While the spotlight of the Government's push for greater governance and disclosure measures may be trained on industry super funds, retail funds have the most to fear from changing regulation, according to Hostplus chief executive David Elia.
Elia said Hostplus welcomed government regulation and have had a three, three, three board composition since 2003. He said the board was named by Jeremy Cooper in the Cooper Review as the model all superannuation funds should strive towards.
"I think it provides an enormous amount of empathy and I think understanding of our industry more broadly, but it also allows us to provide an element of diversity and balance in terms of knowledge, expertise and industry perspective," he said.
Hostplus chief investment officer Sam Sicilia said the fund's decision-making process combined with favourable demographics has led to Hostplus' success.
He said at the heart of the decision-making process was the Hostplus board charged with making the "right" decisions. He said if super funds had the combination of characteristics and board structure, they "ought to expect better results".
"The fund demographics affords the opportunity to invest in certain asset classes over longer periods of time, and the board structure and the board's decision-making and the discipline of the board comes into play because there has to be a will to invest in the best interests of our members," Sicilia said.
Elia said HostPlus' leadership in the area of disclosure would continue as the fund worked to implement further transparency measures and improve disclosure one year earlier than required, beginning 1 July 2012.
"I've absolutely no doubt in my mind, it's actually our retail competitors who have most to fear in relation to the issue of independence, but also on the issue of disclosure," he said.
