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Retirement
Wealth Protection
Quarterly Investment Market Performance Q4 2024
As we navigate the complexities of the financial landscape, it's important to stay informed about how investment markets are performing. The fourth quarter of 2024 (October 1 - December 31, 2024) presented both challenges and opportunities for investors. In this article, we'll take a closer look at how investment markets performed over the quarter, and we'll highlight some of the key economic factors from across the world that influenced these outcomes.
Australia
Share market: The S&P/ASX 200 Index, which represents Australia’s top 200 companies, was up 11.4% for the year, but fell 0.8% over the quarter. Negative returns were largely due to poor performance in the materials sector, with iron ore tumbling by 23% in 2024 from China’s weak construction sector. This was offset partially by the financial sector, which posted strong returns especially amongst Australia’s major banks.
Interest rates: Australia’s inflation rate remained within the Reserve Bank of Australia’s (RBA) target range, but core inflation, which excludes volatile items like food and energy, remained above the target, despite decreasing from 3.6% to 3.2% from Q3 to Q4. Key contributors to this include domestic holiday travel, accommodation costs and the annual tobacco excise increase. The RBA kept the cash rate steady at 4.35% during the quarter, but the market is currently expecting rate cuts to commence in 2025.
Housing market: The Australian housing market, as measured by CoreLogic's Home Value Index (HVI), recorded a slight -0.1% decline in Q4 2024, marking the first quarterly drop in two years. This decline was attributed to high interest rates, cost-of-living pressures and reduced borrowing capacity. In annual terms, Australian home values were up 4.9% in 2024, adding approximately $38,000 to the median value of a home.
Australian dollar: The Australian Dollar (AUD) depreciated by 10.75% over the quarter from 69.4 to 61.9, mainly due to shifts in US interest rate expectations and a negative outlook for the Chinese economy, which has impacted Australia's export sector.
New Zealand
Share market: The S&P/NZX 50 Index saw a robust 5.6% gain in Q4 2024, benefiting from supportive monetary easing conditions where the Reserve Bank of New Zealand (RBNZ) cut rates by 1%.
Housing market: The QV House Price Index showed a modest 0.1% increase in national residential property values during the December quarter. The average home value now stands at $902,414, 0.3% lower than at the start of 2024 and 15.2% below its peak from three years ago.
Interest rates: The official cash rate was reduced from 5.25% to 4.25% during Q4, with the market expecting further reductions expected in 2025 as inflation comes under control. New Zealand’s economy has shown signs of weakness, with unemployment rising to 4.8% and retail sales volumes falling due to pressure on household budgets.
United States
Share market: The S&P 500 Index rose by 2% in Q4 2024, reflecting resilience in US equities, supported by robust consumer spending, solid corporate earnings and stabilising interest rates. Over the year, the S&P500 delivered strong returns, up 24.5% in USD terms.
Interest rates: The Federal Reserve reduced interest rates by 1% across three consecutive meetings at the end of 2024. This was in line with the Fed’s goals of achieving maximum employment and price stability. The Personal Consumption Expenditures (PCE) inflation rate slowed from 2.8% in 2023 to 2.4% in 2024, while core inflation eased from 3.2% to 2.8%.
China
Economic growth: China’s economic growth rate accelerated from 4.6% to 5.4% in Q4 2024, surpassing the 5% consensus forecast. This growth was driven by front-loading of exports due to concerns over US protectionist policies, trade-in programs boosting consumption and monetary easing measures that made borrowing cheaper.
Stimulus and tariffs: China is working to combine tactical policy adjustments with strategic reorientation to achieve balanced economic growth. At the Central Economic Work Conference in December 2024, the government outlined economic priorities for 2025, emphasising boosting domestic consumption and improving investment efficiency. The government is implementing trade-in-subsidy programs, such as those for home appliances and electric cars, to stimulate economic activity. In the face of geopolitical tensions, Beijing is prioritising domestic firms in strategic sectors like technology. The real estate sector continues to face challenges, with high inventory levels in smaller cities suggesting that property prices could face further declines in the years to come.
Key themes
The major themes currently being assessed by investors are the adoption of AI and the winners and losers from technology, where interest rates are heading around the world and the impact to economic growth and inflation from the tariff policies being implemented by the current US Administration.
We continue to monitor the major drivers of markets and their impact on Resolution Life Australasia portfolios. Running well diversified portfolios across a range of asset classes that can help navigate various market scenarios remains our main priority.
