The Labor MP expressed support for some kind of a performance benchmark to hold underperforming funds to account, but he said the government’s current proposal falls short during an interview on Monday.
A proposal, released on Thursday for industry consultation, suggests a scoring system to help map unlisted assets to appropriate growth/defensive scores as part of its plan to create asset category standardisation.
Changing the default system was subject of the Productivity Commission review and has remained on the government’s plan in parallel with the ‘best in show’ and APRA’s heat map concepts designed to put a spotlight on underperforming funds.
Mercer has called for a universal age pension, scrapping the means tests and keeping the superannuation guarantee at 9.5 per cent in its Retirement Income Review submission. This would be a blow for many super funds especially those with flat or negative inflows.