POWERED BY MOMENTUM MEDIA
(December-2004) Investment options
Most of Australia’s major superannuation funds returned to conventional investment strategies in 2004 on the back of the pick-up in domestic and international equities and as returns moved back into the black.
The result was that while alternative investments such as hedge funds and private equity remained a factor in asset allocations, they were not pursued with the vigour which marked the closing months of 2003.
According to InTech Financial Services the real driver for superannuation returns through 2004 was the strength of Australian equities which rose by 19 per cent in the first nine months of the year, far outstripping the performance of international equities which rose by just 4 per cent over the same period.
Also helping generate strong returns over the period was listed property which rose by 22 per cent.
Despite the return to traditional asset allocations, many fund executives believe the nearly two years of negative returns experienced between mid-2001 and the end of last year justifies continuing to pursue alternative asset classes.
AUTHOR
Mike Taylor
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