Hedge funds will receive a further A$1 billion (US$939 million) from Australian superannuation funds over the next five years, when the average hedge fund allocation is expected to rise one percentage point to 3.5%, according to a University of New South Wales survey.
Investment & Technology newspaper reports that the survey, commissioned by the Australian chapter of the Alternative Investment Management Association, showed 70% of the funds already invest in hedge funds, while 90% are expected to have made the jump into the asset class in two to five years. Institutional managers were favored by almost 65% of respondents over boutiques. The survey found that boutiques were “not securing any worthwhile market share” and had attracted only 6% of allocations from the funds surveyed. The survey covered trustees from major super funds representing more than A$100 billion and was conducted in the first quarter.
