POWERED BY MOMENTUM MEDIA
Super funds look to alternatives to cut costs
With MySuper regulations pushing superannuation funds to reduce costs, Towers Watson's latest research has found this has driven parts of the industry to seek more cost-effective investment solutions like alternatives.
Based on a survey of the top 100 alternative asset managers globally over the year to December 2012, Towers Watson found that pension fund assets represent over a third (36 per cent) of total global assets under management for the asset managers surveyed, which reached $3.1 trillion in 2012.
Pension funds were followed by wealth managers (19 per cent), insurance companies (9 per cent), sovereign wealth funds (6 per cent), banks (6 per cent), funds of funds (3 per cent) and endowments and foundations (2 per cent).
"The ongoing economic uncertainty is likely to encourage investors away from simply holding equities as their main growth asset and towards a greater use of alternative assets," Towers Watson senior investment consultant and head of manager research Hugh Doherty said.
"We think the effort to diversify in this way is worthwhile, but investors need to be cautious about choosing the best and most efficient vehicles, not forgetting the increasing number of cheaper and lower governance routes for improving investment efficiency such as using smart beta."
Of the top 100 fund managers, 19 Australian managers featured in the survey, with combined funds under management of US$240 billion.
Macquarie Group topped the Australian listings as well as the overall global rankings with $95 billion in assets under management (AUM).
This was followed by AMP Capital Investors, Industry Funds Management, Charter Hall and Colonial First State Global Asset Management.
AUTHOR
Staff Writer
Money Management staff writers are writers who contribute to the website from time to time. If you would like to discuss the content contained within this article please contact us.
Recommended for you
Economic growth was weaker than expected, once again highlighting an economy largely sustained by population growth and government spending.
In this latest edition, Anna Shelley, CIO at AMP, shares the fund’s approach to current market conditions and where it continues to uncover key opportunities.
The mega fund has announced a $2.2 billion investment in a leading data centre platform, bringing its global real assets portfolio to nearly $60 billion.
In this latest edition, Australian Retirement Trust’s head of global real assets Michael Weaver explains the fund’s approach to finding new opportunities as it surpasses $300 billion in funds under management.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
