Forex freefall

The collapse of the Australian dollar against the greenback in the past three months has exacerbated the funding pressures being placed on Australia's superannation funds. Rachel Alembakis reports

Liquidity risk is a major concern for the A$1 trillion ($680 billion) Australian superannuation industry, which manages the country's retirement assets. After a year of negative returns for the sector, and with individual members shifting from relatively aggressive investment options into more defensive, cash-based investment schemes, superannuation fund managers are keen to make sure they have adequate reserves. That is increasingly difficult, due to the growing illiquidity of assets previously