“Source: Money Management – February 8th, 2011”

Australia has the fastest-growing pool of pension assets in the world, according to the latest data issued by Towers Watson.

The latest Towers Watson Global Pension Asset Study has revealed that Australia’s pension assets now comprise 4.8 per cent of global pension assets, up from only 1.7 per cent 10 years ago.

The Towers Watson analysis said that no other country in the top 13 had experienced a larger increase in the total global pension assets pie over the past decade or a greater rise through the ranks than Australia.

Commenting on the finding, Towers Watson director of investor services Graeme Miller said the rise in Australian pension assets was largely attributable to the country’s strong economy, buoyant equity markets, the ongoing contribution of the superannuation guarantee and the former Government’s Better Super tax changes introduced in 2007.

Where Australian superannuation funds differ from their global counterparts is that they have a higher allocation towards equities.

The Towers Watson study found that around 49 per cent of funds were invested in equities last year although, at the same time, 25 per cent of funds had been directed towards alternative assets, making Australia the second-highest investor in alternatives behind Switzerland.

Miller predicted that while Australian funds would remain enamoured with equities the trend towards alternatives would continue.

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