POWERED BY MOMENTUM MEDIA
Australian funds pioneers in alternatives
Australian superannuation funds have proven to be pioneer investors in private markets, pushing Australian companies well into the Top 100 list for alternative managers, according to a new analysis by consultancy firm Watson Wyatt.
Commenting on the manner in which funds have allocated towards alternative assets, the head of portfolio construction group at Watson Wyatt in Australia, Ross Barry, said while Australian super funds had put up the shutters with respect to investment into alternatives over the past 12 months, they had nonetheless been pioneers.
He said while inflows into alternatives had continued over the past 12 months, this had largely been due to commitments made in previous years and was broadly offset by downward revaluations.
Looking at Australian superannuation fund exposures to alternatives, Barry said that there were 13 Australian managers in the Top 100 list and “this reflects the fact that Australian super funds are pioneer investors in private markets, particularly in the area of infrastructure”.
He said it was not all doom and gloom in the alternatives world and that long-term investors had been selectively investing in certain strategies, notably private equity, in the knowledge that in times of adversity good managers had made significant money for investors in the past and could well do so again in the future.
Barry said according to the broader research, the majority (52 per cent) of alternative assets managed on behalf of pension funds are invested in North America, while a third are invested in Europe and 11 per cent in the Asia-Pacific.
AUTHOR
Mike Taylor
Recommended for you
SuperRatings has shared the top 10 balanced options of the last financial year.
Rest Super remains “fully committed” to equities, even as it anticipates higher market volatility than experienced in previous decades.
Australian superannuation funds have again generated strong returns for FY25, with the median growth fund returning 10.5 per cent for the year, according to Chant West.
The US remains a standout destination for innovation and commercialisation, according to MLC Asset Management chief investment officer Dan Farmer.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
