Rest Super to invest in crypto
Rest is among the first APRA-regulated funds to publicly express interest in investing member money in cryptocurrencies. Market sources said that it was unlikely any funds already had crypto exposure. The fund has been approached for further comment.
Founded as the Retail Employees Superannuation Trust in the late 1980s, Rest had $65.8 billion under management and 1.81 million members at June 30, making it one of the nation’s largest pension funds by customer numbers. Half of its members are under the age of 30 and 60 per cent are female.
Bitcoin baseball cards
The relatively bullish stance on crypto markets contrasts with that of $233 billion sector giant AustralianSuper, whose new chief executive, Paul Schroder, categorically ruled out deploying member money to the market.
Paul Schroder at the Summit on Monday.
“We don’t see cryptocurrency as investible for our members,” Mr Schroder told The Australian Financial Review Super & Wealth Summit on Monday.
Although the AustralianSuper chief said he was interested in decentralised finance and blockchain protocols, cryptocurrencies did not meet the fund’s criteria for an investible asset because they do not generate an income stream. He said AustralianSuper does not hold gold in its portfolios for the same reason.
The comments come as players in the traditional funds management industry are increasingly being expected to take a position on the legitimacy of crypto assets, which are now worth about $US2.6 trillion globally.
US-based behemoth Vanguard, the world’s second-largest asset manager, has derided cryptocurrencies, describing them as more akin to collectables such as baseball cards, rather than a serious asset class. Vanguard is preparing to launch an APRA-regulated super fund in Australia next year, competing with former clients in the $3 trillion super sector.
Joe Longo, chairman of the Australian Securities and Investments Commission, told the Summit on Monday that he would not be a “cheerleader” for cryptocurrencies, describing the demand for digital tokens from retail investors as “extraordinary”.
“It is almost an article of faith that no one should invest in something they don’t understand,” Mr Longo said.“Who among us can say they really understand crypto-assets, and cryptocurrencies?”
But Superannuation Minister Jane Hume told the Summit cryptocurrency investing was not a fad and that Australia should not close itself off to potential crypto-related innovation or economic gains.
