The degree to which superannuation funds are under pressure to keep a close watch on their liquidity has been revealed by a demand from the Australian Prudential Regulation Authority (APRA) that they complete a report on their liquidity position.
Superannuation fund executives have confirmed to Money Management that they have received a spreadsheet from the regulator on their liquidity position which must be completed by the close of business on 30 March.
The regulator’s move has come amid the loss of further jobs in the sports, hospitality and retail industries which are expected to have flow through effects on fund flows as superannuation guarantee payments dry up.
A number of major industry superannuation funds have also announced downward revisions to the value of their unlisted investments.
APRA announced last week that it was changing its supervisory priorities and would be maintaining a close watch on fund liquidity.