Australia boasts fastest-growing pension assets
Australia has the fastest-growing pool of pension assets in the world, according to the latest data issued by Towers Watson.
The latest Towers Watson Global Pension Asset Study has revealed that Australia’s pension assets now comprise 4.8 per cent of global pension assets, up from only 1.7 per cent 10 years ago.
The Towers Watson analysis said that no other country in the top 13 had experienced a larger increase in the total global pension assets pie over the past decade or a greater rise through the ranks than Australia.
Commenting on the finding, Towers Watson director of investor services Graeme Miller said the rise in Australian pension assets was largely attributable to the country’s strong economy, buoyant equity markets, the ongoing contribution of the superannuation guarantee and the former Government’s Better Super tax changes introduced in 2007.
Where Australian superannuation funds differ from their global counterparts is that they have a higher allocation towards equities.
The Towers Watson study found that around 49 per cent of funds were invested in equities last year although, at the same time, 25 per cent of funds had been directed towards alternative assets, making Australia the second-highest investor in alternatives behind Switzerland.
Miller predicted that while Australian funds would remain enamoured with equities the trend towards alternatives would continue.
AUTHOR
Mike Taylor
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
