Institutional Investors

Australian pensions reign as regional leaders in alternatives allocations


Australian pension funds are the largest investors in alternatives in Asia-Pacific compared to their regional peers, and rank only second to Switzerland on a global basis, according to the latest Towers Watson Global Pension Asset Study.

In 2010, 25% of Australia’s estimated $1.26 trillion in pension assets were allocated to alternatives – which include hedge funds, private equities and real estate – compared to the 18% invested in 2005 and 8% in 2000.

By comparison, Japan’s pension pool – which is the second-largest in the world at $3.47 trillion – allocated only 4% of assets to alternatives last