Australians lead the way in alternatives allocations
Almost double the number of investors in Australia are investing in alternatives compared to their counterparts in Asia Pacific, according to PIMCO.
The firm surveyed 2,500 investors in the region, including 500 in Australia, and found 61% of Australians had exposure to alternative assets compared to an average of 33% in the Asia Pacific region.
“Australian respondents have a greater exposure to alternative assets than the region as a whole. This again may be related to their higher levels of domestic investment; 61% report having invested in real estate at some point (excluding their own residence) against an APAC average of 33%,” it said.
Source: PIMCO
They were also expected to buy more commodities than other countries with the asset class being the most ‘in-demand’ asset among respondents over the next three months. PIMCO said this was driven by the fact Australia was far more resource-dependant than other Asia-Pacific regions coupled with the tendency to buy domestic equities.
“This may be related to Australia’s preference for domestic assets (which compromise an average 75% of portfolios) compared to the other four Asia Pacific markets (which average 70%), given that it is a resource-rich country and commodities have played an outsize role over a long period of economic growth.”
Source: PIMCO
Earlier this week, Ausbil’s chief investment officer Paul Xiradis said the commodities super-cycle would be a benefit for the country as China would be reliant on resource in order to fuel its growth plans.
AUTHOR
Laura Dew
Recommended for you
Selfwealth has provided an update on the status of its scheme implementation deed with Bell Financial Group as well as whether rival bidder Svava remains in the picture.
Magellan Financial Group has reported its first half FY25 results while appointing a new chief financial officer and promoting Sophia Rahmani to chief executive.
Schroders Australia has launched two active ETFs and plans to further expand its listed range over the year ahead.
Platform Netwealth has reported its financial results for the first half of FY25, reporting an 80 per cent increase in net flows, with its CEO viewing a “huge opportunity” from private assets.
