Australian pension fund Rest Super could be the first pension fund in that country to invest in crypto.
Retail Employees Superannuation Trust (aka Rest Super) could become the first Australian retirement fund to invest in digital assets. This resolution got implied by Andrew Lill, the company’s CIO, who spoke about it at the annual general meeting with investors.
At the same time, he noted that cryptocurrencies remain a volatile investment, and the company intends to enter the market with a small allocation.
The information initially came from the Business Insider medium. There Lill, chief investment officer, said the company sees digital assets as a vital part of its portfolio that moves into the future.
However, the officer highlighted the volatile nature of Bitcoin and altcoins, adding that it is still a very volatile investment so any allocation exposure to cryptocurrencies is likely to be part of a more diversified portfolio, as it is initially a small allocation that can grow over time.
The executive also added that said investment must get examined before being executed. Regulatory uncertainty in the sector is also a problem, in Lill’s words.
Established in 1988, Rest Super is one of Australia’s pension funds. It has more than USD 40 billion in assets under management (A $ 66 billion) and almost 1.7 million members.
It’s Not the Only One
Cryptopotato highlights that while Rest Super could become the first Australian retirement fund to invest in digital assets, it is not the only one showing such intentions. Also, Queensland Investment Corporation (QIC) has raised it.
However, says the outlet, apart from the companies, Australia’s so-called superfunds that manage the retirement savings of millions of people have been skeptical of delving into the digital assets sector.
In this regard, the head of currency of QIC, Stuart Simmons, said that as the segment matures, super funds are likely to seek exposure, but it will probably represent a small flow of liquid rather than a flood.
There is a lot of interest in crypto from Australians. This week, this interest got recognized by the Minister of Financial Services, Jane Hume, who said that crypto was not a passing trend and that they have captured the hearts and minds of Australians.
Hume responded to Tony Richards (Head of Payments at the Reserve Bank of Australia), who recently described cryptocurrencies as “whimsical.” Additionally, Richards warned investors that the asset class has the potential to collapse, and therefore, people could lose a substantial amount of money.
Meanwhile, Hume, in an interview with the Australian Financial Review, disagreed with the statement. She believes that the cryptocurrency industry is a sensitive area, which the local government must approach carefully but without fear. In this regard, she stressed that the governing entity of Australia should also refrain from seeing Bitcoin and altcoins as a trend.
By: Jenson Nuñez
