SYDNEY, Australia—Australian fund managers overseeing the country’s A$2.6 trillion ($1.91 trillion) retirement savings pool are misrepresenting as cash what are in fact investments in risky credit instruments and derivatives, a regulator said on Friday.
In a letter to fund managers, the Australian Prudential Regulatory Authority (APRA) said it had “identified examples in the industry where ‘cash’ investment options appear to include exposure to underlying investments that would not generally be considered cash or cash-like in nature”.
