 002 288 646 AFSL 236667 (Aon), the sponsor of the Aon Master Trust ABN 68 964 712 340 (the Fund). The trustee of the Fund is Equity Trustees Superannuation Limited ABN 50 055 641 757 AFSL 229757 RSE Licence L0001458. This document has been prepared by Aon. smartMonday PRIME, smartMonday DIRECT and smartMonday PENSION products are part of the Fund.

Aon has taken care in the production of this document, the contents of which has been obtained from sources that it believes to be reliable. Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose that this document may be used and accepts no liability for any loss incurred by anyone who relies on it. In any case, any recipient shall be entirely responsible for their use of this document.

January 2019

Notice to members who received letters re logging into the portal

(This notice is not intended for smartMonday PRIME TESF or smartMonday PRIME Enterprise members) 

Some members have recently received a letter containing instructions on how to log into your account on the member portal which included the use of a PIN. Those letters were inadvertently released during a system upgrade and should be ignored.  Logging into the smartMonday member portal does not require the use of a PIN. Please be assured that member’s personal data is still secure within our systems and this incident has not exposed that data to any unauthorised access or usage.  If you have any questions about this matter please call our Contact Centre on 1300 880 588.  


smartMonday is a registered trading name of Aon Hewitt Limited ABN 48 002 288 646 AFSL 236667 (Aon), the sponsor of the Aon Master Trust ABN 68 964 712 340 (the fund). The trustee of the Fund is Equity Trustees Superannuation Limited ABN 50 055 641 757 AFSL 229757 RSE Licence L0001458. This document has been prepared by Aon. smartMonday PRIME, smartMonday DIRECT and smartMonday PENSION products are part of the Fund.
Aon has taken care in the production of this document, the contents of which has been obtained from sources that it believes to be reliable. Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose that this document may be used and accepts no liability for any loss incurred by anyone who relies on it. In any case, any recipient shall be entirely responsible for their use of this document. Past performance should not be considered a guide to future performance. © 2018 Aon Hewitt Limited

 

December 2018

December returns now available

Latest returns to 31 December 2018
PRIME and DIRECT
PENSION

December 2018

Processing returns to normal

After extensive end-to-end testing members of smartMonday are again able to access all the operational features of their accounts.
 
The lift of the extended transactional pause at 3pm (13 December) marked a return to full service for all members.
 
smartMonday members now have unrestricted access to contributions, rollovers, investment switches, account balance checks and benefit quotations as well as commutation payments and online services.
 
Requests lodged during the transactional freeze window will be processed in the order in which they were received.

smartMonday is a registered trading name of Aon Hewitt Limited ABN 48 002 288 646 AFSL 236667 (Aon), the sponsor of the Aon Master Trust ABN 68 964 712 340 (the fund). The trustee of the Fund is Equity Trustees Superannuation Limited ABN 50 055 641 757 AFSL 229757 RSE Licence L0001458. This document has been prepared by Aon. smartMonday PRIME, smartMonday DIRECT and smartMonday PENSION products are part of the Fund.
Aon has taken care in the production of this document, the contents of which has been obtained from sources that it believes to be reliable. Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose that this document may be used and accepts no liability for any loss incurred by anyone who relies on it. In any case, any recipient shall be entirely responsible for their use of this document. Past performance should not be considered a guide to future performance. © 2018 Aon Hewitt Limited

 

December 2018

Extension to transaction processing hold

November 2018

November returns now available

Latest returns to 30 November 2018
PRIME and DIRECT
PENSION

November 2018

A milestone year for smartMonday

November 2018

Investment Note: ASX Performance

Watching a dip in the share market can be a nerve-wracking time for members but while drops can seem shocking, it’s important to remember they aren’t permanent and knee-jerk responses rarely produce the best outcomes for members.
 
Earlier this year, as part of smartMonday’s perpetual review process, our most popular investment option - the Aon MySuper lifecycle - received its regular investment health check and in July we proactively elected to make key enhancements to it.
 
These improvements included adding a small defensive allocation for younger members to reduce volatility. For older members, retaining the dominant allocation to defensive assets was important for preserving balances, as was adding a small allocation to growth to counteract member balance erosion caused by inflation and capital drawdowns.
 
smartMonday’s Senior Investment Specialist, Jolanta Willetts, points to the dynamic re-allocation between growth and defensive assets within Aon MySuper as an effective way to enable members to benefit from the potential higher returns of growth assets at a time in their lifecycle where they can ride out such shocks, while using the increasing defensive allocation as members age, adds more protection when there is less capacity to absorb such market fluctuations.
 
“We identified a need to introduce greater diversity and protections in the portfolio earlier than we did historically. This helps buffer members from the market oscillations recently witnessed in the riskier asset classes like Australian shares. The defensive allocation continues to play the lead role for those approaching retirement - when capital preservation becomes more critical.”
 
Members know superannuation is a long-term investment, and given Aon is responsible for one in every five dollars invested globally in the pension market we bring worldwide expertise to every stage of our investment strategy. It’s why for three decades we’ve been well placed to deliver portfolio growth against a suitable degree of risk and why we’ll continue to strive for that in the future.
 
As we continue to focus on a long-term strategy that is appropriate for our broad superannuation membership, your personal circumstances can have a meaningful impact on what might be the right investment for you.
 