Indexation of fees and thresholds effective 1 March 2025
Effective 1 March each year, some of the fees and thresholds for the following products are reviewed and increased in line with movements in the Average Weekly Ordinary Time Earnings (AWOTE).
Below are the fees applicable to the RLA Personal Super Plan and RLA Allocated Pension from 1 March 2025.
RLA Personal Super Plan
| Small account balance fee (per month) | From 1 March 2025 | As at 1 March 2024 |
| Balances between $0 - $1,200 | Nil | Nil |
| Balances between $1,201 - $10,000 | $8.90 | $8.50 |
| Balances between $10,001 - $15,000 | $4.45 | $4.25 |
| For the balance above $15,000 | Nil | Nil |
| Large member balance rebate | From 1 March 2025 | As at 1 March 2024 |
| Nil for the first | $105,000 | $100,000 |
| 0.20% pa for the next | $105,000 | $100,000 |
| 0.35% pa for the next | $210,000 | $200,000 |
| 0.50% pa for the balance above | $420,000 | $400,000 |
RLA Allocated Pension
| Large member balance rebate | From 1 March 2025 | As at 1 March 2024 |
| Nil for the first | $288,000 | $276,000 |
| 0.20% pa for the next | $192,000 | $183,000 |
| 0.35% pa for the next | $192,000 | $183,000 |
| 0.50% pa for the balance above | $672,000 | $642,000 |
For more information
Please contact the Mature Products team for more information.
Changes to Guaranteed Super Account (GSA)’s investment offering
Improving retirement outcomes
Following a strategic review, we’re making changes to the objective and strategy of the investment option and to the product’s fees and costs, effective 1 February 2025. We’re making these changes with the aim of improving returns for members through higher crediting rates, while maintaining their low volatility and the capital guarantee that the rates will never be negative.
There will be changes to the investment strategy and fees and costs. The strategy changes include increased allocations to “growth” asset classes such as equities and property.
A revised investment objective, reductions to fees and an increase in Resolution Life’s share of the life policy participating profit allocation, are set out in the table below.
Before 1 February 2025 | From 1 February 2025 | |||
Investment objective & strategy | To provide returns over the longer term exceeding those from cash, with security of capital. Resolution Life guarantees returns will not be negative. The investment strategy for the GSA is to invest in a group superannuation policy that has limited exposure to growth assets, such as equities/shares and property. Changes to investment allocations, including the use of derivatives, can be made according to the outlook for the various investment sectors and the nature of the investment. | To provide returns (after investment fees, costs and superannuation tax) exceeding inflation over the longer term, but with lower volatility of returns than would be expected of an investment option with the same exposure to fixed interest, cash, shares and property. The investment strategy is to invest in a diversified portfolio with a core of fixed interest and cash, and with exposure to shares and property, to enhance returns. Changes to investment allocations, including the use of derivatives, can be made according to the outlook for the various investment sectors and the nature of the investment. This is a crediting rate option. Assurance: members are protected from capital losses – Resolution Life guarantees that crediting rates will not be negative. | ||
Additional information | Participating policies are administered in accordance with the Life Insurance Act 1995 and the Insurance Contracts Act 1984. Under these Acts, an annual profit is determined for each class of participating policies, and these are shared between the policy owner and the life company (Resolution Life). At least 80% of that profit must be allocated to the participating policy owner(s). Currently for GSA, 92.5% of the annual profit is allocated to the policy owner and 7.5% is allocated to Resolution Life. | Participating policies are administered in accordance with the Life Insurance Act 1995 and the Insurance Contracts Act 1984. Under these Acts, an annual profit is determined for each class of participating policies and these are shared between the policy owner and the life company (Resolution Life). At least 80% of that profit must be allocated to the participating policy owner(s). Currently for GSA, 80% of the annual profit is allocated to the policy owner and 20% is allocated to Resolution Life. | ||
Asset Classes: | Strategic asset allocation % | Asset allocation range % | Strategic asset allocation % | Asset allocation range % |
Fixed interest and cash | 88 | 90-100 | 70 | 50-90 |
Shares and alternative investments | 8 | 0-20 | 20 | 10-30 |
Property and infrastructure | 4 | 0-10 | 10 | 0-20 |
| Fees and Costs: | ||||
| Administration fees and costs | Account Balances ($) | % pa | Account Balances ($) | % pa |
$0 - $9,999.99 | 1.15 | $0 - $9,999.99 | 1.05 | |
$10,000 - $49,999.99 | 0.73 | $10,000 - $49,999.99 | 0.63 | |
$50,000 + | 0.50 | $50,000 + | 0.40 | |
Investment fees and costs | Investment fees and costs estimated to be 0.72% pa. | Investment fees and costs estimated to be 0.69% pa. | ||
These changes mean there will be an increase in the crediting rate applied to the account balance from 1 February 2025. The crediting rate will depend on the account balance. Please note, crediting rates may increase or decrease at any time without notice but will never be negative.
