Australian Pension Fund ‘Rest Super’ Ready to Seek Exposure to Crypto
Pension funds across the world have been seeking some exposure to crypto for a while! This time, it’s Australia’s Pension fund ‘Rest Super’ that is ready to make the move. As reported by Business Insider Australia, it is the first superannuation fund from Australia showing interest in exposing its member portfolio to the asset class. Interestingly, this news comes just within two days of the Pension Fund industry referring to cryptocurrencies as too risky.
On Tuesday, November 23, during Rest super’s annual general meeting, the chief investment officer Andrew Hill gave a go-ahead to the funds to digital assets. He told all the participating members that a small portion of their funds shall soon be invested in cryptocurrencies. Addressing all the members, Lill said:
“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. We see it as a very interesting and important part of our portfolio going forward into the future.”
Crypto Investment Likely In Medium Term
The Australian pension fund won’t be making any investment in the near future. However, some exposure in the medium-term is certainly on the cards. “We are currently conducting extensive research into the asset class prior to making any decisions,” Lill said. “We are also considering the security and regulatory aspects of investing in this class.”
Rest’s decision to seek exposure to crypto has met with some hesitation from executives at a number of funds across the country. But Rest Super is not among the first to think of such measures. The New Kiwi Pension fund is also working on a similar plan. The same goes for the Virginia pension fund.
In Australia, the Queensland Investment Corporation (QIC) is also mulling a similar exposure to crypto. QIC’s head of currency, Stuart Simmons, said: “as the segment matures”, there’s a likelihood that super funds seek out exposure, but that “it’s probably going to represent a trickle, rather than a flood”.
The decision from Rest Super comes as Australian lawmakers are keen on making crypto part of the country’s financial system. Earlier this week, Jane Hume, the Minister for the Digital Economy said that digital assets are NOT a fad and that they are not going anytime soon.