‘Not risk free’: Super grapples with liquidity question
Australia’s largest superannuation fund has backed regulatory intervention as it acknowledges super funds need to do more to safeguard members’ money.
AustralianSuper has backed the prudential regulator’s year-long stress test of Australia’s financial system, as it says funds need to do more to manage the rising risks facing the $4.2 trillion superannuation sector.
Pension funds are hotly anticipating to see the initial results of APRA's year-long stress test later this week, which is expected to recognise key weaknesses. With these results looming, AustralianSuper chief liquidity officer Chandu Bhindi said more could be done to safeguard funds.
“This is not a risk-free system and that is why funds and regulators are working closely together to identify where the real risks lie so we can solve for these,” he told Capital Brief.
APRA’s stress test has helped with that, Bhindi said, with six funds, including AustralianSuper and Australian Retirement Trust (ART), participating alongside the big four banks.
