Superannuation funds to boost direct property holdings: Rice Warner

Superannuation funds to boost direct property holdings: Rice Warner
Superannuation funds to boost direct property holdings: Rice Warner

Major superannuation funds will boost their holdings of direct property as the population ages, according to predictions by actuaries Rice Warner.

“With the consolidation of the market, there will be a shift to more illiquid investments as the very large funds will have significant, stable and predictable cash flows. Investments in infrastructure and property will grow,” the actuaries said in their report, Ageing and Capital Flows prepared for the Financial System Inquiry.

Investment may be directed towards Australian assets over the next decade, due to past under-investment and new opportunities, the report noted, but as domestic demand was satisfied superannuation funds would have to look offshore.

Rice Warner said fund managers and asset consultants on average expected direct property to return 7.9% over the next decade.

Listed property was expected to gain 8.2% over that time frame, while Australian shares and international shares were forecast to return 8.8% and 8.5% respectively.

Zoe Fielding

Zoe Fielding

I am a freelance journalist and editor with more than 15 years experience specialising in personal finance, property, financial services and financial technology. A skilled writer and researcher, I have extensive experience producing high quality content for corporate and media clients. I am used to working to tight deadlines and tailoring the pieces I produce to suit a variety of audiences and formats.

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