Australian Pension Funds Lose A$ 91 Billion

Post by Sharat on December 25, 2008 · Under Australian Economy, Business News, Equities, Wealth Management, investments · Comment

Australian pension funds lost a combined A$ 91 billion or US$ 62 billion in the year to Sept 2008, which amounts to the equivalent of about 8 per cent of the country’s total economic output. The staggering loss is a direct consequence of the global credit crisis which has had the result of devaluing assets globally.

The Australian Prudential Regulatory Authority released data on Monday which showed total assets declining by 2.2 per cent in the third quarter and was the fourth straight decline. The total amount managed by Australian pension funds stands at A$ 1.15 trillion.

Australia’s benchmark All Ordinaries Index has slumped 45 per cent year to date as credit losses and write-downs have neared US$ 1 trillion. Equity markets globally have tumbled after losses relating to the US property market spilled into the general banking system freezing credit markets around the world.

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