Finance & Fury Podcast

Welcome to Finance and Fury, the Furious Friday edition. Today – want to run through what is happening within the industry superannuation environment – not looking good With the market crash – cracks in the financial system are starting to appear – with almost no asset class but cash being safe – a lot of super funds have gone down in value – but this isn’t the only issue when it comes to industry funds The issue is the type of investments held – which have been placed in illiquid – i.e. hard to redeem investments – such as private equity, infrastructure or direct property – lots of funds have 25%-30% of their investment balances in illiquid investments – cant easily be sold down to meet redemptions So as people request switches out of their one size fits all allocations of ‘growth’ or ‘balanced’ to cash or other asset allocations like conservative, they are having a hard time to do this When it comes to markets – the saying goes that ‘A rising tide lifts all boats’ – but a low tide can leave boats stran