The Association of Superannuation Funds Australia (ASFA) will be pushing industry to project future performance using a “balanced scorecard”, according to its chief executive officer, Pauline Vamos.
In line with more transparent reporting protocols, Vamos says while the focus in super has traditionally been past performance, there are ways to give indicators of future performance.
“Some funds do it individually, but we think it is something that can be done across the industry,” she says.
“This is done all the time in the listed-company space by analysts.”
It’s never been a focus in super, but Vamos thinks greater competition and more choice with providers makes it important to have a scorecard looking at potential future performance.
“As more and more people think harder about where they’re going to put their super, including what assets and what provider, we thought it was important for the industry to come up with [a] balanced scorecard.”
Vamos says the greater the transparency, the greater the trust.
“This is all about really building that consumer confidence in the industry, so we’ve started the project.”
Vamos says ASFA will call on industry to form working groups or councils to deliver the project. Watch the video to learn more about the organisation’s strategy on balanced scorecards.