Customers will see the changes reflected in GSA’s disclosure documents from 1 February 2025 as well as the Investment report and Fees & costs document. To view the current disclosure documents, select GSA from the Superannuation category at resolutionlife.com.au/performance.
GSA customers will be notified of the changes.
Updates to indirect investment costs for investment options
Every year we update the estimated indirect investment costs for each of our investment options, based on the underlying costs incurred over the last financial year. These underlying costs are deducted from the underlying assets of the investment portfolios and are reflected in the investment option's unit price or crediting rate.
When updating the estimated indirect investment costs, we make an assessment for each investment option as to whether the costs have changed significantly from the previous year. For most investment options, there have been no significant changes to the indirect investment costs. For a number of options (listed below), there has been a significant increase in the indirect investment costs over the last financial year. Customers who have been impacted by these changes will receive a letter from us shortly, providing them with more information.
| NMRF Product | Investment Option | Previous Indirect Inv Cost (% pa) | New Indirect Inv Cost (% pa) |
| MultiFund Flexible Income Plan | International Bond | 0.19% | 0.43% |
| MultiFund Flexible Income Plan | Listed Property 2 | 0.15% | 0.35% |
| MultiFund Flexible Income Plan | International Bond 2 | 0.40% | 0.76% |
| MultiFund Superannuation Bond | Listed Property 2 | 0.14% | 0.54% |
| Retirement Bond | Diversified Fixed Interest | 0.08% | 0.19% |
| Retirement Bond | International Shares | 0.01% | 0.13% |
| RLA Allocated Pension Plan | Australian Equities 3 | 0.08% | 0.23% |
| RLA Allocated Pension Plan | Wholesale Global Equity Fund | 0.00% | 0.15% |
| RLA Personal Super Plan | Diversified Fixed Interest | 0.08% | 0.19% |
| RLA Personal Super Plan | Australian Equities 3 | 0.10% | 0.24% |
| RLA Personal Super Plan | Wholesale Global Equity Fund | 0.02% | 0.16% |
| RLA Personal Super Plan | Specialist Australian Share | 0.27% | 0.42% |
For additional information on indirect investment costs, the latest fees and costs information for products and the current investment options, please visit resolutionlife.com.au/performance, select the product from the drop-down box available in the Superannuation or Retirement categories, and select the ‘Fees & costs’ and/or the ‘Investment report’ tabs.
Elevate product upgrade
We shared some exciting news with you back on the 19th of December 2024, that Resolution Life had upgraded Elevate, our flagship Insurance product, which offers a full suite of wealth protection covers and is available to all existing customers.
This upgrade ensures Elevate continues to provide the most appropriate cover for your clients and includes product features and benefits that consider premium affordability and allow flexibility to adapt a policy to meet their changing needs. Built with long term product sustainability in mind, our upgraded Elevate product suite is designed to balance those affordability and flexibility considerations.
Some the product enhancements include:
• New Premium and Cover suspension feature
• New Income Secure Essentials, meaning existing RLA customers without income protection can apply for cover
• New Trauma cover included
• Improvements for existing trauma events.
Your existing Elevate clients have benefitted from many of these improvements being passed back to them.
New Business post the 16 December 2024 Elevate upgrade product launch
With the new Income Insurance Essentials Plan now launched, the ‘old’ Income Insurance Plan, Income Insurance Plus Plan, Income Insurance Premier Plan, Income Insurance SMSF Plan and Income Insurance Superannuation Plan are now to closed to new applications.
No new policies will be issued for these ‘old’ plans (which includes clients who already have these plans and want to do a cancel and replace, to change ownership of the policy).
Income Insurance Essential plan transfer and conversions guide
The existing transfer rules apply to all transfers and should be consulted as the primary reference. For detailed information, please refer to the 2025 Transferring cover across Resolution Life insurance products guide for these rules.
