A weakening of the Australian dollar over 2013 saw Australian super funds slide down the ranking of the world’s largest 300 pension funds, research showed.
The Pension and Investments/Towers Watson Global 300 research showed that a 14 per cent dip in the Australian dollar meant many super funds dropped an average of five places.
Among Australian funds, Future Fund came out on top, ranking 31, down from last year’s 29, with assets totalling $92.08 billion.
AustralianSuper ranked 47, up from last year’s 54, with assets totalling $69.59 billion while UniSuper ranked 102, up from 104, with assets totalling $38.54 billion.
Funds including REST, HESTA, Sunsuper and Cbus have dropped five places on average.
Australia did add one new fund to the survey with HOSTPLUS taking 290th spot, most Australian funds dropped in rankings.
The research showed defined benefit funds make up 67 per cent of total assets, down from 75 per cent five years ago. During 2013, defined benefits assets grew by around three per cent, compared to reserve funds (15 per cent), defined contribution plans (over nine per cent) and hybrids (over eight per cent).
Towers Watson senior investment consultant Martin Gross said quantitative easing and easy monetary conditions have boosted equity markets in the past five years but many mature funds are still diversifying in other asset classes as they de-risk their portfolios.
“There is also broad acknowledgement that quantitative easing and low interest rates will not last forever and that recent exceptional equity market growth is unlikely to repeat in 2015,” Gross said.
