Australian Institute of Superannuation Trustees (AIST) will oppose any Government move to encourage funds to invest in Australia's securitisation industry.
Last week, Treasury executive director of markets group Jim Murphy told a parliamentary enquiry that the Australian Government could urge superannuation funds to invest in the local securitisation market, including the residential mortgage-back securities (RMBS) sector.
"We would be very surprised if the Government would be thinking about such a move," AIST policy and research manager Andrew Barr said.
"We would strongly oppose such a move as we believe directed investment is inconsistent with the current market-based approach to superannuation."
The credit crunch has meant higher funding costs in the sector, with market participants finding it difficult to access liquidity and as such super funds may play a role.
If pension funds had not increased their investments in RMBS, the Government "may start looking" at its options in getting pension funds to buy the securities, Dow Jones reported last week.
The Government remained silent on Treasury claims with Treasurer Wayne Swan's office refusing to answer Murphy's comments.
AIST represents the $450 billion not-for-profit superannuation sector.
