🦘 Best-Performing Superannuation Funds, Telstra Fined $1.55 Million, Westpac Makes The Switch To Digital Credit Cards

G’day everyone!

Here’s what we’ve got in store for you today:

• Best-Performing Superannuation Funds

• Telstra Fined $1.55 Million

• Westpac Makes The Switch To Digital Credit Cards

Let’s have a look at the market snapshot before jumping into the news:

Super Scramble: Top Funds Deliver Double-Digit Returns

Attention, super savers! Research has spotlighted the superannuation rockstars of the past year, and the numbers are juicy.

On average, balanced super funds delivered a sweet 8.8% return for the fiscal year ending June 30, 2024.

But let's talk about the real show-stoppers.

Hostplus' Indexed Balanced fund topped the charts with a dazzling 12.2% return.

Right behind it, First State's Enhanced Index option and Raiz Super's Moderately Aggressive option came in strong with 11.1% and 10.1% returns, respectively.

The shining stars here focused more on shares and listed assets compared to their more property-heavy peers.

A standout trend?

Funds with lifecycle investment styles and the green thumbs-up for sustainability saw great success.

Ra Super, for instance, boasted a whopping 14.8% return, with their eco-friendly approach paying off big time.

But don't get too fixated on the short-term wins.

SuperRatings experts advise looking at the long game, especially with heavyweights like Hostplus, AustralianSuper, and UniSuper consistently delivering strong 10-year returns.

Their secret sauce? Navigating market ups and downs with a steady, growth-focused strategy.

So, whether you're a seasoned investor or new to the super game, keeping an eye on sustained performance is key for fattening that retirement nest egg.

Telstra's $1.55M Blunder in the Battle Against SIM-Swap Scammers

Telstra, Australia's top telco, just got hit with a $1.55 million fine from the Australian Communications and Media Authority (ACMA) for dropping the ball on SIM-swap scam protection.

Between August 2022 and April 2023, Telstra failed to use proper ID authentication for 168,000 high-risk actions like SIM-swap requests and password resets.

This was a big deal, as over 7,000 of these mishaps involved customers who were extra vulnerable.

ACMA had laid down the law in mid-2022, demanding that telcos use multi-factor authentication (you know, those one-time codes) to thwart these scams.

This wasn't just a suggestion—it was a must-do to protect people from losing control over their phone numbers, personal info, and even their life savings.

But Telstra’s slip-up means they not only face a hefty fine but also have to bring in an independent consultant to review their practices and suggest fixes.

Essentially, Telstra's on the hook to clean up its act and ensure this doesn’t happen again.

This saga highlights how crucial rigorous ID checks are in our digital age and underscores the havoc SIM-swap scams can wreak.

For telcos, it's a stark reminder: mess up on security, and both wallets and reputations take a hit.

Westpac’s All-In on Virtual Credit Cards - Bye Bye Petty Cash!

Westpac has joined the digital revolution, launching dynamic virtual cards for its business customers just like NAB did last November.

These snazzy new Dynamic Virtual Cards can be added to digital wallets, removing the need for physical cards or cash.

Jeff Byrne, Westpac’s managing director of global transaction services, sings their praises: they’re generated on-the-fly, updated in real-time, and customizable down to the last detail.

Want to control who uses the card, where they spend, how much, and for how long? You got it!

From schools ditching petty cash for daily expenses to big corporates giving event speakers a hassle-free cash alternative, the use cases are broad and game-changing.

Not only do these cards streamline operations by cutting out reimbursement paperwork, but they also make expenses simpler to manage.

While Westpac is diving into dynamic virtual cards, NAB’s already ahead with their own version for corporate clients, offering instant card creation for employees and contractors.

CBA and ANZ aren’t far behind, but their cards are more old-school, giving only virtual card numbers for now.

This digital shift is timely: the Australian Banking Association reported a 35% spike in mobile wallet transactions last year.

For the first time ever, Aussies spent more with mobile wallets ($126 billion) than they withdrew from ATMs ($105 billion) in 2023.

Qantas Super Fund Bids Farewell, Joins Forces with Australian Retirement Trust

Qantas Super, one of Australia's oldest corporate superannuation funds, is set to merge with the Australian Retirement Trust (ART), marking a significant shift in the superannuation sector.

With 85 years under its belt, the Qantas Super fund will soon become part of ART, Australia’s second-largest pension fund.

The ART, already a superpower formed from the 2023 merger of Sunsuper and QSuper, is set to absorb Qantas Super's nearly $9 billion in assets, boosting its portfolio to a staggering $300 billion.

This merger underscores the continuing trend of consolidation in the industry, as smaller funds join forces with larger ones to optimize efficiency and cut costs.

For Qantas Super members, this merger promises a brighter financial future. ART’s focus on serving members rather than shareholders translates into lower fees and enhanced services.

Plus, with headquarters in Brisbane, ART is well-positioned to provide robust retirement solutions nationwide.

The transition, slated to wrap up soon, assures Qantas Super members that their benefits and entitlements remain intact, with no action needed on their part.

It’s a smooth move designed for stability and improved outcomes, aligning with the Australian Prudential Regulation Authority's push for super fund mergers to enhance performance and competitiveness.

As Qantas Super members join the ART family, they’re aligning with a fund committed to securing their financial futures, proving that in the world of superannuation, sometimes bigger really is better.

You Made It!

If you’ve read all the way up to here, we just wanted to let you know that you’re an absolute legend!

Time to go to work and show off how clued up you are about what’s going on in the business world 💪

Keep an eye out for tomorrow's newsletter. Until then, we’d love to get your feedback below!