Australian superannuation funds, which are pension schemes to which employers are required to make compulsory contributions, have about A$1.4 trillion ($1.24 trillion) in assets under management, according to the Australian Prudential Regulatory Authority. An estimated 10% of those assets are invested in alternative investments such as hedge funds, real estate and private equity.
According to those in the industry, a maturing market and disappointment with external manager or fund selection into alternatives is encouraging
the superannuation schemes to turn to in-house expertise. Sunsuper, an independent multi-industry superannuation scheme, and the
largest in Queensland, is one such fund. It has just hired a portfolio manager to refine the fund’s strategy for investing in absolute-return products. CIO David Hartley says: "We do already invest in absolute-return products and have hedge fund investments as part of a global tactical asset allocation strategy. The newly hired portfolio manager will...
