ASFA defends position of tremendous funds in non-public | Australian Markets
Main superannuation funds foyer group, the Affiliation of Superannuation Funds of Australia (ASFA), has defended the position of superannuation funds in non-public capital markets.
On the identical time, ASFA has warned towards overloading funds with regulation, making investment in non-public markets much less engaging.
Commenting on an Australian Securities and Investments Fee (ASIC) deep dive into capital markets which particularly famous the position of superannuation funds, ASFA stated “every single Australian with a superannuation account has benefited from the sophisticated approach that super has taken to exposure in private markets”.
Additional, it stated these non-public market investments had been delivering sturdy outcomes for members, together with double digit returns in 2024.
“Private markets are important for improving diversification within superannuation fund portfolios, thereby improving the reliability of long-term returns for members,” ASFA stated.
“ASIC’s research shows how concentrated the listed equity markets have become, specifically for the US within global equity markets but also within Australia,” it stated. “Any increase in regulatory burden by ASIC (or more broadly) could disincentivise superannuation funds from diversifying out of listed markets which has the potential to impact members’ retirement funds.”
“The publicity to personal markets has been a great driver of returns for Australians. It’s important to recollect tremendous funds have delivered typical returns of not less than 10.5 per cent for 2024, which is actual money in actual accounts for actual people retiring.
“ASIC’s media commentary this morning suggests their areas of curiosity are primarily areas that APRA has carried out intensive work on over a quantity of years together with liquidity, governance, valuations and system resilience. We encourage the regulators to work with each other to keep away from any attainable duplication of effort by the funds and we are going to draw this out in our complete response.
“Strengthening practices is important, but every minute the super funds spend responding to duplicative regulatory requests is a minute they cannot spend servicing members and building members’ retirement funds.”
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