Negative rates force Aussie super funds to review targets
The country's superannuation funds are telling members to expect lower investment returns, as industry experts say the concept of a risk-free rate no longer exists.
Putting aside the current political storm over Australia’s proposed changes to superannuation contribution and tax rules, the single biggest problem for Aussie superannuation funds is the protracted low-interest-rate environment and its effect on long-term returns, say local industry experts.
Aussie super funds are now reviewing long-term return targets in response to the 'lower for longer' outlook on investment yields.
The Sydney-based consultancy SuperRatings reports that the …
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