Unstable policy hinders super funds’ ability to help economic recovery

22 May 2020
| By Jassmyn |
image
image
expand image

Superannuation funds can play a major role in the country’s economic recovery from the COVID-19 pandemic by investing in infrastructure and raising capital for Australian companies but policy certainty is needed, according to Rest. 

The industry super fund’s chief executive, Vicki Doyle, said in order to invest in infrastructure and raise capital, it was critical that super funds had stable policy settings as any uncertainty would constrain the ability to invest for the long-term. 

“It’s important that a short-term approach to the current crisis does not create a longer-term crisis for Australia’s retirement savings. If members’ super is regularly called upon to provide short-term fiscal support to the economy, it changes the way we invest on behalf of our members. We would need to consider shorter-term investment horizons and different asset allocations,” Doyle said. 

“With policy certainty, there is a greater opportunity for our members to benefit from investments that also support Australia’s economic development and recovery.” 

Doyle noted that Rest had $8 billion invested in Australian infrastructure assets including airports, pipelines and renewable power generation, and was a long-term investor in the agricultural sector. 

She also said that since the Government’s early access to super scheme for members in financial hardship due to the pandemic had begun, the fund had paid on average 8,500 applications, or $60 million per business day. 

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 3 days ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 1 day ago

Having divested its advice business in August, AMP is undergoing restructuring in at least four other departments amid a cost simplification program....

2 weeks 5 days ago