Super funds caught out to be ‘a little over exposed’ during COVID-19

Sky News contributor Corey Bernardi says the Industry super funds which have become a “Union/ALP money printing machine” have been caught a “little over exposed” by the government's decision to allow early access to superannuation.

“The Union/ALP money printing machine that has marketed itself as having lower fees and superior returns has been caught a little over-exposed”.

“Their ‘superior performance’ is assisted by juicing up investment valuations on illiquid assets”.

Mr Bernardi pointed to the 26 industry superannuation funds who own ME Bank where because it is not listed on any stock exchange “even when profits go down, the value of the illiquid asset goes up”.

“It happened again last year; profits dropped around 30 per cent but the revaluation increased by 5 per cent; and that’s just one of many illiquid investments industry super funds put your money into and it helps explain how they always seem to produce such good investment returns”.

He said this is why when the government announced early access to 10,000 dollars of super, the industry super funds were “caught a wee bit short”.

“When coronavirus suddenly reversed the flow of money, the tide went out on industry super and believe me it’s not a pretty sight,” he said.

Image: Getty

Видео Super funds caught out to be ‘a little over exposed’ during COVID-19 канала Sky News Australia