Instos seek unlisted property
Domestic superannuation funds are showing growing interest in deploying more capital into unlisted property as an alternative to their current cash holdings, according to Guy Sainsbury, senior investment analyst in Australian Unity Investments' (AUI) real estate team.
Sainsbury said domestic super funds had been long-term investors in real estate, but the volatility of equity markets during the height of the global financial crisis created portfolio issues for them.
Now that markets have "settled down" for a while, domestic investors are becoming more interested in assets that may have previously been considered niche, he said.
This formed the basis of AUI's push into the institutional space in relation to its unlisted property offering.
"In the areas where we are quite active in the institutional space - and that's healthcare and retirement - they're considered niche sectors here (in Australia), but they're very well-established in some of the other big markets, particularly the US and Europe," Sainsbury said.
"Those sectors remain of interest to global investors and also to domestic investors, depending on which asset class you're talking about."
Sainsbury said that while domestic funds have been investing into core asset classes - namely office, retail and industrial property - super funds would be looking to invest in more opportunities to grow their real estate portfolio.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Dan Farmer, chief investment officer of MLC Asset Management, has detailed how its super fund allocations have evolved and whether the fund will consider investing in bitcoin.
Australia’s superannuation capital has been positioned to play a larger role in south-east Asia’s economic development under a new government-backed deal.
Superannuation funds have become the dominant force behind Australia’s private markets boom, fuelling unprecedented growth and reshaping manager operations.
Reserve Bank governor Michele Bullock has said the central bank sees private demand picking up over the next year, taking over from public demand.
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(%)
