RBA to bail out industry super funds

Originally posted by skypiliot ↑

my complaint is almost the opposite I have watched as retail fund supporters have past through several stages of attack

stage 1 when the present system was set up These people dont know what they are doing and are amateurs who will lose their members money

stage 2 When stage 1 did not result as they predicted and retail funds returns were usually performing worse than industry . The only reason they are doing well is the default clause in wage agreements .

stage 3 The industry funds are run by unions .This actually is factually incorrect as 50% of each industry fund board is drawn from employer organisations

stage 4 The industry funds do not have the funds to meet the extra demand as a result of the run on demand because of the changes to government regulations resulting from the coronavirus .
a. How would they know other than possibly host plus and despite news reports they actually have not frozen withdrawals just changed their rules so that they can.
https://www.copyright link/companie...thdrawals-stop-cash-switching-20200406-p54hjg
b as I posted previously mine just moved money to me faster than ever

Criticism of industry funds seems to come these days from bitter retail fund players and right wing idealogues who just do not accept that to date industry funds have performed very well in comparison to retail funds

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I have no issue with your analysis, I don't trust retail funds either. I have a friend who has a similar value in an industry fund and his 'paper' losses far exceed mine - 20% compared to my 7%. Of course this is all irrelevant depending age, investment mix etc. etc.
His annual returns exceed mine yoy, OK that's great but now that liquidity becomes an issue industry, nor retail funds should be bailed out. I'm not asking for a handout because I have ample liquidity, why shouldn't industry and retail funds be held to the same high standard expected of SMSF's.

As I have said before I don't run an SMSF to get 'high' returns, there are many other reasons for using SMSF's, generating high returns is near the bottom of the list in my case. So long as I can cover my annual expenses my investment strategy is very conservative. Industry and retail funds have a much higher risk profile and that's more to do with reputation and ego rather than the long term welfare of their members, but they do pay for exuberance this from time to time as we are now seeing.

If my SMSF doesn't have liquidity then ASIC will shut me down, or be penalised for breaching trustee legal requirements. Don't forget governments of the day have stuffed around with SMSF's as well so using the excuse that it's because of gov't policy they now have a liquidity issue doesn't pass the pub test.