The superannuation industry had its annual opportunity to look at the big picture themes affecting the sector.
Last month’s Conference of Major Superannuation Funds in Brisbane explored the competing challenges of regulation, investments, climate change, governance, member education and insurance.
The conference also assumed a distinctly forward view on adopting the themes shaping the nation for the future.
The credit markets continue to pose challenges. This month features a roundtable of consultants and fund managers that explored how market turbulence has transformed fixed income and the prospect of further pain.
While the shaky markets certainly provide challenges ahead for the industry, the sector’s future is still looking bright.
As a relatively young country, Australia already boasts a pension system that is worth more than $1 trillion. Its compulsory superannuation system has been looked at by other countries and it boasts the fourth largest funds management industry in the world.
In the first few months in office the Rudd Government has increased its attention of the industry.
Looking at lost super, heighted scrutiny of self managed superannuation funds and simplification of disclosure documents are some of the Government’s priorities.
Alongside these priorities, is a greater focus on the exportability of Australia’s financial services industry.
Figures from Austrade show the industry represents 7.2 per cent of gross domestic product.
The sector has also emerged as dominant player in the Australian economy, alongside (and perhaps larger) than the country’s traditional manufacturing and agricultural sectors.
At $68 billion, the financial services sector is the third largest in the Australian economy.
Investor Weekly deputy editor Victoria Young spoke exclusively to Assistant Treasurer Chris Bowen about his plans for shaping the funds management sector into a competitive export industry.
The Government has also established a new group within Austrade to spearhead its initiatives in the area. Austrade’s new man on the job Peter Osborne speaks to us about his plans for the industry.
Osborne expects to meet with the industry over the next week so expect a door-knock from him shortly.
Perhaps the last word belongs to Investment and Financial Services Association chief Richard Gilbert.
A long-standing advocate to shore up the export of financial services industry, Gilbert has welcomed the Government initiative. More importantly he noted a greater focus on the industry from Canberra.
As he says,” the Government has things planned and we are on its agenda. That’s a very positive thing.”
