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

Author

Listed:
  • Tiffany Hutcheson

    (Finance Discipline Group, UTS Business School, University of Technology Sydney, Ultimo, NSW, Australia)

  • Graeme Newell

    (Economics, Finance and Property Division, School of Business, Western Sydney University, Sydney, NSW, Australia)

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.

Suggested Citation

  • Tiffany Hutcheson & Graeme Newell, 2018. "Decision-making in the management of property investment by Australian superannuation funds," Australian Journal of Management, Australian School of Business, vol. 43(3), pages 404-420, August.
    • Handle: RePEc:sae:ausman:v:43:y:2018:i:3:p:404-420
    DOI: 10.1177/0312896218754476
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    References listed on IDEAS

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    Cited by:

    1. Martina K Linnenluecke & Mauricio Marrone & Abhay K Singh, 2020. "Conducting systematic literature reviews and bibliometric analyses," Australian Journal of Management, Australian School of Business, vol. 45(2), pages 175-194, May.

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    More about this item

    Keywords

    Asset allocation; managerial decision-making; real estate; superannuation; survey;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

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