Australian institutional investors showed a preference for property when it came to looking to appoint new investment managers last year, according to data released this week by Mercer Investment Consulting.
The Mercer data looked at global investment manager search activity from region to region over the year and concluded that, in Australia, investors were seeking diversification and higher returns.
It said Mercer had conducted 97 searches in Australia affecting assets valued at nearly US$3.9 billion last year, with property being the most popular mandate in rising from 10.9 per cent to 23.7 per cent of activity, and US$1.1 billion in assets placed.
Commenting on the findings, Mercer head of research in Asia Marianne Feeley said that overall, 2005 had represented a below average year in terms of search activity.
“In general, clients were satisfied with their current investment manager mix, and strong performance of equity and fixed income markets have given them little reason to reconsider that structure,” she said.
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