Australian funds should embrace mandatory transparency
Australian superannuation funds should not the experience in the US and not be resistant to greater transparency around investment performance and cost, according to Vanguard chairman, Bill McNabb.
Addressing the Association of Superannuation Funds of Australia (ASFA), McNabb noted the attitude to such transparency but said the requirements flowing from the Dodd Frank in the US had ultimately proved to be beneficial.
He said that the US investment industry had originally resisted the transparency requirements with respect to cost and performance but this had proved to be a mistake.
McNabb said that while the requirement had originally be voluntary, it had elicited little support from firms in the US and was not mandatory.
“We fought the idea, but we should not have fought it,” he said.
“Transparency around cost and performance has proved a driver to competition and beneficial change,” McNabb said.
Recommended for you
At least two-thirds of ETF flows are understood to be driven by intermediaries, according to Global X, as net flows into Australian ETFs spike 97 per cent in the first half of 2025.
Inflows for the first half of 2025 for GQG Partners stand at US$8 billion, but the firm has flagged fund underperformance could be a headwind for future flows.
BlackRock has announced its plan to acquire real estate investment firm ElmTree Funds which will be integrated into its new private financing solutions business.
With share price growth of 45 per cent for FY25, Australian Ethical has shared why it believes the firm has done so well compared to its active peers.
