Assets under management (AUM) for the top 100 alternative investment managers reached $3.1 trillion in 2012, with Macquarie Bank taking out the top spot in Towers Watson’s 2013 global alternatives survey.
The survey, which covered seven asset classes and seven investor types, showed that of the top 100 alternative managers, real estate managers had the largest share of assets (34 per cent), followed by direct private equity (23 per cent), direct hedge funds (20 per cent), private equity funds of funds (10 per cent), funds of hedge funds (6 per cent), infrastructure (4 per cent) and commodities (4 per cent).
According to Towers Watson, total global alternative AUM now sits at around $5.1 trillion.
A total of 19 Australian managers featured in the survey, with combined funds under management of US$240 billion.
Macquarie Group was found to be the largest infrastructure manager with around $95 billion, topping the overall alternative rankings.
Other Australian managers included AMP Capital Investors, Industry Funds Management, Charter Hall and Colonial First State Global Asset Management.
Apart from investors’ continual search for yield, Towers Watson senior investment consultant and head of manager research Hugh Doherty said the introduction of MySuper regulations was driving superannuation funds to reduce costs and find more cost-effective investment solutions.
As such, pension fund asset represented over a third (36 per cent) of total global AUM followed by wealth managers at 19 per cent.
“The ongoing economic uncertainty is likely to encourage investors away from simply holding equities as their main growth asset and towards a greater use of alternative assets,” Doherty said.
