Wealth

Insights on wealth management, investments, and personal finance.

Wealth
Transformed AMP sees continued high super returns
AMP, one of Australia’s largest retail superannuation funds, hopes to continue generating double-digit returns for the third consecutive year. Head of Portfolio Design and Management Stuart Eliot said the financial services group’s medium-term forecast was for returns of 6% to 7% per year, depending on the risk profile of each member. “My personal view is it'll probably be a little bit stronger than that so it would be pretty nice to do three years in a row of double-digit returns,” Eliot told Azzet. With about A$55 billion of super funds under management in almost 590,000 accounts at 31 March, AMP this week announced returns of between 10.1% and 12.9% over one year and 5.4% to 10.2% over five years in its MySuper products. This is in line with data from research house SuperRatings which estimated the median balanced super product in Australia returned 10.1% in the 12 months ended 30 June, compared with 8.8% in FY24 and 8.5% in FY23. But it is counter to the conventional wisdom that funds managed by for-profit companies like AMP (ASX: AMP) produce lower returns and charge higher fees than industry and other profit-to-member funds.Revived by restructureEliot said AMP’s returns for its members had improved since it ch
Wealth
Confidence high: Australians dress up and dine out
Australians loosened their purse strings in May, with household spending rising 0.9% as consumers splashed out on new threads and dining experiences, according to the latest Australian Bureau of Statistics data. The uptick follows a flat April and 0.1% decline in March, suggesting households are regaining confidence despite borrowing costs hikes. "The rise in May was driven by spending on discretionary goods and services," ABS head of business statistics Robert Ewing said. "Discretionary spending rose 1.1%, as households spent more on clothing and footwear, new vehicles, and dining out." The May spending bump hit seven of nine categories, though it wasn't exactly a shopping spree across the board. Clothing and footwear posted a 3.7% increase, followed by transport at 1.7% and miscellaneous goods and services at 1.3%. Only alcoholic beverages and tobacco (-1.4%) and food (-0.1%) recorded declines, suggesting households are picking their battles when it comes to where they spend. "Meanwhile, non-discretionary spending was up 0.5%, rising for the fifth consecutive month," Ewing noted. The annual picture shows household spending 4.2% higher than in May 2024. Health expenditure topped the yearly rankings with
Wealth
Super funds ride rollercoaster to double digit returns
Superannuation funds have provided a third successive year of strong returns after a rally in share prices in the final quarter of the 2025 financial year (FY25), according to new data. SuperRatings estimated the median balanced option returned 10.1% in the 12 months ending 30 June, compared with 8.8% in FY24 and 8.5% in FY23. The research firm said the median growth option grew by an estimated 11.3% and the median capital stable option, which has more defensive assets like cash and bonds, rose by 7.3% in the last financial year. SuperRatings said funds had delivered positive returns in 14 out of the last 16 years since the bottom of the global financial crisis in FY09. It said the second half of the year had been a rollercoaster for returns which plunged from 8.0% in the seven months to 31 January to 0.8% after the United States ‘Liberation Day’ tariffs announcement in April before rebounding. “We saw exceptional volatility in returns over the year, particularly following the announcement of US tariffs in early 2025, however the benefit of staying the course was once again proven as a quick rebound has resulted in the third double digit return year over the past decade,” Executive Director Kirby Rappell said. Pe
Wealth
EM debt back in focus for Australian insto investors
The most recent Global Asset Owner Survey by bfinance reveals that due to a compelling yield relative to developed market bonds - with around 60% now rated investment grade - a growing number of institutional investors plan to maintain or increase their exposure to Emerging Market Debt (EMD) allocations over the next 18 months. This data reflects the tilt away from traditional capital markets like London, Washington and Paris to new-world economies like Sao Paulo, New Delhi and Beijing. While 50% of EM Hard Currency Sovereign Debt issuers - spanning over 80 countries – are now rated ‘investment grade’ - the local Currency EM Debt market, focused on larger emerging economies, now boasts investment grade exposure of around 80% - boosted by the inclusion of China and India in major indices in 2020 and 2024, respectively. After analysing over a decade of manager performance, allocation trends, and implementation practices, the bfinance report, Emerging Market Debt: Extracting Potential Amidst Complexity, finds that while volatility and complexity have historically deterred some investors, the [EM Debt] asset class continues to offer material advantages for sophisticated institutions. While these characteristics are particu
Wealth
Retail super funds fight back with high returns
The perception that industry superannuation funds outperform their retail competitors may change as two of Australia’s largest retail funds have delivered double digit returns for the 2025 financial year (FY25). The figures from Insignia Financial Group’s (ASX: IFL) MLC Super and AMP’s (ASX:AMP) AMP Super throw down the gauntlet to industry and profit-to-remember funds but it is too early to know if they delivered equally strong performances. The MLC High Growth investment option returned 11.4% in FY25 and 11.4% per year ovr the last five years while the MLC MySuper Growth option delivered 10.1% and 9.2% respectively.Source: MLC SuperAMP’s MySuper 1970s, 1980s and 1990s options achieved returns of 12.7%, 12.9% and 12.8% for FY25 and 9.7%, 10.2% and 10.1% over five years while the MySuper 1950s and 1960s funds posted 10.1% and 11.2% (FY25) and 5.4% and 7.1% (five years). Source: AMP InvestmentsStaying neutral MLC Asset Management Chief Investment Officer Dan Farmer said the strong performance of global and Australian equities had been the key drivers of the performance, with alternative assets, private credit and infrastructure also performing well. He said MLC had been well-positioned for the U.S. change of government,

