The Association of Superannuation Funds of Australia (ASFA) has urged industry stakeholders to proceed with caution following the release of The Australian Prudential Regulation Authority’s inaugural heatmap.
“ASFA supports measures that help trustees deliver better outcomes to members and in this regard the APRA heatmap brings increased transparency to the superannuation landscape,” said ASFA CEO, Dr Martin Fahy.
“Let’s be careful however not to jump to erroneous conclusions that may impact the entire category, or damage member outcomes with knee-jerk reactions from anti-retirement groups.”
Dr Fahy warned of the potential for unintended consequences from APRA’s methodology, particularly its decision to focus on the short term three- and five-year performance of individual products.
“Achieving sound investment performance and broader member outcomes is a long-term journey, it’s not measured in terms of years, it’s measured in terms of decades,” Dr Fahy said.
“Australia’s superannuation system is ranked as the third best globally and according to the OECD, has about the best investment returns and lowest costs charged to fund members anywhere in the world,”
“Imagine if Australia’s education system was ranked third best globally, people would be celebrating in the streets.”
Dr Fahy also noted that APRA’s recent efforts to engage with funds to improve performance in accordance with the member outcomes legislation is the appropriate way forward.
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.