“Fund liquidity has been well-managed in the not-for-profit sector so we do not see the need for increased liquidity requirements which would only raise costs and lead to lower returns for members. There is more to managing liquidity than the size of capital requiremens,” Reynolds said.
Investments
Ian Patrick, chief investment officer of the $370 billion Australian Retirement Trust, says that integrated balance sheet management will “beyond a shadow of a doubt” become a more prominent feature in the superannuation industry as funds grapple with the compounding effects of their growing size, systemic importance and the liquidity needs of servicing a larger cohort of retirees.
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