Australian superannuation funds have reduced their new commitments to alternative assets, according to global research from Watson Wyatt.
The global alternative survey found that in the face of the global financial crisis, alternative assets managed on behalf of pension funds by the world’s largest investment managers diminished by around 1 per cent to US$817 billion in 2008.
Watson Wyatt Australia head of portfolio construction group Ross Barry said the majority of superannuation funds in Australia have cut down their allocations to alternative assets over the past year.
“With a few exceptions, super funds in Australia put up their shutters over the past year,” he said.
“While inflows into alternatives continued, this was largely the result of commitments made in previous years and was broadly offset by downward revaluations.”
Many revaluations did not really come through until the first half of 2009, Barry said.
“I would expect a more significant net decline in global assets under management this year,” he said.
“However, if you look at the longer-term trends, our research indicates allocations to alternative assets have continued to rise and now account for 17 per cent of all pension fund assets globally.”
The survey also ranked 13 Australian asset managers in the top 100 alternative managers list. Macquarie Group, Colonial First State Global AM, AMP Capital Investors, Industry Funds Management and QIC were ranked within the top 50.
“This reflects the fact that Australian super funds are pioneer investors in private markets, particularly in the area of infrastructure,” Barry said.
The global alternative survey covered five alternative asset classes which included real estate, private equity fund of funds, fund of hedge funds, infrastructure and commodities.
