👔 Economics Correspondent at the @FinancialReview 📧 michael.read@afr.com 📈 RBA economist in a former life 🤫 Send tips securely via https://t.co/5C7qP3ox0p
May 15, 2022 • 7 tweets • 2 min read
Some thoughts on this policy from an economist-turned-super writer: 1) Super for housing renders some funds’ investment strategies unworkable. More than 50pc of members at Rest & Hostplus are under 35. Funds can’t invest in high-return illiquid assets if they need cash on hand.
Other funds with lots of young members include Future Super (70% under 34), Australian Ethical (47%) and Cbus (41%). They will need ample liquidity available under this policy, meaning they will have to invest in lower-risk, lower-return assets to make it work.