Register  
Super fund private equity inflows constant
Thursday, 23 February 2012 12:05pm

Australian superannuation fund inflows into private equity have remained constant despite fears of a lag in interest, with Asian investors also investing in this space, according to speakers at a BNP Paribas event this week.

Dr Katherine Woodthorpe, chief executive of Australian Private Equity and Venture Capital Association (AVCAL) said Asian investors are investing in the local private equity market either through fund-to-fund or direct pension fund investments, while local pension funds remain active.

"Australia has remained constant although people are fearful that Australians super funds and the like are putting less towards private equity but the numbers have remained constant with 43% over five years matching 42% over the last 12 months," said Woodthorpe.

According to Asian Venture Capital Journal (AVCJ) research, private equity and venture capital funds raised US$2.3 billion in Australia in 2011, a 72% increase over the previous year, although only three funds were listed as primary sources.

BNP Paribas, which holds a strong focus in alternative investments on a global scale, hosted the event on private equity for local economists and fund managers, with fellow guest speaker Erik Hirsch, chief investment officer at Hamilton Lane, a private equity investment management firm with US$22 billion in discretionary assets under management, providing a global outlook for the asset class.

"Most people believe that global equity markets will generate single digits returns. For most managing a portfolio, your expectation is that 8% actuarial rate returns are the common target these days and people are looking for something that is going to generate excess performance. Private equity is one of the few assets that has consistently done that," said Hirsch.

Hirsch said that private equity investors are waking up to the fact that they don't need as many fund managers as they thought they use to with one of the biggest mistakes investors make being overly diversified portfolios.

"This means people are going to get a lot more rational about how many fund managers they want on their portfolio."

Hirsch said there is a backlash occurring against mega fund managers in the market and that people, worried about these massive pools of capital, are questioning whether that will be the ideal way to generate private equity performance and therefore will prefer to deal with smaller fund managers.

Blogs
Follow the industry experts.
Christopher Page
Christopher Page
Managing Director

Breaking out from the FoFA catch-22
Ever since the first draft of the Future of Financial Advice (FoFA) legislation came out, the advice sector has been trapped in a very ...read more
 
Benjamin Ong
Benjamin Ong
Chief Economist

Reflation, rotation and the taper
'Tis being my final type (drivel, to some gentle readers) for the year, we'll take a look back at the 2013 that was to seek the lessons ... read more
 
Alex Dunnin
Alex Dunnin
Director of Research & Editorial Services

MySuper: our verdict is in
Has MySuper worked? Has it lowered fees, simplified superannuation products, lifted returns and made people better off? Yes, yes ... read more
News Search   
VideoBrought to you by
Managed Accounts Forum 2014 Highlights
Around 150 delegates attended Financial Standard's inaugural Best Practice Forum in Managed Accounts held in Sydney in August. Financial Standard also launched a new magazine: FS Managed ... Watch video
Introduction to Series #07
What are the key challenges advisers face when building retirement portfolios for clients? Watch Joe Fernandes, Head of Global Investment Solutions at Colonial First State Global Asset Management. Watch video
Why Multi-Asset Solutions?
Joe Fernandes, Head of Global Investment Solutions at Colonial First State Global Asset Management talks about the advantages of objective-based investing in the multi-asset space. Watch video
The New Neutral
At this year's PIMCO Secular Forum, the company's global executives set themselves the challenge of taking a three to five year view and anticipate where the market would be against what investors would ... Watch video
Colonial First State Multi-Asset Real Return Fund
Find out more about the investment philosophy and objective of the Colonial First State Multi-Asset Real Return Fund. Senior Portfolio Manager, Kej Somaia explains. Watch video
Get it
Daily
FREE to your inbox, get the Financial Standard Daily Email.
Get the Free
iPad app
Download the Financial Standard iPad app for FREE
Industry
Events
SEP
19
OCT
07
Major Market Players Symposium
14
Unlock the value of diversification with mFund
15
Investment Performance Measurement, Attribution & Risk Management
16
Unlock the value of diversification with mFund
20
Family Office Forum
News
Bites
Advertisement

$245 (inc GST) for 1 year
 
 
Copyright © 1992-2014 Rainmaker Group
All material on this site is subject to copyright. All rights reserved. No part of this material may be reproduced, translated, transmitted, framed or stored in a retrieval system for public or private use without the written permission of the publisher.
Link to something OyE9Kzby