Industry funds revalue unlisted assets

25 March 2020

In a move which confirmed some of the long-held criticisms of financial advisers, two major industry superannuation funds have reduced the valuations applied to their unlisted assets.

Reports confirmed that both AustralianSuper and UniSuper had made the move with AustralianSuper telling its members it had reduced the value of unlisted assets on its books by 7.5% while UniSuper said it had cut the value of its holdings in unlisted infrastructure by 6%, and its unlisted property holdings by 10%.

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The two industry funds moved on their unlisted assets at the same time that the Australian Prudential Regulation Authority (APRA) announced a change in regulatory focus amid the fall-out from the COVID-19 pandemic with an emphasis on liquidity and capital adequacy.

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I wonder how Scott Pape’s fund is holding up, you know the one that billions of dollars flew into on his recommendation. Those poor workers just lost their income overnight, HostPlus lost its SGC and there may well be a run on the fund with members needing the $10k. Hope they have plenty of liquidity.

Many of those poor workers also lost their auto accepted insurances when they switched from their employer's default fund to Pape's fund. The healthy ones may be able to get replacement insurance elsewhere if they figure out what happened quickly enough. Those with health issues may never be able to return to the same level of insurance.

These scumbags wouldn't have done so if the liquidity issue hadn't been forced upon it by the Gov easing of access rules, and instead they would have been touting their artificial 'outperformance' of retail funds. Sickening, ASIC needs a cattle prod to the rectum to be forced into investigating the rorts called ISA & IFM

That was timely. With the average punter grabbing $20k out of their super, they didn't want those left behind in the fund to suffer the greater losses later.

Which will be the next industry fund to follow with this direct asset downgrade? Think Hostplus, REST, TWUsuper?

Can't wait for the next "Compare the pair ads" Here goes:

"Jenny is in an industry fund and was stood down by here employer during the COVID 19 lockdown, Betty was in an retail fund and also stood down by her employer during the COVID 19 lockdown. Jenny's fund fell 50% during the COVID 19 due to her industry super fund having to reduce their artificially high valuations of direct assets in the past and share market falls. Betty's retail fund only fell 30%. When Jenny applied for $20k to pay her bills, this wiped out her industry fund account and she had to wait eight months to get her money and was subsequently evicted from her rental property. Betty got her funds straight away and is not homeless like Jenny. Compare the pair."

Love it.

oof, that's rough mate. Do you guys expect further write downs and sharp declines if this downturn lasts a few months?
I had to chuckle looking at the unit prices on the HostPlus website for my own reserach: IFM Infrastructure
I'd laugh more if it wasn't so sad, I almost feel like the few that get out now might be laughing in a couple of months, who knows.

Why isn't this news on "thenewdaily" website yet? Should it be renamed "thenewcensor" or "thecensordaily"?

Only 7.5% Why don't they use the true "fire sale" price. This could get ugly for them.

I'd like to know how these revisions are calculated and whether there is any oversight. To me a 7.5% reduction is probably about a quarter of what it should be given listed infrastructure is down over 30%. These funds basically just make up their own numbers.

I think they have a dart board, but negative 7.5 is the lowest number they have after all, they tell us they are investment gods due to being not for profit - yes, I saw a TV ad.

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