10 years ago I had a go at an industry fund over this (as an industry stake holder …. not as a retail investor) and they changed their options to include a fixed interest which would (I assume) include CDO crap and the like …. all of which pays fixed interest.
I am led to believe that cash is cash in this particular fund but who knows what the current situation is.
As a holder, I have the cash box ticked (and have for a while) because of the exposure other options have to banks and to various risky options around the globe. Cash is a bad option given the potential for the AUD to enter volatile times BUT I assume I can switch back ……. that is if cash is actually cash ……. and not loaned to zombie organisations that can't pay it back.
