• Fri. Jan 27th, 2023

Australian retirement fund to invest in crypto as it offers hedge against inflation


Apr 22, 2022

We are still considering the regulatory aspects of such investments, a spokesperson said 

Rest Super, the Australia-based superannuation fund has announced that digital assets will form an important part of the retirement fund management company’s portfolio in the coming years.

With the rapidly rising adoption of cryptocurrencies across the world, digital asset investments have increasingly become a crucial strategy in diversification for traditional finance institutions.

In the company’s annual general meeting held yesterday, Chief Investment Officer Andrew Lill told stakeholders that Rest Super is all set to become the first retirement fund in the country to invest in crypto. However, considering the inherent volatility of the digital asset market, the company aims to proceed “carefully and cautiously,” he 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.” 

Lill stated that cryptocurrency and blockchain offer members tech-based exposure that can act as a “stable source of value”. He further highlighted cryptocurrency’s benefits as an inflationary hedge to explain the company’s decision. 

In a statement after the event, a Rest spokesperson clarified that while the company was definitely considering crypto as one of the ways to diversify its members’ retirement savings, digital asset investments in the near future was unlikely: 

“We are currently conducting extensive research into the asset class prior to making any decisions. We are also considering the security and regulatory aspects of investing in this class.” 

Rest Super manages more than $46.8 billion worth of assets from over $1.8 million members.

While the $2.4 trillion superannuation sector has been wary of investing in the crypto market, that trend might see some slight changes going forward, Queensland Investment Corporation currency head Stuart Simmons recently stated. However, considering the nature of the industry, investment in crypto is “probably going to represent a trickle, rather than a flood,” he added.



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