Significant Investor visa welcome

A new visa class for foreign investors targeting innovation is a welcome development for Australia, the peak body for superannuation said today.

The Association of Superannuation Funds of Australia (ASFA) said the Significant Investor visa will, in the long run, benefit superannuation fund members.

Companies that innovate, which in the Australian context mainly consist of unlisted venture capital funds and companies listed on the ASX, have an important role to play as part of a diversified investment portfolio.

Superannuation funds are long-term investors in the Australian economy. In order to meet the objective of providing superannuation fund members with the ability to enjoy retirement in dignity and comfort, superannuation funds invest in a portfolio of assets with the objective of delivering long-term investment returns.

From a practical perspective this means that superannuation funds invest in different asset classes including equities, property, infrastructure, bonds and private equity over the working life of the average superannuation fund member.

Creating a sustainable and growing innovation market, including increased depth and liquidity of Australia’s venture capital market, is in the interests of superannuation fund members who will benefit from the diversification of investment opportunities and through enhanced long-term risk-adjusted investment returns.

ASFA is supportive of the Government’s announcement to encourage business investors with a history of innovation to migrate to Australia and invest in innovation.

It is important that the Government’s stated policy objectives are met in reality. To this end ASFA will be examining the Government’s proposals in detail with a focus on ensuring that new investment does indeed go into innovation, and does not distort other parts of the economy.

For media inquiries, please contact:

Pauline Vamos, CEO, 0433 169 342

Rebecca Glenn, GM Marketing and Communications, 0416 170 439

Megan McDougall, Media and Communications Coordinator, (02) 8079 0849

About ASFA – the voice of super

The Association of Superannuation Funds of Australia is the peak industry body for superannuation and retirement policy and research. ASFA is the only organisation that represents all types of superannuation funds (retail, industry, corporate and public sector) and associated service providers. ASFA members manage or advise on the bulk of the $1.3 trillion in superannuation assets as at September 2011. Its members represent over 90 per cent of the approximately 12 million Australians with superannuation.