POWERED BY MOMENTUM MEDIA
Perpetual downgrades SMSF business
Perpetual has run into trouble with the self-managed super fund (SMSF) business it acquired in 2008.
The carrying value of the group’s smartsuper business exceeded its estimated fair value by $10.6 million, according to an internal review.
This will result in a goodwill impairment charge of $10.6 million after tax in the group’s financial statements for the six months ending 31 December, 2010, according to a statement from Perpetual to the Australian Securities Exchange.
The non-cash charge does not materially affect the group’s liquidity, cash flows, or current or future operations, or the operations of the smartsuper business that contributes about 1 per cent of the group’s total revenue, Perpetual stated.
Smartsuper is a SMSF administration provider based in Sydney that Perpetual acquired in September 2008, and the ability to maintain profit margins and growth are being challenged by what is proving to be a very competitive environment, Perpetual stated.
The board intends to exclude the goodwill impairment charge in determining its 2011 financial year dividend and did not expect the downgrade to materially affect the group’s underlying profit, which is currently expected to be $41 million, slightly above the previous guidance of $35 to $40 million.
Recommended for you
The impact of identity theft and its threat to superannuation savings were highlighted in a case that went before the Federal Court at the end of 2023.
A recent NSW Supreme Court decision is an important reminder that while super funds may be subject to restrictive superannuation and tax laws, in essence they are still a trust and subject to equitable and common law claims, says a legal expert.
New research from the University of Adelaide has found SMSFs outperformed APRA funds by more than 4 per cent in 2021–22.
The SMSF Association has made a number of policy recommendations for the superannuation sector in its pre-budget submission to the government.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
