Decision-making in the management of property investment by Australian superannuation funds

Tiffany Hutcheson () and Graeme Newell
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Graeme Newell: Economics, Finance and Property Division, School of Business, Western Sydney University, Sydney, NSW, Australia

Australian Journal of Management, 2018, vol. 43, issue 3, 404-420

Abstract: Decision-making in property investment by superannuation funds is an important investment decision, but it is different to their decision-making on other asset classes included in their asset portfolios. The large value and heterogeneous nature of individual pieces of real estate make the market for real estate relatively illiquid and subject to larger transaction costs than other asset classes. Based on interview surveys of Australian superannuation funds, using the analytical hierarchical process (AHP), we identified strategic decision-making as being the most important factor used by the superannuation funds when making decisions on the management of their property investment portfolio. Comments during the interviews indicated that their decisions were influenced by restrictions in their fund’s investment mandate and the level of funds that they had to invest. The AHP technique has allowed this research to provide a more in-depth understanding of the management of decision-making factors than previous surveys.

Keywords: Asset allocation; managerial decision-making; real estate; superannuation; survey (search for similar items in EconPapers)
JEL-codes: G11 G23 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:ausman:v:43:y:2018:i:3:p:404-420

DOI: 10.1177/0312896218754476

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