Australia's two largest pension funds are planning to increase their investments in unlisted assets due to concerns about the financial risks associated with large private portfolios.

AustralianSuper, which manages A$341 billion, aims to raise its allocation to private holdings to over 30% of total assets within the next three to five years, up from the current 23%. Alistair Barker, Head of Asset Allocation at AustralianSuper, described this as a significant program for a fund of its size, highlighting the strategic shift towards private investments in response to market dynamics.

This reflects a broader trend among pension funds to diversify their portfolios and mitigate potential risks in a changing financial landscape.