Unlocking Higher Returns: Superannuation Funds Urged to Increase Property Allocation
Property is a valuable investment in a diverse portfolio. Australian superannuation funds typically allocate only 10% to property, but research suggests increasing this to 17% can improve returns. By analyzing 17 years of data, it was found that a higher property allocation can enhance the risk-adjusted return profile of the portfolio. This means that increasing the allocation to property can potentially lead to better investment outcomes for superannuation funds.