Australian funds should embrace mandatory transparency
Australian superannuation funds should not the experience in the US and not be resistant to greater transparency around investment performance and cost, according to Vanguard chairman, Bill McNabb.
Addressing the Association of Superannuation Funds of Australia (ASFA), McNabb noted the attitude to such transparency but said the requirements flowing from the Dodd Frank in the US had ultimately proved to be beneficial.
He said that the US investment industry had originally resisted the transparency requirements with respect to cost and performance but this had proved to be a mistake.
McNabb said that while the requirement had originally be voluntary, it had elicited little support from firms in the US and was not mandatory.
“We fought the idea, but we should not have fought it,” he said.
“Transparency around cost and performance has proved a driver to competition and beneficial change,” McNabb said.
Recommended for you
Women are expected to inherit US$124 trillion through the intergenerational wealth transfer, but Capital Group has found they are twice as likely to rely on social media for advice over a financial adviser.
Challenger Investment Management has raised $350 million during the offer period for its new ASX-listed investment structure.
A week after Lonsec downgraded multiple funds from Metrics Credit Partners, rival research house Zenith Investment Partners has opted to retain its ratings for the same funds.
Strong adviser engagement has helped Praemium reach $1 billion in inflows on its Spectrum offering, with a deal with Western Australian wealth firm Euroz Hartleys expected to add as much as $2 billion.
