The global investment environment will continue to provide superannuation funds with the diversification necessary to deliver good retirement outcomes to fund members, says the Association of Superannuation Funds of Australia (ASFA) as it hosts its Investment Interchange in Sydney today.
ASFA Director of Investments Mr Gordon Noble says as the pool of superannuation capital grows, funds will no doubt invest more off shore.
"Australian superannuation funds currently have a strong home bias, but this will change as the pool of retirement savings continues to grow and funds look for opportunities to diversify their investments. This is why the opportunity for superannuation to invest globally should be seen as a positive.
"Offshore superannuation investments provide superannuation fund members with the ability to achieve their retirement objectives by providing a range of investment opportunities that are not readily available in Australia."
Mr Noble says to successfully manage international investments, superannuation funds need to be able to manage a raft of complex issues including understanding:
- the impact that currency can have on portfolio returns and how decisions to hedge portfolios can impact fund liquidity
- the role that global financial regulation will play in shaping the global investment environment
- risks in the global economy
- challenges and opportunities in global equities and fixed-interest markets.
"With the Financial System Inquiry, there will be a continued focus on how Australia's financial system can be adjusted to best take advantage of the opportunities posed by an increasingly globalised economy. The global investment environment is complex and not without its challenges, which is why it's important this conversation include a wide range of stakeholders, with a diverse range of expertise to help manage the challenges ahead.
"Today's event is about bringing together the investment community, policymakers and other industry stakeholders to ensure we can overcome the challenges posed by this new investment landscape and harness the opportunities to deliver the best outcomes for superannuation fund members," Mr Noble concluded.
For further information, please contact:
Lisa Chikarovski, Media Manager, 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, which aims to advance effective retirement outcomes for members of funds through research, advocacy and the development of policy and industry best practice.