Deloitte Actuaries and Consultants finds the use of unlisted property and alternative assets has improved the risk and return of portfolios.
Implemented consultants have been increasingly using unlisted property and alternative assets to improve the risk and returns of portfolios, according to the latest analysis by Deloitte Actuaries and Consultants.
The Deloitte survey found that in a year in which most balanced funds delivered their first negative return in five years, several consultants reconsidered the asset allocations of their balanced funds and achieved better return incomes.
"We did expect consultants with a higher exposure to unlisted property to outperform their peers, but going forward we also need to remind ourselves of the risks associated with such investments," Deloitte director Michael Gonserall said.
Given the unlisted property index outperformed the listed index by over 50 per cent last year, there is the possibility of a lag effect, with unlisted property tipping to decline in value, he said.
"The question looking ahead for investors is whether Australian unlisted property will suffer a similar decline in value as Australian listed property has over recent times."
The survey found that the average balanced fund return for the year ended June 30, 2008 was -9.7 per cent compared to the five-year return of 10.6 per cent per annum.
In Part 2 of our exclusive series, we ask leading names to nominate their best investments, the most effective industry group and the importance of platforms.
Since last month's issue, newspaper headlines have continued to scream out doom and gloom about the current markets, among them "Super losses", "Savage write-offs" and "More bad news".... read more »
Home delivered!
Daily news, weekday mornings
Get the day's news delivered direct to your inbox. Register here (it's free!) and choose 'yes' to receive the InvestorDaily newsletter.
Catholics revamp fixed interest »
Industry superannuation fund the Catholic Superannuation and Retirement Fund (CSRF) has revamped its fixed income portfolio.
Mercer backs alternatives »
Mercer has awarded $34.15 million in mandates to Tactical Global Management (TGM) and Lazard Asset Management to invest in alternative assets.
It is a belief of some planners that ASIC lost the opportunity to make inroads into the licensing of planners eight to 10 years ago when it was just getting on its feet.... read more »
