ASFA – the Voice of Super, welcomes the industry’s call for truth in labelling of investment portfolios and notes that the industry is working collaboratively to improve disclosure in this regard.
“ASFA has taken a number of initiatives and I believe the industry is closer now than ever before to an agreement,” says ASFA chief executive Pauline Vamos.
“This is not just about defining asset classes. We need a uniform measure on performance that includes after tax and after investment fees on a risk-rated basis.
“We are in partnership with FTSE on a series of after tax indices that will shortly be expanded to include Capital Gains Tax. The modelling for CGT has been done and the updated indices will be released next year.
“We have also been part of a working group that comprises various industry representatives, including from the Financial Services Council, on risk modelling. This work, which will feed into consideration by APRA and ASIC, is expected to be finished by the end of the year and will form the basis of funds being able to be compared on a risk-rated basis.”
Ms Vamos said that it is high time that terms used to describe risk of investment to consumers are defined and applied uniformly across funds.
“But we know the names mean nothing unless they are risk-rated. This working group is finally going to achieve an industry-wide agreement on this issue.
“This has been an outstanding issue for far too long and is an issue where the industry is showing that it can work together – for the ultimate benefit of fund members.
“The next step is to translate the outputs of the working group into consumer-friendly symbols and ASFA is leading the discussions on this.”
Ms Vamos says the biggest pressure on the industry for the next 12 months will be to show how it can collaborate on the issues that will provide a better member experience.
For further information, please contact:
Pauline Vamos, ASFA Chief Executive, 0433 169 342
Michelle Dunner, ASFA GM Marketing and Communications, 0412 704 016
Sarah O’Grady, ASFA Communications Co-ordinator, 0410 439 966
About ASFA
The Association of Superannuation Funds of Australia (ASFA) is the peak industry body for the entire superannuation sector. It is the only industry body that represents all types of superannuation funds, service providers and fund members.