Clarke said the new portfolios would also provide more protection against inflation, although the firm was not predicting a significant blow-out in inflation around the world. Mercer generally expects a “slow grinding recovery” to continue over the medium term. Infrastructure and natural resources have been taken out of the alternatives bucket and given their own categories, in recognition of a greater weighting for those investments. Remaining alternatives include things such as insurancelinked securities, mezzanine debt, global tactical asset allocation products and hedge funds.
Investments
The $205 billion Aware Super says that around 15 per cent of assets in its high-growth option are exposed to the AI thematic, but says that finding the portfolio's true concentration will require looking beyond simple dollar aggregation. Head of investment strategy Michael Winchester unpacks the approach and why the fund has to be “really discerning” with where it allocates to in the future.
Leave a Comment
You must be logged in to post a comment.