By Pirkko Juntunen
Australian pension fund industry mirrors the country in its
uniqueness. Australian pension funds, known as superannuation
funds (super funds for short) have an asset pool of US$1.1
trillion, or the equivalent of 90% of GDP, in 2010. This number
is estimated to reach some $1.8 trillion by 2015 and by 2025
make up 120% of GDP, making it a growth market for asset
management. As investors look to diversify, this represents an
attractive pool of potential funds for alternative investments
and hedge funds in particular.
Australia is one of the few countries in the world with a
compulsory contribution system. Known as the Superannuation
Guarantee (SG), it currently requires employers to make a
contribution on behalf of their employees of 9% of salary -
which may soon be increased to 12%.
The Australian government recently conducted a broad tax
review, including a review of...