Australia’s largest superannuation funds say they are stockpiling cash and stress testing their solvency amid an escalating offshore pension fund crisis and a global shift toward owning safer assets.
Local superannuation funds have been watching United Kingdom’s pension funds desperately scramble to sell assets, including bonds, Australian mortgage backed securities and global equities to meet margin calls. This has been triggered by margin calls relating to the hedging strategies UK funds put in place to protect them from falling interest rates.