Australian Pensions to Shift Into Equities and Alternative Investments
Reversing recent declines, Australian pension funds plan to increase their allocations to equities and alternative investments in coming months, according to a study by Greenwich Associates. Last year, Australian pension funds reported declines in domestic equities allocations and even larger decreases in international equities. But funds expect a turnaround this year, according to Greenwich Associates consultant Sandhya Chand. ‘In the coming year, liquid assets and domestic bonds are likely to be replaced by equities, international bonds and private equity,’ she said. Chand’s conclusions are based on the results of the 2003 Greenwich Associates study of Australian Investment Management. The study also revealed that salaries for investment professionals climbed last year, while bonuses fell.