The superannuation portfolio holdings disclosure regime will disadvantage the super industry because it does not include all market participants, including the future fund, according to the Association of Superannuation Funds of Australia (ASFA).
ASFA said Australian super funds needed to compete on a level playing field as competing institutional investors in global markets were not subject to this disclosure.
“To compel the trustees of Australian superannuation funds to disclose information that does not have to be disclosed by other investors represents a material distortion of the market,” ASFA said.
The Future Fund would be excluded from the regime, as ASFA noted the stated underlying policy rationale for exclusion of the Future Fund was:
“All of these statements apply equally to Australian superannuation funds,” ASFA said.
“Given this, there is a need to ensure that superannuation portfolio holdings disclosure does not compromise the ability of superannuation funds to implement investment strategies, risk investment managers’ engagement, produce negative effects on investment outcomes, reduce access to investment opportunities or make Australian superannuation funds less attractive as clients.”
ASFA said the disclosure would be available to all market participants, placing Australian super fund trustees and a material disadvantage when investing.
“All other investors, domestic and global, will have detailed information about the investments of Australian superannuation funds that other investors in the same market are not required to disclose,” ASFA said.
As a direct result of portfolio holdings disclosure, ASFA said Australian super funds would:
“ASFA supports the objective of superannuation funds transparency. It is important, however, that this is done in the best interest of fund members,” ASFA said.
There is a need for Australia’s superannuation funds to simplify their investment menus, according to the firm, given over a third of funds have more than 30 options, of which one or more are “arguably subscale”.
The research house is set to offer research ratings of superannuation funds for the first time amid growing demand from financial advisers.
Treasury is calling for submissions on its draft regulations in relation to the calculation of the proposed Division 296 tax.
Initially intended to offer a “simple, cost-effective” option for Aussies invested in default fund options, a super consultant has weighed in on what the scheme has actually done for members.
Add new comment