Australian Superannuation Funds in Alternatives
As market-movers in their home country of Australia, superannuation funds have grown significantly in the past decade to reach AUD 2.7tn in assets. Traditionally heavily weighted towards domestic equities, property and infrastructure assets, there are signs that change is afoot as rising interest rates and asset prices threaten to destabilize their tried-and-tested success strategies.
Produced in association with an impressive roster of Australian superannuation funds, this report combines first-hand industry viewpoints with data from Preqin Pro to investigate what lies ahead for these local behemoths.
Five of our top findings include:
- Superannuation funds make up 40% of institutional investors in Australia
- These funds have recorded post-crisis growth in AUM of approximately 12% each year since 2008
- High pricing and growing interest rates are pushing some funds towards alternatives
- Increasing dialogue surrounding global diversification
- Growing interest in riskier strategies such as venture capital and real estate debt