POWERED BY MOMENTUM MEDIA
ASFA urges caution on PC report
Any changes to Australia’s superannuation system flowing from the Productivity Commission’s latest draft report need to acknowledge the world-leading nature of the existing regime and the diverse needs of members, according to the Association of Superannuation Funds of Australia (ASFA).
While welcoming some elements of the PC report, ASFA has warned that the recommendations, if implemented, have the potential to materially transform the industry.
“The proposal to allocate default superannuation to ten so called ‘best-in-show’ funds would dramatically change the retirement funding landscape, and raises questions with respect to innovation, competitive intensity and diversity,” ASFA chief executive, Dr Martin Fahy said.
He pointed out that Australia has a world-class superannuation system and that the PC’s draft report had acknowledged that the majority of members and assets in the system were in products that had performed reasonably well.
“What’s more, only a small share of members are dissatisfied with their fund’s performance,” Fahy said.
“Any changes to the system need to recognise the diverse needs of fund members,” he said. “Members’ needs differ widely, including with respect to their occupation and their location.”
“In particular, many smaller funds are able to provide niche offerings to their members, including tailored insurance and investment options, and the importance of this to members should not be underestimated.”
Recommended for you
Superannuation funds have posted another year of strong returns, but this time, the gains weren’t powered solely by Silicon Valley.
Australia’s $4.1 trillion superannuation system is doing more than funding retirements – it’s quietly fuelling the nation’s productivity, lifting GDP, and adding thousands to workers’ pay packets, according to new analysis from the Association of Superannuation Funds of Australia (ASFA).
Large superannuation accounts may need to find funds outside their accounts or take the extreme step of selling non-liquid assets under the proposed $3 million super tax legislation, according to new analysis from ANU.
Economists have been left scrambling to recalibrate after the Reserve Bank wrong-footed markets on Tuesday, holding the cash rate steady despite widespread expectations of a cut.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