Care will need to be taken on transfers to Income Insurance Essentials to ensure the life insured is not over insured, given the replacement ratio is 70% and with this in mind, we will rely on the adviser entering the correct income (without Super) in the quote tool. Income will need to be confirmed when assessing the transfer of cover.
You can also refer to the Income Insurance Essentials transfers and conversions hints and tips flyer, which will help you navigate some common scenarios.
Elevate upgrade adviser hub
A dedicated Elevate upgrade adviser hub has been developed, and contains a comprehensive suite of tools and resources including:
• New PDS and TMDs
• Old versus new Income Protection product comparisons
• New underwriting guide
• Income Protection transfer guide
• New application form
• New personal statement
• New product summary flyers.
You can also access the dedicated Elevate adviser hub.
Contact us
If you have any questions, you can chat with us online or contact our Adviser Support team.
Renewal and Overdue notices weekly email
Since April 2024, we’ve been sending regular weekly emails advising you of clients who have missed payments, and are at risk of lapsing or who have lapsed.
From February 2025, you’ll receive:
- an updated email that includes:
- a summary table showing the number of missed payment, pre-lapse and lapse notifications sent to customers and the value of annual premium at risk
- the number of customers that received Renewal notifications.
- this email is only sent if one or more of your clients received one of the relevant notifications that week.
Previous email sample (398 kB)
New optimised email sample (107 kB)
We’re committed to supporting you and your clients with products and services that meet your needs. You can
• Learn more about the existing report
• Read more on flexible policy and payment options
• Make payments online.
If you have any issues with this email or report, or want to discuss client payment options, please chat with us online or contact your adviser support team.
Pre-renewal customer education campaign
We want to help clients keep the insurance they need. We understand that life is constantly evolving, and so are client needs.
Through looking at different client journeys, we have identified areas where we can help and have created additional tools and resources to help clients make informed decisions.
Customer education during the renewal journey
To further support our joint customers in the lead up to their policy renewal, we’ll be delivering tailored communications and digital content for three key age bands: <50, 50-59, and 60+.
This campaign will be delivered in multiple phases, the first focusing on the 60+ year old customers. The campaign will include an email, with supporting digital content addressing key concerns of older customers as it relates to their insurance cover (declining need, affordability) and provide information about the importance and value of insurance through retirement, how to review and right-size cover and the available product options.
Content will be available online on a dedicated landing page, including videos and additional resources, helping to increase engagement and guide customers in making informed decisions.
Who will be contacted?
From the end of February, we’ll contact all customers with a Resolution Life retail policy aged between 60-70 years of age, who have consented to marketing communications, 90 days out from when their policy is due to renew. Emails will be automatically triggered based on the policy renewal date.
We're here to help
If you’d like further information about the lifestage communication, please chat with us online or contact your adviser support team.
Upcoming changes: Level Premium Rates
If you recently received a communication from us about upcoming level premium refund payments and future premium changes, you may have clients who are impacted.
If you’d like to know more, please refer to the communication we sent to you in December 2024. You can also view more information to help you support your customers. Alternatively, your Adviser Support Manager or Strategic Partnership Manager can help you to support your clients through this change: advisersupport@resolutionlife.com.au.
We’ve updated the Elevate Insurance Underwriting Reference Guide
In conjunction with the recent upgrade to our Elevate Insurance product, we’ve updated the Elevate Underwriting Reference Guide. This Guide is a handy tool which provides information on our underwriting requirements and processes.
This new guide includes a range of additional information, including the rules for adding options and plans on existing Elevate policies, along with information on our digital underwriting processes which includes reinstatements within 90 days of lapse date, smoker rate alterations and occupation rating upgrades.
The updated Elevate Underwriting Reference Guide is available on the Elevate Upgrade Adviser Hub.
Important information
Any advice and information on this website is general in nature and is provided by Resolution Life Australasia Limited ABN 84 079 300 379, AFSL No. 233671 (Resolution Life), which is part of the Resolution Life Group and can be contacted on 133 731 or via the contact us page. The advice does not take into account your personal objectives, financial situation or needs. Therefore, before acting on the advice, you should consider the appropriateness of the advice, having regard to those matters as well as the relevant product disclosure statement (PDS), available from Resolution Life at resolutionlife.com.au or by calling 133 731, before making a decision about the product. Consider speaking to a financial adviser if you have any concerns.
If you decide to purchase or vary a financial product, Resolution Life and/or other companies within the Resolution Life Group will receive fees and other benefits, which will be a dollar amount or a percentage of either the premium you pay or the value of your investments. You can ask us for more details.
