Private equity and venture capital boost super funds
Long-term investors in Australian private equity and venture capital have been given a boost thanks to a 22 per cent net return for the sector in 2014, a private equity and venture capital firm, and an investment advice provider said.
The Australian Private Equity and Venture Capital Association Limited (AVCAL) found the sector delivered positive returns for all but one of the last 15 years.
"The last two years saw returns of over 20 per cent net of fees for private equity and venture capital, which demonstrates the value our sector generates for investors," AVCAL chief executive, Yasser El-Ansary, said.
"The double-digit returns that have been generated over the longer term also demonstrate that a meaningful allocation to the sector can significantly boost performance for super funds, sovereign wealth funds, or other investors with a long-term horizon."
Managing director at Cambridge Associates in Sydney, Eugene Snyman said the strong returns were driven by record distributions back to investors.
"Long-term investors in Australian private equity and venture capital have benefited from strong outperformance over listed markets for the five, 10, and 15 year periods."
Recommended for you
Ethical super fund Australian Ethical has announced the appointment of Anthony Lane as chief operating officer.
The structural shift towards active ETFs will reshape the asset management industry, according to McKinsey, and financial advisers will be a key group for managers to focus their distribution.
ASIC has warned that practices across the $200 billion private credit market are inconsistent and, in some cases, require serious improvement.
A surge in electricity prices has driven the monthly Consumer Price Index to its highest level in a year, exceeding forecasts.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
225.31 3 y p.a(%)
2
Loftus Peak Global Disruption Fund Hedged
120.73 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
72.47 3 y p.a(%)
4
Paradice Australian Mid Cap A
69.09 3 y p.a(%)
5
Global X Ultra Long Nasdaq 100 Complex ETF
61.94 3 y p.a(%)
