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Written by Tamikah Bretzke Colonial First State |
Recently, there has been some media coverage surrounding the ‘liquidity’ of super funds and their ability to support the Australian Government’s early access to super initiative, which was designed to help support members financially impacted by Coronavirus. Understandably, this may have caused some questions from members about what this might mean for their super.
In the financial world, the term liquidity refers to how easily an investment or product can be turned into cash. So for superannuation, liquidity can refer to how much cash a super fund holds, or how easily a super fund’s investments can be converted (or sold) into cash.
Generally speaking, the more liquid an investment is, the easier and faster it is to buy and sell. For example, shares are considered highly liquid as they are frequently bought and sold on share markets. However, direct investments in property or infrastructure are considered less liquid because of the time and difficulty often associated with buying and selling them for a given price.
Liquidity can be important for super funds for several reasons, including:
Colonial First State offers a range of options to help Australians with their super, investment and retirement needs – all of which are managed by skilled investment specialists.
As a member, you can feel confident knowing that our funds have the liquidity necessary for helping eligible members access their super during this uncertain time. You can also feel confident knowing that as developments continue to unfold, we will remain in close communication with our investment specialists to carefully review market conditions and closely monitor the liquidity of our investments – not only ensuring our funds are well-placed to meet their regular requirements, but also allowing us to prepare for and respond to changing market and economic conditions.
We’re dedicated to supporting our members – both in growing wealth for retirement, and in providing them with the knowledge and tools necessary for making more informed decisions for their financial futures. Members can visit our website for timely market updates and education resources to help further their financial understanding and navigate the current climate.
Disclaimer
Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) is the issuer of super, pension and investment products. This document may include general advice but does not take into account your individual objectives, financial situation or needs. You should read the relevant Product Disclosure Statement (PDS) and Financial Services Guide (FSG) carefully and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. The PDS and FSG for Colonial First State’s products are available at colonialfirststate.com.au or by calling us on 13 13 36.
Disclaimer
Information on this webpage is provided by Avanteos Investments Limited ABN 20 096 259 979, AFSL 245531 (AIL) and Colonial First State Investments Limited ABN 98 002 348 352, AFSL 232468 (CFSIL). It may include general advice but does not consider your individual objectives, financial situation, needs or tax circumstances. You can find the Target Market Determinations (TMD) for our financial products at www.cfs.com.au/tmd, which include a description of who a financial product might suit. You should read the Financial Services Guide (FSG) available online for information about our services. This information is based on current requirements and laws as at the date of publication.
Tax considerations are general and based on present tax laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.
AIL and CFSIL are not registered tax (financial) advisers under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or a registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise under a tax law.