$40 Billion Austalian Pension Fund Rest Super Plans to Invest in Crypto
Retail Employees Superannuation Trust (also known as Rest Super) could become the first Australian retirement fund to invest in digital assets. However, Andrew Lill – CIO of the company – noted that cryptocurrencies are still a “very volatile investment,” and the company intends to enter the market with a “fairly small allocation.”
Crypto Is ‘Going Forward into The Future’
Rest Super revealed its intentions to jump on the cryptocurrency bandwagon during an annual general meeting reported by Business Insider. The firm’s Chief Investment Officer – Andrew Lill – said his company sees digital assets as a “very interesting and important part” of its portfolio that is “going forward into the future.”
Nonetheless, he touched upon the volatile nature of bitcoin and the alternative coins, which is why Rest Super is likely to start small:
“It’s still a very volatile investment, so any allocation exposure we make to cryptocurrencies is likely to be part of our diversified portfolio as initially a fairly small allocation that may, over time, build.”
The executive added that such an investment needs to be thoroughly examined before being executed. The regulatory uncertainty in the sector is also an issue, Lill concluded.
Established in 1988, Rest Super is one of the largest pension funds in Australia. It has around $40 billion in assets under management and nearly 1.7 million members.
QIC Also Eyes Crypto Investments
While Rest Super might become the first Australian superannuation fund to invest in digital assets, it is not the only one to show such intentions. As CryptoPotato reported last month, Queensland Investment Corporation (QIC) disclosed it might venture into the crypto market by making small investments.
However, apart from the aforementioned companies, Australia’s so-called super funds that manage the retirement savings of millions of people have been skeptical about delving into the digital asset sector.
Stuart Simmons – QIC’s head of currencies – explained this is a result of the uncertainty about how governments globally will intervene in the rapidly growing industry:
“Right now, there are a number of uncertainties, and the operational infrastructure for institutional investing remains immature.”
If the institutions have protection from asset theft and market manipulation, they will show more interest in cryptocurrency investments, Simmons added:
“I don’t think there’s an inevitability about super funds and the institutional market investing in crypto, but as the segment matures . . . there’s a likelihood that super funds seek out exposure.”