Portfolio disclosure obligations likely to increase costs

Any move to impose portfolio disclosure obligations on superannuation funds carried with it the likelihood of imposing higher costs and administrative burdens, according to Franklin Templeton Investments managing director Maria Wilton.

Speaking during a panel session during the Conference of Major Super Funds (CMSF) on the Gold Coast, Wilton cited the cost estimate generated by the Australian Institute of Superannuation Trustees (AIST) of $100,000 per fund as being indicative of the upper end of the impact of the regime currently being proposed for implementation.

Wilton also warned that such a regime which revealed the total make-up of portfolios being run by superannuation funds ran the risk of gaining the attention of interest groups.

"There exists a real risk that interest groups will trawl for things they don't like and this is likely to create distractions for funds," she said.

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Wilton suggested the move could also give rise to further short-termism as funds looked at the portfolios of other funds and were therefore tempted to chop and change.

Morningstar Australia chief executive Anthony Serhan differed with Wilton, suggesting that it might be a positive manifestation in terms of keeping members informed and generally safeguarding the broader super system. He said it would serve to bring to life portfolios by revealing what is in them.