In a statement ahead of the Investment Interchange in Sydney yesterday, ASFA said the global investment environment will continue to provide superannuation funds with the diversification necessary to deliver good retirement outcomes to fund members.
ASFA director of investments Gordon Noble said Australian superannuation funds currently have a “strong home bias”.
“This will change as the pool of retirement savings continues to grow and funds look for opportunities to diversify their investments. This is why the opportunity for superannuation to invest globally should be seen as a positive,” he said.
"Offshore superannuation investments provide superannuation fund members with the ability to achieve their retirement objectives by providing a range of investment opportunities that are not readily available in Australia," he added.
Mr Noble said to successfully manage international investments, superannuation funds need to be able to navigate a raft of complex issues.
Currency exchange, global financial regulation and economy risks are issues superannuation funds need to be mindful of, ASFA said.
“With the Financial System Inquiry, there will be a continued focus on how Australia's financial system can be adjusted to best take advantage of the opportunities posed by an increasingly globalised economy,” Mr Noble said
“The global investment environment is complex and not without its challenges, which is why it's important this conversation includes a wide range of stakeholders, with a diverse range of expertise to help manage the challenges ahead,” he added.
