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Australian funds deliver fastest growth
Times may be tough but Australian superannuation funds are continuing to lead the way in growing their members' wealth, according to new research released by Watson Wyatt.
The Watson Wyatt research conducted with a US publication, Pensions & Investments, revealed that Australia's large superannuation funds had grown at the fastest rate of their global peer group over the past five years when measured in local currency terms.
However, there is no questioning the degree to which the global financial crisis has hit global pension funds, with the total assets of the world's largest 300 funds falling by 13 per cent in US dollar terms last year, declining US$1.5 trillion to stand at US$10.4 trillion.
The research found that the Asia-Pacific region had recorded the highest compound annual growth rate during the period of 19 per cent a year, with the lowest growing region being North America, which recorded just 4 per cent growth.
It said over the past five years, Australian superannuation and sovereign funds experienced the highest asset growth in local currency terms of all countries, increasing by 14.4 per cent.
Commenting on the data, Watson Wyatt Australia's head of investment client consulting, Martin Goss, said the world's largest pension funds had not been exempt from the GFC and had been set back a number of years.
He said the growth rate of pension assets in the Asia Pacific, particularly in Australia, mirrored the growing economic and financial importance of the region.
The Watson Wyatt data revealed that the 12 Australian funds in the global 300 ranking had a combined asset size of US$218 billion and were ranked as followed: Future Fund, State Super, AustralianSuper, QSuper, Unisuper, ARIA, ESS Super, First State Super, REST, HESTA, Sunsuper and Cbus.
AUTHOR
Mike Taylor
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