Now, as ever, is a great time to seek help from your financial adviser. If you don’t have an adviser you can reach out to our smartCoach team on 1300 COACH 1 (1300 262 241) to ensure your investment strategy aligns with your individual risk appetite.

smartMonday is a registered trading name of Aon Hewitt Limited ABN 48 002 288 646 AFSL 236667 (Aon), the sponsor of the Aon Master Trust ABN 68 964 712 340 (the fund). The Trustee of the Fund is Equity Trustees Superannuation Limited ABN 50 055 641 757 AFSL 229757 RSE Licence L0001458. This document has been prepared by Aon. smartMonday PRIME, smartMonday DIRECT and smartMonday PENSION products are part of the Fund. Aon has taken care in the production of this document, the contents of which has been obtained from sources that it believes to be reliable. Aon does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any purpose that this document may be used and accepts no liability for any loss incurred by anyone who relies on it. Past performance should not be considered a guide to future performance.
 
The information in this document is general in nature and should not be relied upon as advice (personal or otherwise) as your personal needs, objectives and financial situation have not been considered. Before deciding whether a particular product is right for you, please consider the relevant Product Disclosure Statement or speak with your financial adviser. If you do not have a financial adviser, contact us   to ask about the advice services you can access through your membership.
 
© 2018 Aon Hewitt Limited

October 2018

Courtesy Notice: smartMonday's transaction processing hold

smartMonday is welcoming in almost enough new members to fill the Sydney Cricket Ground and we have to make sure the transfer is smooth and secure.
 
The most effective way to safeguard existing members and new arrivals into smartMonday is to implement a brief and proactive transaction processing hold.
 
Current Members:

Will only be impacted for a few days with the pause commencing on Tuesday 4 December before returning to business as usual on Monday December 10.
 
Former TESF and Enterprise members:
Members transferring into smartMonday will be in a longer processing hold from 19 November until 10 December due to the complex nature of their transfer.
 
What’s on hold:
The pause applies to all transaction requests including member contributions, rollovers, investment switches, account balance and benefit quotations, benefit/lump sum commutation payments and online services. 
 
Once processing resumes:
Transaction requests not finalised before the hold will be processed as quickly as possible in order of date and time received using the price applicable on the date of processing.
 
Please call or email us if you would like more information.
 
Current smartMonday members – 1300 880 588
smartMonday TESF members – 1300 614 644
smartMonday Enterprise members – 1800 816 575

September 2018

September returns now available

Latest returns to 30 September 2018
PRIME and DIRECT
PENSION

August 2018

August returns now available

Latest returns to 31 August 2018
PRIME and DIRECT
PENSION

July 2018

July returns now available

Latest returns to 31 July 2018
PRIME and DIRECT
PENSION

June 2018

June returns now available

Latest returns to 30 June 2018
PRIME and DIRECT
PENSION

June 2018

smartMonday secures Super Fund of the Year nominations in award-winning month

June 2018

May returns now available

Latest returns to 31 May 2018
PRIME and DIRECT
PENSION

May 2018

1 July index increases

  • The member fee will increase (in line with increases in Average Weekly Ordinary Time Earnings) from $7.29 to $7.46 a month.
  • To ensure they keep pace with inflation (CPI), the current scales of minimum levels of cover for death and total and permanent disablement will increase by 1.9%.

May 2018

Aon MySuper Investment Strategy Change

30 April 2018

April returns now available

Latest returns to 30 April 2018
PRIME and DIRECT
PENSION

31 March 2018

March returns now available

Latest returns to 31 March 2018
PRIME and DIRECT
PENSION

28 February 2018

February returns now available

Latest returns to 28 February 2018
PRIME and DIRECT
PENSION

31 January 2018

January returns now available

Latest returns to 31 January 2018
PRIME and DIRECT
PENSION

31 December 2017

December returns now available

Latest returns to 31 December 2017
PRIME and DIRECT
PENSION

16 December 2017

Web browser security upgrades to take effect

To better protect your super we are implementing some security upgrades effective 16 December 2017. As a result, some older browser versions will no longer be supported so it is important that members ensure their internet browser is up to date.

Updating your browser will ensure you can continue to login and access your account with the latest security. The following links have been provided for your convenience where the latest versions of most popular internet browsers can be downloaded.

Microsoft Internet Explorer
Google Chrome
Mozilla Firefox
Apple Safari

Please note that if you are currently using Microsoft Edge, no updates will be required.
 

30 November 2017

November returns now available

Latest returns to 30 November 2017
PRIME and DIRECT
PENSION

31 October 2017

October returns now available

Latest returns to 31 October 2017
PRIME and DIRECT
PENSION

7 September 2017

9 September Service interruptions

Please note that systems maintenance that was scheduled for Saturday, 2 September has been moved to Saturday, 9 September. This will interrupt access to our online services between 9 am and 5 pm (Sydney time) on that day.

1 June 2017

1 July 2017 Budget tax changes

1 June 2017

1 July insurance changes

1 June 2017

1 July index increases

  • The member fee will increase (in line with increases in Average Weekly Ordinary Time Earnings) from $7.14 to $7.29 a month.
  • To ensure they keep pace with inflation (CPI), the current scales of minimum levels of cover for death and total and permanent disablement will increase by 2.1%.

10 May 2017

2017 Federal budget update – Russell’s summary

Contact us

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PO Box 1949, Wollongong NSW 2500
 
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Make Mondays matter

smartMonday is a registered trading name of Aon Hewitt Limited ABN 48 002 288 646 AFSL 236667 (Aon), the sponsor of the Aon Master Trust ABN 68 964 712 340 (the Fund). The trustee of the Fund is Equity Trustees Superannuation Limited ABN 50 055 641 757 AFSL 229757 RSE Licence L0001458. smartMonday PRIME, smartMonday DIRECT and smartMonday PENSION products are part of the Fund.
© 2019 Aon Hewitt Limited – Financial Services Guide

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