Treasurer Jim Chalmers has held talks with some of the country’s largest pension funds to discuss the future of the annual performance test, which has drawn criticism from some industry figures who say the strict criteria limits investment in innovative start-ups and creates uniform strategies at funds.
The four-year-old test administered by the Australian Prudential Regulation Authority ranks funds based on the yearly and longer-term returns on their investment, net of fees, against a benchmark created by the regulator. While designed to inform consumers, some super funds argue it has led to perverse outcomes.
Loading…