Private markets regulation ‘must not hinder super fund investment’, ASFA warns

InvestorDaily

The government must ensure that any new reforms to the regulation of private markets does not “unduly hinder” participation by super funds in this market, the Association of Superannuation Funds of Australia (ASFA) has warned in a recent submission. In a submission to the government’s Economic Reform Roundtable, ASFA explained that superannuation funds invest in private assets as part of a wholistic portfolio approach designed to deliver the best possible risk-adjusted returns to members. “In this regard, private assets can provide particular benefits to diversified investment portfolios, which compliment investments in public assets,” the industry body said.

These assets can offer significant diversification benefits, it said, and encompass a broad range of asset classes such as unlisted infrastructure, unlisted property, private equity and private debt or credit. “Each of these asset classes has distinct risk and return profiles, spanning the growth spectrum – from high-growth opportunities like private equity to mid-risk investments such as property and infrastructure, and low-risk options like private credit, depending on portfolio credit rating,” it said.

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