Rest Super had initially informed its members that cryptocurrencies are suitable investments with the rise of inflation in the country. For many, this statement implied that the fund manager would be investing its client’s funds in these digital assets. The company has since clarified that it is still investigating the market.
Rest chief investment officer Andrew Lill said that the fund explained that the digital asset class had caught the firm’s interest. He disclosed that the asset class could form an essential part of their portfolio in the future. It suggested that the asset managers are looking to invest in cryptocurrencies.
Mr. Andrew said that cryptocurrencies could be a good investment in times of inflation. He said this in response to a question at the annual meeting of the fund yesterday. The economist who studied at Cambridge informed the public that the fund is determined to take every necessary precaution to look into the emerging market.
The investment officer disclosed that they believed that the market was quite volatile. The volatile nature of the market meant that any investment made into the space by the company would initially be small. The small size will reduce their risk exposure in the hopes that it will build over time.
Mr. Andrew believes that there are benefits in exposing their client’s portfolios to the cryptocurrency market. He believes that they can create consistent value and change the financial world as we know it. A spokesperson went on to say that no final decision had been made by the fund managers as regards the digital asset class.
The Company’s Stand
In the statement, the company said they are indeed looking for ways to diversify their client’s portfolios. They, however, clarified that even though cryptocurrencies are being considered, they are not in a hurry to move funds into digital assets. They stated that they are evaluating the asset class, and also, they are looking at the legal aspects of investing in them.
During the Australian Financial Review Super & Wealth Summit, the chief executive officer of the firm, Vicki Doyle, was asked if the company intended to invest in cryptocurrencies. The top executive answered in the negative, stating the company had no plans to do so presently. She said that the risks at the moment seemed high, but in order not to be left behind, they had to keep an eye out for opportunities.
The Debate In The Australian Super Funds Sector
Currently, no Australian Prudential Regulation Authority regulated organizations have added cryptocurrencies to their list of assets under management. Many super funds are believed to be weighing up the pros and cons of the asset class as a way of diversifying their portfolios. Sources report that the statements by Andrew Lill are the most positive about the asset class by a Superfund executive.
The top executive of AustralianSuper, Paul Schroder, doesn’t seem to see things the same way with Lill. He categorically stated that his firm had no interest in investing in cryptocurrency. He is personally fascinated by other aspects of the technology but doesn’t believe that cryptocurrencies can generate the firm’s desired outcomes.