Transparency is becoming more important to Australians. The government has recently released new rules ensuring that all super funds are to disclose their portfolio holdings to members.
This means that Australians will have access to the information regarding how superannuation funds are utilising their funds, where and how they are investing it. This clarity can give people more confidence over the process, a feeling of more control and a deeper understanding.
In particular, the regulations require that superannuation funds disclose information about their identity, value and weightings of their investments. This was confirmed by superannuation minister Jane Hume.
She went on to say that all members will be able to clearly see where their money is being placed. That they will be able to see how much of their retirement savings are being invested across a diverse range of asset classes and derivatives.
Under the regulations, superfunds need to report their first holdings by 31st March 2022, with disclosure statements occurring every 6 months or so. It was found that our current system was painfully opaque and did not meet global best practice.
Superannuation funds have become an important part of Australia’s financial system, so it is necessary for us to have the ability to understand the use of derivatives, for example, and any implications on our financial system that could come as a result.
It also allows local funds to be able to compete on an even footing in the global market.
This all means that investment considerations made by Australians can continue to have a positive influence on their future and as a result, on the economy.