Global superannuation funds will cut their positions in Australian stocks and bonds over the coming year, a new survey has revealed.
Nearly 71 per cent of pension funds will reduce the amount of Australian shares in their portfolios and add more alternative assets and global stocks.
Almost 93 per cent of funds said they will be cutting down on Australian fixed-interest securities like bonds.
Nearly nine out of 10 investment officials said they will add to holdings in alternative investments, with more than 69 per cent said they would buy more international shares, direct property, infrastructure, private equity and exchange traded funds (ETF).
Boosting cash holdings was also the consensus among the funds, who at present are more worried about the global credit crisis than inflation, the data showed.
Stagflation, increasing resource demand from China and India and the intentions of sovereign wealth funds were the smallest concerns among the pension funds.
Superannuation fund managers and asset consultants have viewed emerging markets, infrastructure, distressed debt, agriculture and green investments as potential investments in the next 12 to 18 months, according to the survey.
The survey was compiled after the Asset Allocation Summit Australia 2008, which included members from the global institutional investor community.
