I inquired about my understanding from my Super fund and the posting of the broker confirms my understanding!
If the applicants request is approved on a particular date because his shareholding is valued at $10 grand. If the fund has no cash, it has to sell his shared on the market to convert it into cash.
The sale of the applicants shares may not achieve getting $10 grand on the market. Due to the shortfall other members equites will have to be sold to make up the difference, resulting in member's unit price decreasing in value.
The Coalition have never liked the strength of the Industry Funds due to them having some influence on the board of companies.
It has crossed my mind that Scomo see this crisis as an opportunity to damage these Industry Super funds financially and abate their influence on the board of companies. The majority of applicants for emergency assistance will be members of a Industry Fund.
Why would he mention that the Industry fund's should bailout Virgin Airlines without encouraging other participants too join in?
The Labor party and Union's should be pressuring the RBA to supply the liquidity for these Super fund's. That is to facilitate smooth release of monies without further damaging the current income stream of retires due to the virus effect on the equities markets.