Wealth
Financial media hints at market volatility: study
While the financial news media is often maligned for selling the hype, a new joint QUT/Auckland University study suggests it does more than report on financial markets, but also provides meaningful clues to where they're heading. These are the key findings within a newly released study, Stock Market Volatility and Business News which suggests financial news media coverage is strongly correlated to stock market volatility movements. The study suggests that investors who draw on financial news articles can [potentially] more accurately forecast share market volatility risk than retrospective data typically used in economic forecasting. After analysing the language used in over 1.1 million news articles from The Wall Street Journal over a two-year stint - and linking it to fluctuations in the S&P 500 - the study found that news articles delivered detailed information closely aligned with what investors want. The study suggests that disruption-related terms like "crisis", "recession", and "loss" were strongly correlated with volatility spikes. The study also discovered that general economic and financial terms like "asset", "stock", "government" and "dollar" emerged as predictors of monthly volatility - likely reflectin
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Last suitor still working on bid for Insignia Financial
As the potential partners leave the floor, a 178 year old Australian company is still waiting to be asked to dance. Having witnessed two potential suitors withdraw from a contest to take it over, financial services company Insignia Financial is clinging to the hope that New York-based private equity firm CC Capital Partners will make a firm bid. Some investors shared that enthusiasm with the Insignia share price leaping more than 7% on Tuesday after it was informed that CC Capital had continued to actively work towards making a binding offer. “Specifically, CC Capital is finalising financing and investment committee approvals, a process that is expected to be completed in the next two weeks,” Insignia said in an ASX announcement. However the target company was at pains to repeat there is no guarantee its only remaining suitor will make a firm offer. Insignia was providing an update on the status of talks with CC Capital regarding its revised non-binding and indicative proposal to acquire all of its shares by way of a scheme of arrangement. Private equity giant Bain Capital withdrew in May from the contest for the wealth manager, which provides financial advice, superannuation, wrap platforms and asset management
Wealth
Australia’s millionaire tax dodgers spark global debate
In a revelation that’s reigniting a debate over wealth and fairness, the Australian Taxation Office (ATO) has confirmed that 91 Australians earning over $1 million in 2022–23 paid zero income tax. These high-net-worth individuals collectively claimed $390 million in deductions, with nearly three-quarters of that — $291 million — channelled into tax-deductible charitable donations. The average donation among the 19 most generous donors reached a staggering $15.4 million. Meanwhile, this elite cohort also claimed $62.8 million in deductions for managing their tax affairs, averaging nearly $691,000 per person. The data underscores a stark geographic and economic divide. Australia’s wealthiest taxpayers are concentrated in Sydney’s eastern suburbs — Darling Point, Edgecliff, Rushcutters Bay, and Point Piper — where the average taxable income in postcode 2027 reaches $279,712. These enclaves of affluence contrast sharply with the broader population, where average wages rose just 2.6% to $74,240, while tax bills climbed faster than incomes amid inflation and the end of key offsets. The Australia Institute’s chief economist, Greg Jericho, argues the findings expose a systemic imbalance. “At a time when we’re debating super
Wealth
ABS Demand: Metro Finance hits $5bn loan book milestone
Australia’s Metro Finance has surpassed $5 billion in loan book value for the first time, marking a major inflection point for the independent non-bank lender. The Sydney-based firm, which specialises in auto, equipment, and novated lease finance, has now originated over $10 billion in loans since its 2011 inception. The milestone underscores Metro’s rapid ascent in Australia’s asset finance sector, where it now settles approximately $200 million in loans monthly through a national broker network of 4,000 introducers. The announcement follows Metro’s record-breaking $1 billion asset-backed securities (ABS) issuance in May 2025 — its largest to date. Initially launched at $500 million, the deal was upsized twice due to overwhelming investor demand, with 82% of participation coming from offshore institutions across Europe, Japan, Hong Kong, the U.K., and the U.S. All note tranches were oversubscribed, reinforcing Metro’s growing reputation as a high-performing issuer in the securitisation market. CEO David Albest said the transaction “doubled its original value at launch,” reflecting confidence in Metro’s asset quality and growth trajectory. Metro’s growth is also driven by sustainable finance innovation. In