AUSTRALIA - Proposals by the Australian Prudential Regulation Authority (APRA) to publish fund data are "sub optimal" and could mislead investors, the Investment and Financial Services Association (IFSA) believes.
APRA intends to consult with the industry later this year on future data collections - with a particular focus on asset allocation and investment option levels.
Until then it plans to use return on assets (RoA) figures, the net earnings after tax divided by the average assets for the period - a move that particularly concerns the IFSA.
IFSA chief executive officer Richard Gilbert added: "It is important that the development of league table data proceed on the basis that the best outcome is achieved. A rushed and highly compromised outcome will not assist investors.
"In this regard, a single figure trust level return on assets is merely an aggregation of the investment experience of thousands of members - in hundreds of investment options, across multiple products. It is not reflective of the investment experience of any one member or group of members.
"IFSA is concerned that RoA data as an interim measure would have the potential to mislead investors."
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