28 April 2021
Changes to Superannuation Performance Benchmark a welcome move.
The changes to the proposed superannuation performance benchmark announced today by the Government recognise the important role that investment in unlisted assets and infrastructure plays in superannuation returns.
ASFA CEO Dr Martin Fahy said “Australian superannuation funds’ strategic asset allocation, including the significant allocation to unlisted investments, has been an important element in their outperformance compared to international peers.”
“The changes announced today have the potential to mitigate investment distortions foreshadowed by the industry when the benchmark was first announced.”
ASFA also acknowledged the Government’s decision to include administration fees in the benchmark.
“Including all fees in the proposed benchmark will help align the benchmark to the reality of the returns members see in their superannuation, and help address any anomalies that different cost definitions might cause when comparing the performance of different products,” concluded Dr Fahy.
Now that the regulations have been released, ASFA will work with its members to understand the details and engage constructively with the Government in the coming weeks on this important policy area.
For further information, please contact:
Jacqui Maddock, 0451 949 300.
ASFA is the peak policy, research and advocacy body for Australia’s superannuation industry. It is a not-for-profit, sector-neutral, and non-party political, national organisation. ASFA’s mission is to continuously improve the superannuation system, so all Australians can enjoy a comfortable and dignified retirement.