POWERED BY MOMENTUM MEDIA
Super funds lagging behind on private equity
Australian superannuation funds are only just catching up with allocations to private equity, according to Pengana, with allocations hovering between 4%-6%.
On a webinar, Pengana, which runs a private equity trust managed by Grosvenor Capital Management in the US, said Australia lagged behind the US and Europe.
Frederick Pollock, portfolio manager of the Pengana Private Equity trust, said: “Australia is still catching up. The Future Fund is up to 16.8% and the reasonably-progressive super funds are up at about 5% but are in the process of trying to catch up.
“If you look through their documentation, their stated goals are higher but it takes years to build up the portfolio adequately to get to those higher levels, particularly in the face of rising public markets.
“I think you’ll continue to see most institutional investors allocate to private equity and it will continue to build it up over time.”
For example, the Australian Super Balanced fund had 6% allocated to private equity, Aware Super Balanced Option had 5% and HESTA Balanced Growth had 4%.
The Pengana Private Equity Trust was currently in the process of an entitlement offer to raise $75 million to take part in new opportunities.
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
Future Group is set to take on nearly $1 billion in funds under management (FUM) and welcome more than 100,000 new members following two significant successor fund transfers.
Insignia’s Master Trust business suffered a 1.9 per cent dip in FUA in the third quarter, amid total net outflows of $1.8 billion.
While the Liberal senator has accused super funds of locking everyday Australians out of the housing market, industry advocates say the Coalition’s policy would only push home ownership further out of reach.
Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
90.28 3 y p.a(%)
2
GAM LSA Private Shares AU I
37.08 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.44 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.12 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
28.28 3 y p.a(%)
