The majority of retail investors do not believe superannuation funds should be involved in stock lending, according to an Australian Shareholders' Association (ASA) survey.
"Investors believe that superannuation funds should exist to protect their members rather than just outperforming the index," ASA chief executive Stuart Wilson told a panel at the Conference of Major Superannuation Funds on the Gold Coast this week.
"If superannuation funds need to engage in securities lending, then they must explain this practice to members."
Alternative Investment Management chair Kim Ivey said investors should note that stock lending and short-selling were two distinct practices.
"In some cases, stock lending may involve short-selling, but only up to 20 per cent of the stock lending," Ivey said.
The survey of ASA members also found 71 per cent of investors wanted a blanket ban on short-selling and that the current ban on the short-selling of financial stocks was effective.
Around 19 per cent of investors do not believe ASIC is doing an adequate job in addressing market issues around short-selling.
"Our members feel that ASIC should not be the only regulator overseeing the regulation of short-selling," Wilson said.
The research surveyed 1000 ASA members who were all self-funded retirees with substantial stock portfolios.
