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The Top 10 Australia- and New Zealand-Based Investors in Hedge Funds

by Oodhav Jokhun

  • 28 Nov 2017
  • HF

Preqin’s Alternative Assets in Australia and New Zealand report showcases 180 investors actively investing in hedge funds based in these countries, a 108% increase from 2012. These investors represent 35% of all active hedge fund investors and 23% of all invested capital within the Asia-Pacific region. Furthermore, eight of the top 25 Asia-Pacific-based investors by allocation to hedge funds are based in Australia or New Zealand.

Investor Type
Superannuation schemes dominate the list of largest hedge fund investors in Australia and New Zealand: six of the 10 largest investors are superannuation schemes. However, the top spot is held by Melbourne-based sovereign wealth fund, Future Fund. The institutional investor gains exposure to the asset class through its listed equities and alternative assets portfolio allocation.

Strategies and Geographies Targeted
The largest investors maintain diversified portfolios of hedge funds, and each of these investors pursue an equity strategy. Furthermore, 80% of this group seek exposure to credit strategies and multi-strategy funds and 70% target macro strategies funds.

Eight of the 10 largest hedge fund investors in Australia and New Zealand target Asia and Australasia for hedge fund investments, while seven operate a global mandate; the developed markets of North America and Europe are targeted by nine and six of these investors respectively.

Outlook
Australia and New Zealand remain an important destination for fund managers looking to raise capital for hedge funds. Combined, the 10 largest investors in these countries invest $28bn in hedge funds, which equates to 7% of their collective assets under management.

 

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