Sydney Buy-side Forum focusses in on Australia’s Superannuation Reform

Australian government vows action to tackle structural flaws in nation’s A$2.8 trillion pensions industry; focus on elevating outcomes for superannuation members

Senator Jane Hume delivering her debut speech as Australia’s Assistant Minister for Superannuation, Financial Services and Financial Technology at the Sydney Buy-side Forum 

Bloomberg this week hosted more than 200 clients in Sydney at its fourth annual Buy-side Forum in Australia, where some of the most influential figures in institutional investing came together to discuss the many changes sweeping through Australia’s financial industry. A range of themes were discussed, including the biggest threats to global economic growth, the potential for quantitative easing in Australia if the economy falters and the impact of China’s inclusion in global bond indices.

The focus for the day was the state of Australia’s superannuation industry as it faces fresh calls for structural reform. In her debut speech, Senator Jane Hume, Australia’s Assistant Minister for Superannuation, Financial Services and Financial Technology called for improving efficiency in the system, lowering costs and promoting informed member choice and competition in the world’s fourth largest pension pool.

Australia’s Productivity Commission found a number of structural problems in the country’s superannuation system and concluded that the prevalence of unintended multiple accounts, pockets of entrenched under-performance have eroded members’ trust in the system.

“We must never forget the most important foundation – the touchstone – of Australia’s compulsory superannuation system: savings belong to members,” she said, adding, “It’s clear even from our discussion today that this is a crucial time for financial services in Australia and every person in this room will play a part in shaping the future of this vital industry.”

The forum also tackled other challenges facing the superannuation industry, including its search for yield abroad as assets outgrow its home market and how investment firms can provide adequate returns for Australia’s next wave of risk-adverse retirees.

“Changes are afoot everywhere and getting the best information is critical to maintaining an investment edge,” said Heena Chakravorti, Head of Oceania for Bloomberg. “Despite these various global and industry challenges, we look at the world through a lens of opportunity and designed these forums to help the buy-side prepare for an exciting future. We look forward to playing our part in the superannuation industry’s push for transparency and help them pursue better outcomes for their millions of members.”

For details about how we support the technology needs of asset owners and managers around the world, please contact your local Bloomberg representative or click here.