- Australian pension funds tend to have a relatively high exposure to shares and lower allocation to bonds.
- Reflects a range of factors including the relatively strong performance of Australian shares, tax, demographics and the small Australian corporate bond market.
- The share allocation may fall a bit over time, but now is not the best time to undertake a big structural switch into bonds, as poor returns from shares in recent years have boosted their medium term potential at the same time that very low bond yields point to low bond return.
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