Building and construction industry superannuation fund BUSS(Q) has flagged plans to tweak its pension fund investment strategy.
Chief executive David O'Sullivan said the fund was currently undertaking a manager search and was thinking about increasing its allocation to Asian equities.
"We're considering making a specific investment into Asian equity markets ex-Japan," O'Sullivan told Investor Weekly.
"We think there is a long-term growth in that area and it will be superior to most of the western economies, so we want to take an overweight position."
O'Sullivan hopes to make a decision on managers by the end of the year.
Meanwhile, this week BUSS(Q) Retirement Pension was named one of Australia's top five pension funds in SuperRatings' 2009 fund survey review along with Catholic Super Allocated Pension, First State Super Retirement Income Stream, QSuper Pension Account and Sunsuper Pension Option.
O'Sullivan said much of the pension fund's success can be attributed to its long-term investment strategy.
"We entered the infrastructure asset class early and we were able to buy good assets at reasonable prices. We've also never invested in listed real estate, which has been one of the hardest hit sectors, and that has kept us in good stead," O'Sullivan said.
As a longer-term strategy, O'Sullivan said the fund would like to find a way to assist members manage their longevity risk.
"But that's a much longer-term project to try to manage that one," O'Sullivan said.
BUSS(Q) has a strong track record for investment performance with each of the fund's diversified investment options (High, Growth, Balanced and Cash Plus) ranked either number one or two in their category for pension fund returns for the five years to 30 June 2009.
"Our balanced option averaged a 7.3 per cent return for five years, even after weathering the global financial crisis," O'Sullivan said.
