A recent meeting between the elite and knowledgeable touted the idea of long term business lending being introduced to the investment strategies of public offer superannuation funds as a way forward.
The meeting hosted by Anthony Pratt included heavy weights Gina Rinehart and Lindsay Fox to mention a few. I guess you could say “well why not”, as no doubt on the other side of the coin these are employers who support the system.
In a nutshell they were discussing the potential viability of superfunds lending to business and the gist is that they were after long term business loans. On the face of it the proposal has some merit when considering that Australian Companies employ Australians and so logic would tell you it’s a good thing to keep them strong.
It’s good at least to see that something has been keeping them awake at night! Perhaps if this gets up and by the sounds of it the mechanics of making it happen isn’t as easy as it sounds, it also isn’t hard to imagine that this could potentially open up the door to super funds lending to their members for home and personal loans, locking in loyalty.
The idea of industry funds lending to fund projects in their industry makes logical sense, however I am sure that there will in many cases be a need to ensure that each project and lend is going to benefit the members as this at the end of the day is the reason for the whole existence of superannuation and should be fiercely protected.
If you have any superannuation issues or questions, feel free to contact Optima Partners – Your Pathway to Personal & Financial Security on 6267 2200.