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Strategic Asset Allocation Survey

We recently completed our update of strategic asset allocations for the growth options (61% to 80% growth assets) of over 50 major superannuation funds, and the results for June 2009 are summarised in the tables below.

Over the past year, there has been an increase in the allocation to alternative assets. In June 2008, the average exposure to alternatives across the industry was 11%, and in 12 months that has grown to 14%. Industry funds have made further moves to lower the dependence on shares while increasing their exposure to alternative assets to 19% (up from 17%). Over the same period, master trusts and consultants increased their average exposure marginally, from 8% to 10%.

The industry average exposure to unlisted assets is now 19% with industry funds again leading the way with an allocation of 28%. Master trusts and consultants generally have much lower exposures to unlisted assets, with an average of 9%.
Average Strategic Asset Allocations at 30 June 2009 (%)
Asset Sector Industry
Funds
Public Sector
Funds
Corporate
Funds
Master
Trusts
Consultants Master Trusts
& Consultants
Industry
Average
Aust Shares 30  26  30  33 32 33  31
Int’l Shares 24 29 27  27 27  27 26
Aust Listed Property 1 4
Aust Unlisted Property 5 11 7 1 2
Global Property 1 3 3 2
Alternatives 13  5 7 9
Total Growth 73 76 74 73 73 73 73
Cash 4 4 4
Aust Bonds 10 10  10  8
Int’l Bonds 10 10 10  10  8
Aust Property 4 0 0  0 2
Alternatives 5
Total Defensive 27 24  26 27 27 27  27
TOTAL 100  100 100 100  100   100 100
Statistics
Growth/defensive assets split 73/27   76/24 74/26 73/27 73/27 73/27 73/27
Aust/int’l share split 30/24   26/29 30/27 33/27 32/27 33/27 31/26
Aust/int’l property split 9/1 12/0 7/3  5/3 4/3  4/3  7/2
Unhedged/hedged int’l shares (%) 15/9   12/17 15/12 20/7  17/10  18/9 16/10
Unlisted assets (%) 28 26  17 11  19

Breakdown of Alternative Assets at 30 June 2009 (%)
Asset Sector Industry
Funds
Public Sector
Funds
Corporate
Funds
Master
Trusts
Consultants Master Trusts
& Consultants
Industry
Average
Private Equity  4   6  1 1 1 1 2
Infrastructure 7 1 4  1 2  2  4
Hedge Funds/Other 8  8  5  6 9  7  8
TOTAL 19   15 10   8  12  10 14

Breakdown of Unlisted Assets at 30 June 2009 (%)
Asset Sector Industry
Funds
Public Sector
Funds
Corporate
Funds
Master
Trusts
Consultants Master Trusts
& Consultants
Industry
Average
Property 11  6
Private Equity 1 2
Infrastructure 7 1 0 0 3
Hedge Funds/Other 8 6 9
TOTAL 28 26 17 8 12 19

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