In a speech to the superannuation investment community this morning, ASFA CEO Mary Delahunty welcomed the Treasurer’s review of the super performance test, saying modernising the test will provide the certainty and flexibility funds need to maximise investment returns for members.
Ms Delahunty said modernising the test would build on its successes to date in ensuring members are in well-performing funds, while giving funds greater scope to diversify and innovate in their investment approaches. This is why ASFA had advocated strongly for a review at the Economic Reform Roundtable, she added.
Ms Delahunty’s was speaking at the opening of the ASFA Investment Summit, the premier event for superannuation investment teams in Australia.
“It is crucial that in a compulsory system, we have measures of performance. The performance test has been an important part of the way super does business for half a decade now, it exists as a tool to help members make good decisions about where to put their money and to ensure that underperformance can be dealt with at a system level. When we have strong regulation and good transparency, members will have confidence in our system,” Ms Delahunty said.
“The opportunity exists to modernise this test, to ensure that it is fit for purpose for future opportunities. Regulation should not be set and forget. As the people in this room well know, the performance test has given rise to unintended consequences, including benchmark hugging and encouraging investment strategies that are increasingly similar.
“Modernising the test should give funds the confidence to pursue innovative, more differentiated strategies – including backing specialised managers, investment opportunities that arise but may be underweight in the benchmark or even appropriate early-stage opportunities in an array of sectors and asset classes.
“This is not about pursuing particular agendas or meeting government investment priorities – it’s about meeting the priority of our members – the best, risk-adjusted returns.
“We have a brilliant cohort of investors in the country, and it is right that they – you – are enabled to do your jobs to the best of your ability. Modernising the performance test will allow you to do that.
“At times, what is in members’ best interests will align with broader policy goals, such as increasing the supply of housing, or catalysing clean energy at scale. High-return asset classes often deliver positive externalities – but those will be incidental outcomes, not the reason for reform in the first place,” Ms Delahunty said.
The Brisbane event is ASFA’s second annual Investment Summit and is focused this year not only on investment strategy but also on the operational functions of investment teams. The one-day summit has brought together 150 leaders from across the investment community.
ENDS
A transcript of Mary Delahunty’s full welcome speech to the 2025 Investment Summit is available here.
For further information, please contact:
ASFA media team
0451 949 300
mediaunit@superannation.asn.au
About the Association of Superannuation Funds of Australia (ASFA)
ASFA, the voice of super, has been operating since 1962 and is the peak policy, research and advocacy body for Australia’s superannuation industry. ASFA represents the APRA regulated superannuation industry with over 100 organisations as members from corporate, industry, retail and public sector funds, and service providers. We develop policy positions through collaboration with our diverse membership base and use our deep technical expertise and research capabilities to assist in advancing outcomes for Australians.
We unite the superannuation community, supporting our members with research, advocacy, education and collaboration to help Australians enjoy a dignified retirement. We promote effective practice and advocate for efficiency, sustainability and trust in our world-class retirement income system.