POWERED BY MOMENTUM MEDIA
Industry funds rail against Government ‘kill switch’
Industry superannuation funds are accusing the Government of unprecedented legislative over-reach within its Your Future Your Super legislation particularly around powers to ban superannuation fund investment and expenditure decisions.
Both Industry Super Australia (ISA) and the Australian Institute of Superannuation Trustees have signalled they will be pushing for the legislation to be reviewed by a Senate Committee.
Australian Institute of Superannuation Trustees (AIST) chief executive, Eva Scheerlinck said that while her organisation supported the intent of the legislation it stopped well short of addressing under-performance across the superannuation sector.
What is more, she said that the legislation lacked important detail around the power of the Government to ban any super fund or investment or expenditure regardless of whether it was in members’ best interests.
“This is an extraordinary over-reach of power with no precedent in this country,” Scheerlinck said. “The change removes the certainty needed for long-term investing and risks significant impact on investment outcomes for members.”
For its part, the ISA described the Government’s proposed new powers as “regulatory kill switch” which was unnecessary and an ideological overreach.
“Reports today suggest extreme elements of the Coalition party room will try and use this power to ban fund ESG investment or vital investments in affordable housing. An added regulation making power is equally concerning, it appears it would allow the minister to dictate what is in members' best financial interest giving politicians unfettered control over workers' super.”
However, the ISA’s own approach calls for legislative changes which would force the closure of underperforming funds.
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
