The Association of Superannuation Funds of Australia (ASFA) has set an optimistic outlook for 2024, projecting double-digit returns for superannuation funds. The organization also highlighted the ongoing importance of private market investments for enhancing portfolio diversification and supporting long-term growth.
ASFA’s CEO, Mary Delahunty, underscored the role of private market investments in strengthening the stability of superannuation funds. These investments, she noted, are crucial in sectors like housing, infrastructure, life sciences, and private credit, which contribute to both portfolio diversification and long-term financial resilience.
In addition to its positive return forecasts, ASFA committed to engaging with its members to address inquiries from the Australian Securities and Investments Commission (ASIC). However, the association cautioned that any increased regulatory burdens could hinder super funds’ ability to diversify beyond listed markets.
Delahunty pointed out that ASIC’s concerns often overlap with the Australian Prudential Regulation Authority’s (APRA) ongoing focus on issues such as liquidity, governance, valuations, and system resilience. To avoid unnecessary duplication, she called for greater coordination between regulators, stressing that excessive regulatory demands could divert super funds from their primary focus of growing members’ retirement savings.
ASFA reaffirmed that super funds have consistently delivered strong returns, with 2024 projections exceeding 10.5%, translating into direct benefits for Australians’ retirement savings.
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