Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 521

Podcast: Big flows into super funds force unlisted allocations

Season 2, Episode 5

In this week's episode, we welcome special guest, John Abernethy. John is the Founder and Chairman of Clime Investment Management. He's seemingly done it all across 40-plus years in investing, from managing multi-asset portfolios, to venture capital, and now overseeing a sizeable investment portfolio and financial advice business. John tells us that super funds aren't admitting to their biggest problem: having too much money is driving them into alternative assets. In a broad-ranging interview, he also outlines why bonds aren't great value right now and Aussie equities look good in comparison, as well as how the current government isn't doing enough to help reduce inflation.

Regular guest, Peter Warnes, has a different take to John's on super funds and unlisted assets. And he's scratching his head at a recent scathing review into APRA and its supervision of super. Finally, Graham Hand discusses why homeowning retirees should never run out of money, even though many fear they will.

The podcast is also available via our dedicated website page, Google Podcasts, Apple Podcasts, Spotify, and BuzzSprout.

Please share with friends and colleagues, and a favourable rating would help spread the word. We welcome questions and suggestions at [email protected].

Grab a cuppa and settle in for our chat.

James Gruber
Editorial, Firstlinks and Morningstar

 

  •   9 August 2023
  • 4
  •      
  •   
4 Comments
Graham Hand
August 11, 2023

A correction on a statistic mentioned in my section. I should have said that based on life expectancies of people in a couple at age 65, there is a 50% chance one of them will still be alive at age 90.

Michael2
August 12, 2023

Hi Graham, in your comments about reverse mortgages on the home, I don’t remember you mentioning that people often view the home as a deposit to get into a nursing home.

What are your views on not having a reverse mortgage to fund nursing home entry,

Michael

Graham Hand
August 12, 2023

Hi Michael2, good question, thanks. As you know, the cost of aged care is a complex and specialist subject which is why we often run Rachel Lane's articles, and in the same edition as the podcast, this article: https://www.firstlinks.com.au/consider-paying-nursing-home-accommodation

So to answer your question, the point I was making is that a major concern of homeowning retirees is that they may run out of money, and I argue they will not actually 'run out of money' as Australia offers a safety net system. I'm not suggesting people should aim to live on social security, just saying they will not literally 'run out of money'.

So in the same way some people can fall back on the age pension, as the nursing home articles says: "While some have their nursing home accommodation costs fully covered by the government (based on a means test), most will have to pay their own way. The average lump sum room value is A$334,000."

All circumstances are different but for many people, the value of their home will far exceed the cost of nursing home entry.

Michael2
August 13, 2023

Thanks Graham, much appreciated

 

Leave a Comment:

banner

Most viewed in recent weeks

Indexation implications – key changes to 2026/27 super thresholds

Stay on top of the latest changes to superannuation rates and thresholds for 2026, including increases to transfer balance cap, concessional contributions cap, and non-concessional contributions cap.

The missing 30%: how LIC returns are understated, and why it matters

The perceived underperformance of LICs compared to ETFs is due to existing comparison data excluding crucial information, highlighting the need for proper assessment and transparent reporting.

Little‑known government scheme can help retirees tap into $3 trillion of housing wealth

The Home Equity Access Scheme in Australia allows older homeowners to tap into their home equity for retirement income, yet remains underused due to lack of awareness and its perceived complexity.

Origins of the mislabeled capital gains tax ‘discount’

Debate over the CGT discount is intensifying amid concerns about intergenerational equity and housing affordability. This analysis shows that the 'discount' does not necessarily favor property investors.

2 billion reasons to fix retirement income

A proposal to address Australia's 'stranded balances' in retirement by requiring super funds to transition members to pension phase at 65, boosting retirement income and reframing super as a source of income.

The ultimate superannuation EOFY checklist 2026

Here is a checklist of 28 important issues you should address before June 30 to ensure your SMSF or other super fund is in order and that you are making the most of the strategies available.

Latest Updates

Investment strategies

Putting portfolios together when the world is falling apart

Global equity markets have grown more correlated due to globalization, but this trend may reverse which boosts the benefits of cross-country diversification.

Property

Housing belongs in the inequality story

Research highlights the significant impact of excluding housing income from income inequality analysis in Australia, arguing for the inclusion of imputed rent and capital gains to provide a more accurate picture.

Exchange traded products

Lithium's rally is real this time – but no-one trusts it

The lithium rally mirrors the early-2010s tech stock surge, with demand set to double by 2030. Supply has been slow to respond, creating a market deficit for future tech like humanoid robotics and solid-state batteries.

Economy

Why is Aussie inflation so stubborn?

Increasing our official cash rate contrasts with almost every other developed country in the world. Canada, UK, Europe, and USA, so far, have not reversed recent cuts while their inflation issues appear to be contained.

Strategy

How to stop Australian democracy going the way of the US

Around the world, democracy as a system of government is backsliding. After more than 50 years of liberal democracy in ascendancy, democratic progress plateaued around the turn of the century and is now going backwards.

Economy

Off-budget, but not off-the hook

Financial commentators await the federal budget with focus on debt and deficit. 'Off-budget' accounting alters the fiscal picture with unseen programs.

Economy

Shares rebound on hopes of war ending, but stalemate the likely outcome

Ashley Owen's abridged monthly snapshot uncovers what is front of mind for investors around the world and his view on the likely outcome of the stand-off in the Middle East.

Sponsors

Alliances

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.